How Far Trading Technology Has Come
It’s hard to believe that just a few decades ago, the only way to trade stocks was through a human broker. You would have to call them on the phone, give them your order, and then wait for them to execute it. Today, computers do most of that work automatically, just like in immediate edge. With that as the premise, let’s look back at the history of stock trading technology and how it has evolved over time.
1960s Wallstreet
Everything is much simpler in the 60s. Stocks were bought in person on the floor of the Exchange, with a broker representing the buyer and another representing the seller. The price was set based on supply and demand, which the brokers would shout out. This system is called an open outcry auction.
1970s Stock Ticker
The 70s saw the advent of the stock ticker, which automated the process of printing out stock prices. This was a significant improvement, as it saved a lot of time and effort. It also allowed people to track stock prices more easily.
1980s Quotron
You might notice how the 80s are filled with Yuppies running Wallstreet with slick back hair and nice expensive suits. But what we should highlight here is how the 80s saw the introduction of Quotron, an electronic system that provided real-time quotes for stocks. The technology in the 80s was a far cry from what we have today, but it was a big step forward at the time.
1990s ECNs
The 90s saw the rise of electronic communications networks (ECNs) used to trade stocks electronically. This was a big improvement over the old system, as it allowed for much faster execution of trades. ECNs also paved the way for the development of online stock trading.
2000s Online Stock Trading
The 2000s saw the rise of online stock trading, which has become the norm today. Online stock trading platforms like eTrade and TD Ameritrade have made it possible for anyone to trade stocks from the comfort of their own home. Making it a popular choice of trading, although not everyone is entirely on board with it.
2010s Algorithmic Trading
The 2010s have seen the rise of algorithmic trading, which is a form of trading that uses computers to execute trades automatically. This has made stock trading much more efficient and reduced human brokers’ needs.
2020s Robots
The 2020s have seen the rise of artificial intelligence (AI) in stock trading. AI-based stock trading platforms like Robinhood and Acorns have made it possible for people to trade stocks without any human intervention. This has made stock trading much more efficient and has reduced the need for human brokers even further.
Looking back, it’s amazing to see how far stock trading technology has come. From the early days of human brokers to the modern era of AI-based stock trading, the evolution of the stock market has been nothing short of amazing. Who knows what the future will hold for stock trading? One thing is for sure, …
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