How The Push for 5G Is Impacting The Forex Market

The forex market is worth an estimated $1.93 quadrillion and has grown 2.5-times more significant than the world’s GDP, with no sign of slowing down. Global currency trading relies on advanced technology to keep things running smoothly because, without it, everything would not function efficiently or achieve anything like its current level.

A Brief Introduction of Mobile Trading

The forex market is the only entity of its type that’s accessible for 24 hours a day, with trading staggered across three separate sessions during this time. This helps investors trade significant currency pairs effectively in different international time zones while accounting because most orders are now executed online. In the absence of physical exchange, traders must process orders through the computer connected to the global marketplace via series networks.

Now, to trade effectively and profitably execute real-time orders worldwide, investors must rely on a secure network that is reliable and has high speeds.

The Different Generations of Network Technology

A growing number of traders are investing through software such as the MetaTrader 4 and 5, which can be accessed using broadband cellular networks.

These networks play a pivotal role in today’s world – they essentially serve as Wi-Fi strength connections for your phone or tablet device. It was recently announced that we had reached generation five with this technology entering mainstream adoption.

The last iteration of the 4G network was a massive leap in speed and efficiency from earlier iterations. The first generation, which went live around 1990, allowed for digital phone calls and texts to be sent and received.

In 2004 an improved 2nd Generation came out with improvements on upload speeds but not download rates; 3rd Gen followed suit by increasing both aspects and adding latency reduction (meaning faster data transfer) to make it worth the improvement.

How will 5G Impact the Forex Market?

“The newest iteration of 4G is not as impressive an improvement from the previous version. However, 5G promises download speeds up to 20 times faster than what we are used to now–a welcome advancement for people who are trading on the Forex market.” according to a spokesperson from ForexToStocks, a leading online brokerage research firm based in Singapore.

The question remains whether MT4 and MT5 platforms require faster download or processing speeds to operate more efficiently. With the rise of 4G connectivity, traders can satisfy themselves with fast downloads without high bandwidths.

The answer many are asking still looms: do you need a higher connection speed for your MetaTrader platform? The short answer would be no because these days, most people have access to 4G networks that fulfill all their needs when it comes down to trading on an app like this one.

5G networks may reduce response time to ping servers, opening up the possibility for faster trade executions. For short-term, day traders who operate within tight windows and execute multiple orders simultaneously, this will be a welcome change with great potential benefits.

5G has the potential to reduce ping time from 100ms down to 10ms. This would give traders a slightly competitive edge against their competitors, who would still be stuck with outdated 4G or 3G connections that are slower and limit how fast they can trade on live markets.

Reference: The Technology Behind the Forex Market and Why It’s Important. https://www.ceotodaymagazine.com/2019/06/the-technology-behind-the-forex-market-and-why-its-important/