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May 03, 2023

Gian Foy Explains How Technology has Impacted Investing



Investing has come a long way from the days of traditional brick and mortar stockbrokers to the digital age of today. Expert Gian Foy of Scranton, PA says that the emergence of technology has significantly changed the landscape of investing, making it easier, faster, and more accessible to investors. In this article, we will explore the various ways technology has impacted investing, the benefits it offers, and the challenges it presents.



Technology and Investing: A Brief Overview

Investing is the act of putting money into a financial asset with the hope of generating a profit in the future. Traditionally, investing was done through stockbrokers or investment advisors who would execute trades on behalf of investors. However, the emergence of technology has changed the way investors access the markets and manage their investments.

Investor Gian Foy says that the integration of technology has made investing more accessible and more comfortable for a broader range of investors, from retail investors to institutional investors. The use of technology has enabled investors to access markets, research potential investments, and execute trades quickly and efficiently, from anywhere in the world, at any time of day.

Impact of Technology on Investing

Automated Investing

Technology has made investing more accessible to the masses through automated investing. Automated investing, also known as robo-investing, uses algorithms and computer programs to manage investment portfolios. This method of investing offers a low-cost alternative to traditional investment advisors, making it accessible to investors who may not have had access to professional investment advice in the past.

High-Speed Trading

High-speed trading is a type of trading that uses advanced technology to execute trades quickly and efficiently. High-speed trading algorithms analyze market data in real-time, enabling traders to make trades within fractions of a second. This method of trading has revolutionized the financial markets, allowing traders to profit from market movements in real-time.

Mobile Trading Apps

Mobile trading apps have made it possible for investors to manage their investments from anywhere in the world. Mobile trading apps allow investors to access their accounts, execute trades, and monitor their portfolios from their smartphones or tablets. This technology has made investing more accessible and convenient, enabling investors to keep track of their investments on the go.

Robo-Advisors

Robo-advisors are automated investment platforms that use algorithms to manage investment portfolios. Robo-advisors offer a low-cost alternative to traditional investment advisors, making it accessible to investors who may not have had access to professional investment advice in the past. Investor Gian Foy says that robo-advisors provide investors with automated investment advice based on their investment goals, risk tolerance, and time horizon.

Online Brokers

Online brokers have made it possible for investors to trade stocks, bonds, and other financial instruments from the comfort of their homes. Online brokers offer a range of investment options, research tools, and trading platforms, making it easier for investors to manage their investments. Online brokers have made investing more accessible, transparent, and cost-effective for investors of all levels.

Benefits of Technology in Investing

Accessibility

The integration of technology has made investing more accessible to a broader range of investors. With the advent of mobile trading apps and online brokers, investors can now access markets and manage their investments from anywhere in the world, at any time of day. This has opened up investment opportunities to individuals who may have previously been excluded due to geographical barriers or lack of access to professional investment advice.

Transparency

The use of technology has increased transparency in investing. With the availability of real-time market data, investors can make more informed investment decisions. Online brokers and robo-advisors also provide investors with detailed information on fees, expenses, and investment performance, allowing investors to better understand the impact of their investment decisions.

Lower Costs

Technology has significantly reduced the cost of investing. Robo-advisors and automated investing platforms offer investment services at a fraction of the cost of traditional investment advisors. Online brokers also offer lower trading fees and commissions, making it more cost-effective for investors to manage their investments.

Increased Efficiency

The use of technology has increased the efficiency of investing. Automated investing platforms, high-speed trading algorithms, and mobile trading apps enable investors to execute trades quickly and efficiently, reducing the time and effort required to manage investments. This has made investing more accessible and convenient for investors of all levels.

Challenges of Technology in Investing

While technology has brought many benefits to investing, it has also presented challenges.

Cybersecurity

The use of technology in investing has increased the risk of cybersecurity threats. Investors need to be aware of the risks of cyber attacks and take steps to protect their personal and financial information.

Overreliance on Technology

Investors should be cautious not to become over-reliant on technology when making investment decisions. While algorithms and automated investing platforms can provide valuable investment advice, investors should also seek professional investment advice when making significant investment decisions.

The Need for Human Input

Despite the benefits of technology in investing, there is still a need for human input. While robo-advisors and automated investing platforms can provide investment advice, they may not take into account the nuances of individual investors' goals, risk tolerance, and investment time horizon. Investors should seek professional investment advice when making significant investment decisions.

The Future of Technology in Investing

The use of technology in investing is expected to continue to grow in the future. As technology continues to advance, investors can expect to see more innovative investment products and services. However, investors should also be aware of the potential risks associated with new investment products and seek professional investment advice when making significant investment decisions.

Final Thoughts

Technology has significantly impacted investing, making it more accessible, transparent, and cost-effective for investors of all levels. However, technology has also presented challenges, including cybersecurity threats, overreliance on technology, and the need for human input. As technology continues to advance, investors can expect to see more innovative investment products and services, but they should also be aware of the potential risks and seek professional investment advice when making significant investment decisions.



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