Most companies nowadays use modern digital technology in some way or another, even when they operate in a low-tech way such as face-to-face customer contact. But for some, tech is central to what they do.
Either way, the need to upgrade technology comes about every so often. This may seem like an imposition, an inconvenience and a matter of extra cost as old systems become obsolete and the new software ceases to be compatible with them, but there are positives too.
New tech means a range of extra possibilities open up. It is worth noting now that the smartphone in your pocket has more computing power than the devices used by NASA when they put men on the moon. That shows the potential for advances in technology to process and disseminate more information faster than ever before.
Why Tech Matters So Much For Prop Firms
Bringing this to bear on prop firm software, you might consider the benefits of new advancements in this way. Could your trading be better than ever with improved tech? Just imagine the ways you could gain from being better able to spot quick opportunities to capitalise on, either for a big transaction or the marginal gains of a scalping transaction.
A key difference between prop firms and many other types of company is that these exist as a result of the information age. While some companies, products and services have become obsolete in modern times (when did you last pay for a newspaper?) others, such as e-commerce, have become a thing only because the technology has come into existence.
The modern prop firm is a case in point, being something that has existed for just a decade. You may well have an idea of this because your own firm will be no older than that and probably a lot younger.
Quite simply, every prop firm is as much a product of the 21st century as the Smartphone and apps. In each case, you may wonder how we ever managed without them.
Avoiding Complacency
However, that also creates the possibility that your firm assumes that because the tech you are using is pretty new, you are automatically at the cutting edge. But, in an age when software and IT move forward so fast, that kind of complacency could be very dangerous. Even if you don’t end up with something obsolete, you could still concede an edge to rivals.
The point to remember is that you are looking to provide the best possible service for your clients. As a prop firm provides a platform for traders to work on the Forex markets, so the quality of the tools the trader has to work with will be part of the equation (the other being their own skill and judgement) that decides how much of the bacon they bring home.
In this scenario, if your trader is let down by their software, even to a relative extent compared to rivals, clients may notice how others are getting better returns via a different prop firm and consider taking their custom elsewhere.
The Opportunities Of Analytics
A good example of this is the use of data analytics. The development of software that can study data at scale is something a human may be able to match, but not at the same speed. The key is to spot patterns and indicators that show which way things are trending and then act. If you take a long time to do this, you may miss an opportunity that might soon vanish.
For example, it may be that the value of a particular currency starts to decline, with a range of different indicators bringing about a market reaction. By being able to absorb and analyse this information with the help of analytics tech, you can make informed judgements about trading transactions.
This situation may suddenly change, such as if a central bank intervenes to head off a potential crisis or a government finance minister dismisses speculation about a policy move that might impact the value of a currency. That could close the brief window in which a particular transaction might be particularly advantageous.
The Importance Of Data Security
Another key area your software must be able to deal with is data security. Cybercrime is a massive threat to any firm using IT and this situation has been exacerbated in recent years as malevolent individuals and organised criminals have been joined by rogue states.
Considering the amounts of money involved in the Forex industry, it is no surprise that prop firms should be an obvious target. Writing about this topic last year, IT security firm Cybaverse listed a range of threats that prop tech could face.
Many of these were familiar threats: Phishing emails that solicit sensitive information, denial-of-service (DoS) attacks that shut systems down, ransomware that steals data and demands payment for its return, insider threats and flaws in the Internet of Things tech.
All this, it noted, requires measures like firewalls, encryption technology and multi-factor organisation.
These points may not sound like anything particularly novel to anyone familiar with cyber security issues. But while many of the basic categories of threat remain similar, cybercriminals are always looking for new vulnerabilities and techniques to break through the defences they are up against.
For that reason, updating your security software is as important as any tech upgrade you can make; by protecting your systems, you can prevent the kind of calamity that stops you, your traders and – by extension – your clients from making money on the markets. This not only saves on direct costs, but avoids potential reputational damage.
For all these reasons, it is important to be constantly assessing your technology. That doesn’t necessarily mean you need to spend heavily and overhaul your entire system; you may have some tech that is bang up to date while other equipment is lagging behind, so in some cases, you might just need to change certain parts of your overall package.
The key is that by offering the best software, you will optimise the prospects for your traders and clients of making a success of trading operations, leveraging the best that tech can do to produce the greatest results.
