Wondering how all that tech used by your stockbroker offers any advantages for you and your stocks? Good question. Let’s take a look at the tech currently being used and the way it probably (or maybe) benefits you.
Let’s first take a peek at online trading platforms. There is a wealth of convenience and ease in using a platform to trade stocks, bonds, and mutual funds, among others. Platforms offer real-time data, which is invaluable for jittery investors, along with research tools, data analytics, and portfolio management tools. Packed with so much greatness, you wonder why these platforms aren’t running the entire nation.
Next up, let’s look at Artificial Intelligence (AI). Although we cringe while reading that AI is taking over academics and copywriting, AI is a solid tool used by stockbrokers to evaluate data. This data is delivered in useful formats and is almost always perfect in the analysis. AI is also useful for kickstarting a new business while using this start up business plan template. Yes, AI gets an A+ in benefits you receive as a result.
What about big data analytics? If you’re playing with the big stock brokerage firms, you may be on the receiving end of some big benefits from “big data,” which is another way of saying, “risk assessment data analysis of potential investments.” Big data is exactly that: the revelations include connections between industry trends, or global alignments that create viable entities, and other big ideas from big brokerage firms. It’s big.
Chatbots are also big, but are they a benefit to investors? Hm. Chatbots are the pretend-folks behind the website sidebars that are titled, “Let’s Chat,” as if something constructive is about to happen. The chatbot may answer when you have a question; it’s really a toss-up. No matter how serious the question may be, the answer from the chatbot is perky: “Let’s check that out. Just give me a minute.” After 3 minutes, the screen goes blank, leaving you to wonder if chatbots are allowed union breaks. Sure, chatbots are beneficial for stock brokerage firms; I’m not convinced we are all that excited about chatbots in return.
Next, we have the infamous blockchain technology. Blockchain is used to streamline processes via the use of a “ledger book” that records everything digitally in blockchain-style. Blockchain technology is remarkably similar to Legos, except that Lego bricks fit together seamlessly, whereas blockchain is an intangible process, so who knows what is actually going on in that ledger? Truthfully, unless there is an exceeding firm grip on the “recording” part of the process, I’d be inclined to look over my shoulder while talking with my stockbroker.
An interesting tech feature, called “High-Frequency Trading,” (HFT) is now being used to make millisecond trading purchases. High-frequency trading is a system that uses advanced computer systems to execute trades at unbelievable speeds. This type of trading has become wildly popular in the stock market because it executes transactions in milliseconds. Forget seconds, it’s milliseconds. In fact, the entire act of trading has become so fast, HFT has recently enabled traders to make millisecond trades without even being present at their desks. Is there a benefit to the customers of stockbrokers in HFT? It appears the brokers get to have an out-of-body experience with each trade order, but the rest of us are left with computers that are powered by, sadly, a slow second-by-second system. That’s not right.
One dandy tech used by probably all stockbrokers is customer relationship management (CRM) software. This is a seemingly benign program that advances administrative projects, tracks customer requests, schedules and keeps the calendar with alerts, and other desk-job management-type tools. I’m certain this is a benefit to the customers; however, the reason isn’t totally clear. If you’d like to email this question to your stockbroker, the CRM will generate a template answer within 72 hours.
The last tech to mention are the new robo-advisors. These part-robot, part-trader advisors appear to provide trading solutions amid automated processes. Does this offer any benefit to the customer? I’m sure they do, but frankly, all I can see in my mind’s eye are robo-advisors, looming over my chair, demanding that I buy high and sell low.
Finally, a few words about cybersecurity software, which is solidly in the beneficial column. It does a great job protecting identities, encrypting messages, and adding layers of security to my secret cupcake recipe.
