The UK financial market is massive. The House of Commons Library released statistics that the UK financial market had around £27 trillion in assets. It’s a market that’s arguably growing faster than ever, thanks to online trading platforms. The online trading platform market is itself projected to grow at a CAGR of ~8% from 2022 to 2028, worth $11.42 billion in 2024, according to the Business Research Company. That massive growth rate will feed into the UK market.
Read on to learn how they’re changing the UK financial market.
1. A New Era of Accessibility
A few clicks on your phone, and you’re trading. Whether it’s the MT4 app for B2B trading or any others you want to select for individual trading, joining is almost instant.
Previously, trading and investing were considered the prerogatives of financial elites. Today, apps have streamlined this accessibility by providing:
- Mobile Trading: Mobile trading was the key to opening up the market. They’re now so sophisticated, showing indicators, different chart types, and a user interface people can actually use. It allows traders to strategise while on the move, with more than 120 indicators, 19 chart types, and a user-friendly interface. And all people need to do is download the app, sign up using standard sign-up forms, and away they go. Most of these apps also have training packages and simulations for newbies.
- Low Barriers to Entry: While investing in the stock market typically required a significant amount of capital, online trading platforms now allow individuals to begin trading with as little as £100. Well, you can do it with as little as you want, in reality, but £100 is a good number if you have it to lose!
- Diverse Instruments: The panoply of markets now offered by trading platforms includes forex, cryptocurrencies, commodities, and equities. You can trade pretty much anything you want.
The MT5 app is also another good example for how accessibility for everyone is becoming the norm.
2. Leveraging Advanced Technologies
Artificial intelligence (AI) and machine learning (ML) technologies within trading platforms have significantly changed the manner traders are used to analysing and engaging with the markets. These technologies help provide information, improved decision-making, and risk management practices. Key improvements consist of:
- AI-Driven Analytics: Interestingly, AI uses a lot of computational power to analyse volumes of data to detect trends and anticipate certain direction changes in the market. A lot of trading integrates AI with human knowledge to provide realistic trading signals, which, when combined with human input, tend to provide greater chances of success.
- Algorithmic Trading: Automated trading strategies based on ML automatically carry out trades at the best possible price and time, greatly reducing the chances of making an error while increasing overall efficiency, especially useful in highly dynamic markets.
- Cloud Computing: Such systems based on a cloud model allow users to log into their accounts from any device geographically, affording further enhanced convenience to individual and institutional investors. Cloud systems nowadays do allow for complex applications and retain good performance.
3. Enhancing User Experience and Education
The user interface, or UX design, has secured a central place in all contemporary trading platforms. A lot of people using online trading platforms are novices—the UX design has to be something they can follow. If it wasn’t for that, we don’t think the market would have had such a strong growth pattern.
Here are some of the ways platforms are enhancing the UX:
- Intuitive Design: Users want quick access through the use of touch. Online trading platforms ensure that a trader, irrespective of their experience, can operate with ease. The range of in-house-developed charting and graphing systems streamlined for use with mobile devices is remarkable.
- Educational Resources: As we mentioned, most platforms give their clients access to webinars, tutorials, and e-books. Research indicates that well-informed traders tend to be assertive and make better choices, which in turn ensures greater activity. The better people are doing, the more likely they are to return.
- Risk Management Tools: All online trading platforms should have risk management tools. Real-time risk assessment is essential to successful trading.
4. Competitive Pricing and Transparency
Also contributing to the growth of online platforms is competitive pricing. The performance-based pricing demonstrates how platforms are responding to cost pressures:
- Low Spreads: Traders should try to find platforms boasting spreads of less than 0.0 pips (or close to that) during most active periods by aggregating volumes from suppliers. Such transparency guarantees that traders pay the lowest rates available.
- Minimised Slippage: Enhanced systems cut down on lag time in execution, allowing the best possible slippage to traders. Such features are essential in building trust and loyalty.
- Regulatory Compliance: Brokers supervised by the FCA and ASIC maintain trust through rules. As evidenced by the best trading platforms standing as multi-regulated firms, platforms should strive to provide a safe and transparent trading experience.
The UK financial market is undergoing a profound transformation. It’s so much more advanced than 10 years ago. As the market grows—projected to reach new heights by 2028—online trading platforms will only expand to be more accessible to everyone. Whether you’re a seasoned investor or a beginner, the opportunities are limitless. The future of trading in the UK is here, and it’s more dynamic than ever.