The Indian Forex market has continued to be under the dark ages for many decades as a result of market monopoly by the mainstream banks both privately and publicly owned by their intermediaries. The market control by these cartels led to the traditional Forex trading method which is characterized by lack of transparency, hidden costs, complex protocols and excessive fees. The first set of market movers moved into the Indian Forex market within the last five years faced the challenge and broke the trade barriers giving Forex market access to many including retail investors. This bold step taken by these Forex companies and brokers disrupted the previous system making a profitable and satisfactory foreign exchange trading in India possible.
Indian Forex market in 2017
The year 2017 provided flawless trading positions to Forex traders through increased transparency, the simplicity of Forex transactions, low cost of the operation and reliable trading platforms that made it possible for traders to monitor their trade and investments easily. Given the development of these fintech platforms, traders made more profits and businesses that needed foreign exchange for their transaction easily engaged in trade without hassles or limitations. Medical and educational tourism also boomed given the improvement of the Forex market.
2018 and Indian Forex Market
2018 is set to experience yet even more growth and development in the Forex market. The projected increase will be made possible given the high degree of a healthy and improved Forex network outfitted with contemporary practices, real-time results and better echelon of customer services.
The boost in India’s Forex reserves in 2017 made the Forex market attractive to vital worldwide economies as RBI forcefully purchased dollars counter the effects of the massive flow of the dollar. India’s foreign exchange reserves in Kolkata soared high to a fresh peak of 409.367 billion dollars with the extra addition of 4.445 billion dollars by the Reserve Bank of India towards the end of December 2017.
Although the Central Bank of India did not specify the rationale behind the weekly surge and decline of Forex reserves, Forex dealers are of the opinion that the rise is mainly as a result of alterations in the appraisal of Forex reserves held in other world currencies like the pound, euro, and Japanese yen.
Forex market in India is vigorously going to leverage on the present fintech revolution to develop fresh opportunities to boost trader’s experience. Stimulated by the market’s developments in 2017, 2018 will witness innovations to move the market forward. The upcoming trends will increase market awareness, trader’s satisfaction, and a more trusted Forex ecosystem.
Impact of technological innovations on the Forex market
The arrivals of new smartphone technologies will make it possible to execute trades on the go which will in-turn boost the trade volume. The creation of world class applications with many exclusive features such as:
- Currency alerts,
- Management of online trade risk
- Easy accessibility of research results
- Instant updates
- price verifications
- Real-time audits that assist traders to make quick transactions and minimize their cost and;
- the development of virtual customer assistants to boost profit and customer services.
Disruptive technologies and the Forex Market
The new trends in the use of disruptive technologies like Artificial Intelligence (AI), machine learning, the blockchain, cloud and much more will potentially lead to the transformation of the Forex market. It will lead to a shift from that conventional algorithm based systems of the sector to advanced techniques. These technologies will generate efficient systems and processes to routinely study, predict and make adjustments which make trading platforms more functional, seamless and result-oriented for traders use.
Development of efficient security structure
The rise in the use of online trading platforms and trading devices will lead to increasing demand for customizable security features and solutions. Smart intelligence, innovative apps and will make IoT trading platforms more secure and boost the trust of customers.
Robust technologically empowered platform
2018 will also experience an increasing degree of vibrant and improved Forex trading network featuring a lot of contemporary practices, real-time solutions and enhanced provision of customer services. The Forex market in India will come out in 2018 with improved efficiency, reliability and enhanced security because of innovations in disruptive technologies.
Conclusion: Indian Forex market and digital mainstream movement
With digital innovations moving mainstream, Forex trading businesses will significantly adjust their practices to move in line with the conventional methods in IoT, analytics, customer services, and data systems to realize their goal of developing a perfect online trading platform. These trends will give rise to an enhanced Forex market, trading excellence and profitability.