How Big Data and Predictive Analytics Can Help Forex Brokers


Big data and predictive analytics has a significant role to play in terms of helping forex brokers, traders and investors. If utilised correctly, it can contribute to better decision making, improved efficiency and a reduction in risk.


How predictive analytics can be used for trading?

Before you can use them, you need to know what predictive analytics is. Essentially, they are the use of statistics and modeling to determine future performance. When it comes to forex trading, that means using analytics to find patterns and using that data to inform your trading decisions.

How is big data used for predictive analytics?

Big Data is group of technologies. It is a collection of huge data which is multiplying continuously. Predictive analytics is the process by which raw data is first processed into structured data and then patterns are identified to predict future events.

How is big data used in trading?

Financial services, in particular, have widely adopted big data analytics to inform better investment decisions with consistent returns. In conjunction with big data, algorithmic trading uses vast historical data with complex mathematical models to maximize portfolio returns.

What is the best analysis for forex trading?

Here are the top 10 forex indicators that every trader should know:Moving Average (MA) … Bollinger Bands. … Average True Range (ATR) … Moving average convergence/divergence or MACD. … Fibonacci. … Relative Strength Index (RSI) … Pivot Point. … Stochastic.More items…

What are the benefits of predictive analytics?

Benefits of Predictive AnalyticsGain a competitive advantage.Find new revenue opportunities.Improve fraud detection.Optimize processes and performance.Increase asset utilization.Improve production capacity and quality.Improve collaboration and control.Reduce risks.

What is the purpose of predictive analytics?

Predictive analytics is the use of data to predict future trends and events. It uses historical data to forecast potential scenarios that can help drive strategic decisions.

How does big data help with finance?

Financial firms now have the ability to leverage big data for use cases such as generating new revenue streams through data-driven offers, delivering personalized recommendations to customers, creating more efficiency to drive competitive advantages, and providing strengthened security and better services to customers.

How does data science help in trading?

Data Science helps to obtain profits and become an easy platform to perform trading. The analytics by Data Science, powered by Artificial Intelligence, shows the number that might help profit. The technology tries to bring accurate outcomes and make users work effortlessly.

What is big data analytics?

Big data analytics is the use of advanced analytic techniques against very large, diverse data sets that include structured, semi-structured and unstructured data, from different sources, and in different sizes from terabytes to zettabytes.

What are the 3 types of analysis in forex?

We have already studied that there are three types of analysis methods.Technical analysis.Fundamental analysis.Sentiment analysis.

How do you predict trends in forex?

Identifying trends to predict forexMoving averages: this is one of the most widely used tools used to find trends in the forex market. … Moving average convergence divergence (MACD): this takes the moving average over a short timeframe and an average over a longer timeframe.

Does technical analysis work on forex?

Foreign exchange markets are particularly well suited to using technical analysis. The high levels of liquidity in terms of trading volumes and number of players, and sensitivity to big long-term national level trends, means that forex markets tend to trend over time and patterns often have the chance to fully develop.

How does big data help forex brokers?

Big data can help brokers advertise their services in a better way. Without large data, there will be not enough convincing proof for the forex traders to join the broker’s platform. When the brokers advertise their service to the traders, they can present large data of profitable trades and time in history where a large number of traders have made huge profits with this broker. Advertisement is the key to profitable forex broker services. If you advertise correctly, you have a better chance of attracting more traders to join your platform.

Why do brokers use big data?

Many brokers who rely on big data have a better chance of saving their traders from taking extremely dangerous trades. Sometimes there is a crisis in the market and any trader who enters the market at that time has a risk of losing all his investment. By using Big Data Analytics, Forex broker can estimate the crisis in advance so they can inform the traders about the risk. Most of the brokers will give high volatility warnings in advance to protect their traders from losing all investment.

Why do forex brokers need to trade?

Forex brokers need the traders to trade the forex market continuously so the brokers can run the service successfully. When the traders lose a trade, they stop trading because they lose hope. This way brokers can lose the traders and lower the retention of traders. Big data can prevent this from happening. Even when the trader loses a trade, they will not lose their interest in forex trading because they can see how the market performed during previous years. They can focus on the fundamental and technical analysis results for previous data. This can increase the retention of the forex traders so this will improve the profitability of the forex brokers.

Is forex market data limited to currency pairs?

The forex market data is not limited to currency pairs only. When we are talking about the perspective of brokers, we also need to consider the big data for the broker’s performance. Brokers can check the performance of the other broker services and estimate the amount of profit they can get by providing this service. The market is not always the same but predicting the market will become easy when the brokers have large data. The forex brokers can decide which currency pair should be allowed to trade on their platform and which type of traders are best for their services.

Forex Data Analysis

More and more investors are looking into forex trading, as technological advancements make it easier and easier to do so. It may be easier to get started, but there’s still a lot of data to sift through if you’re going to find success. One of the ways to succeed in forex is to use predictive analytics and big data to do so. Here’s how.

What Are Predictive Analytics?

Before you can use them, you need to know what predictive analytics is. Essentially, they are the use of statistics and modeling to determine future performance. When it comes to forex trading, that means using analytics to find patterns and using that data to inform your trading decisions.

Make A Plan

Before you even start thinking about using data and analytics, you need to have a plan for your forex trading. Everyone has different goals, so you need to have a good understanding of what you want to do before you go any further.

Be Aware Of The Difference Between Day Trading And Long Term Investing

There are two main ways you can get into forex trading: day trading and long term trading. The one you pick will depend on what you want to get out of the practice.

Develop A Long Term Trading Strategy

Before you get started trading, it’s important to have a strategy in place. This will allow you to get the best asset allocation, allowing you to profit.

Use The Benefits Of Analysis To Your Advantage

There are several benefits to predictive analysis that you can use to your advantage. Here’s what you need to know about it before you get started:

Forex Big Data Bottom Line

There’s a lot you need to take into consideration when it comes to forex trading. Predictive analysis will help you take fewer risks and build profit, so it’s something that you should be using when trading.

Is data gathering good?

Data-gathering tools aren’t perfect. Also, you have to consider the fact that gathered data can only be as useful as how they are analyzed. Regardless of these limitations, big data has proven to be immensely helpful in predicting future patterns of behavior in the foreign exchange market.

Is predictive trading still a part of the digital era?

The digital era is largely powered by data. Despite its limitations, predictive models can still offer traders, brokers, and researchers an advantage by providing real-time information that assists in making informed trading decisions. But it’s best to master the ins and outs of the market instead of exclusively relying on modern tools in order to beat the limitations of the data.

Big Data gives traders access to a safe and informed trading environment

There are two factors that go into a successful trade. First of all, you need to have at least basic knowledge of the financial and currency markets in order to forecast trends. And second, you need to grow the so-called ?trader?s instinct?.

Cutting-edge opportunities for brokers

When relocating, many traders try to find forex brokers in offshore countries, only to discover that their favorite broker is not available abroad and that finding another one is very complicated. Most of the time, these situations happen because Forex brokers have to comply with a complex and stringent regulatory environment.


Widescale implementation of Big Data features would enable brokers to create holistic experiences for their users and, in time, this will lead to the development of a trust-based ecosystem. In any field it enters, Big Data boosts transparency and accelerates business growth.


Provides Quick Answers

  • Brokers on the foreign exchange market, and through them the financial institutions, are not investors. Their purpose is to assist international trade by providing currency conversions. However, these numerous conversions can also turn a sizable profit. A broker can obtain and ho…

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Removes Some of The Dangers of Trading

  • Aside from registering a financial event, like the buying of a company by another or the bankruptcy of a private retirement fund, Big Data also records everything that goes on in the market before, during and after that moment. This serves as a powerful database that can be studied, analyzed and integrated into future expected patterns of behavior in the exchange market. As a result, tra…

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Prevents Panic-Driven Crises

  • Despite the advanced data-gathering tools and sophisticated methods of analyzing it, the shot-callers of the Forex market remain human and thus subjected to the irrational. Predictive models fall into two categories – classification and regression models. Dealing with numbers and predictions, the second model is the one used in the predictive analysis. Moreover, regression e…

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  • Data is the unnoticed blood of modern society. It directs the functioning, resource attribution, and prevalence of issues in society. Access to it and knowledge to wield it can mean the difference between resounding success or crushing bankruptcy for companies and institutions regardless of size. However, as data has its limitations, the predictive models are anything but infallible. One o…

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