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How Robotic Process Automation (RPA) is Building the Next Generation of Forex Brokers

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Forex is the world’s biggest financial market in terms of daily trading volumes, so it makes sense that emerging technology contributes to making the landscape as frictionless as possible. With the development of Robotic Process Automation (RPA), we may be looking at a transformative tool for the industry on a number of levels. 

In terms of volume, nothing can beat forex. Global currency trading reached an astonishing peak of $7.5 trillion per day in 2022 and there’s been little sign of the industry slowing down since. 

However, the business of trading throughout global markets has been riddled with inefficiencies. Factors like changing market conditions, failing to identify opportunities fast enough, risk management, and emotional trading can all contribute to trading inefficiencies. However, RPA could soon make these costly drawbacks a thing of the past. 

According to Statista data, the RPA market is set to grow to a value of $81.8 billion by 2032, representing a CAGR of 36.6% during this timeframe. Such extraordinary growth will mean that the emerging technology’s evolution is set to disrupt a wide range of sectors. 

Additionally, a recent EY report suggested that RPA will help to decrease average operational run times for business processes by 76% by mitigating delivery risk, improving application integration, lowering costs, undertaking risk mitigation, enhancing security, and actively multitasking key operations. 

So how can RPA help to drive innovation in the world of forex? Let’s explore the technology on a deeper basis and take a more focused look at its FX use cases: 

What is RPA?

Robotic Process Automation has the power to automate repetitive tasks, helping users overcome the risks and time-consuming impact of undertaking these tasks themselves. 

RPA solutions can aid humans in undertaking more strategic tasks while improving the overall accuracy and efficiency of processes. 

There are many benefits to RPA, including greater efficiency, enhanced accuracy, and lower associated costs, due to the ability of the technology to mitigate instances of human error while performing tasks that free up human staff for other challenges. 

In the world of forex, we can already see robotic process automation making an impact on the burgeoning landscape of Expert Advisors (EAs), which actively monitor markets for emerging trends to capitalize on in a way that consistently outpaces human traders. 

Particular areas where RPA can excel in forex revolve around data entry, trade execution, and risk management. 

By automating these core processes within the industry, professional traders can save time and mitigate human error while focusing more resources on high-value activities like refining strategies, analyzing performance, and converting market insights into achieving their goals. 

As factors like regulatory changes, higher liquidity, and growing competition among institutions eat into the profit margins of professional forex traders, the utility of RPA becomes more essential. 

Alongside the time-saving advantages of EAs, we’re also seeing RPA adoption bring numerous efficiencies throughout the FX landscape for brokers. This is particularly true for the following industry areas: 

FX Price Optimization

Because of the fast-paced nature of forex markets, capitalizing on opportunities can require rapid decision-making that’s likely to be difficult for humans to master without the help of RPA. 

The challenge of identifying trends and acting on insights about price movements can result in unwanted slippage when executing trades unless institutions tap into the ability of technology to monitor big data for the perfect moment to strike. 

Robotic Process Automation has the ability to optimize prices when dealing with foreign exchange markets on a global scale. This means that trades can be executed in the most cost-effective manner regardless of whether the trade focuses on USD/EUR, USD/JPY, or USD/BRL, for instance. 

Crucially, the challenge for human traders to monitor markets for the best opportunity to execute a trade can often mean significant volumes of time wasted trawling exchanges and markets, while RPA has the ability to reconcile different market makers for real-time monitoring of rates. 

These processes are a crucial component of many Expert Advisors, but we can see the technology becoming more refined throughout global markets. For instance, one use case has seen an analytical platform utilize the Automation Anywhere RPA platform to create a process that digitizes the contents of email purchase orders and analyzes when a purchase needs to be procured in terms of the settlement date. The process then establishes an optimal exchange rate for the currencies concerned and actively monitors conditions to execute the conversion at the right moment. 

The emergence of RPA will have a major impact on CFD trading over the coming years, and with this in mind, it’s essential that professional traders ramp up their analysis of CFD brokers reviews to monitor the firms that are utilizing RPA in the most effective manner for their specific goals.  

Active Compliance Monitoring

Compliance can be a major sticking point for forex traders, and the regulatory climate is prone to changes and uneven implications throughout global markets that require real-time monitoring to keep on top of. 

By actively monitoring and analyzing contextual data throughout the internet and internal systems, RPA can help to ensure that institutions perform real-time compliance monitoring to deliver a more sustainable trading environment. 

For larger enterprises consisting of different trading desks, it’s possible to use RPA to quickly identify compliance deviations, anomalies, or any other unusual activity to undertake swift corrections. 

This can help leverage a greater degree of insight and control over compliance for institutions to facilitate better decision-making for faster trades in the future. 

Next-Generation Trading Experiences

Robotic Process Automation will bring more disruption to the forex landscape than just Expert Advisors and customer service chatbots. The technology has the potential to save institutional traders significant amounts of time and resources in identifying opportunities and actively monitoring compliance. 

With use cases already emerging throughout the industry, institutions yet to embrace the potential of RPA put themselves at risk of falling behind their rivals. The successful adoption of this emerging technology is likely to form the cornerstone of successful trading strategies throughout the highly lucrative FX market for years to come. 

Dmytro is a tech and crypto writer based in London. Founder of Solvid and Pridicto. His work has been published in IBM, TechRadar, Bitcoin.com, FXStreet, CoinCodex and CryptoSlate.