Financial Analysis : Financial Management Essay

Financial Analysis : Financial Management Essay

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Over history financial advisors have played a very important role in society by handling the money of all different types of people, rich or poor, through depressions as well as economic booms. These advisors help people retire and save for events in life that are expected as well as unexpected and are ingrained in a society with ever-changing wants and needs. However, what if the same services that a human financial advisor can be made so that they are cheaper to use and can better predict market volatility? Computer programming using financial market data and other sources like the news are trying to do just that. With the availability of data on the Internet and other database resources with financial decision making tools like Morningstar and Bloomberg companies are starting to move to a system that gives better results to their customers over time and helps their bottom line. There are two questions that will need to be answered to show that this is a viable option over time and those are: What are the advantages and disadvantages of using financial robots and what effect will financial robots have on the stock exchanges and the FOREX markets throughout the world?
Before talking about the advantages and disadvantages of financial robots it would be best to give an overview of where financial robots started and how they have gotten to where they are today. It all started in the 1970s when the Chicago Mercantile Exchange allowed large retail traders to auto trade contracts over computer systems. That system was the lone type of computerized auto trading software until 1999 when internet companies created the retail forex platforms that were dedicated to individuals. These computer systems let people instantaneously buy and sel...


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...th robo-advisors there is no need to meet with anyone because the portfolio is automatically allocated to your risk level every so often taking into account current market research and data. The traditional advisors have access to the same type of data that they robo-advisors have access to, however even with systems that help the traditional advisors analyze specific data there is a lot of human error that will most likely come from the data mining that the traditional advisors have to do to get the data. With the automated investment advisors, they are able to use their unique algorithms to make predictions based on a specific trend from fifty to one hundred years of data. This much data would not be easy for a traditional investment advisor to handle because of the sheer amount and validity of the data that was pulled by the advisor within their specific platform.

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Financial Analysis : Financial Management Essay

- Over history financial advisors have played a very important role in society by handling the money of all different types of people, rich or poor, through depressions as well as economic booms. These advisors help people retire and save for events in life that are expected as well as unexpected and are ingrained in a society with ever-changing wants and needs. However, what if the same services that a human financial advisor can be made so that they are cheaper to use and can better predict market volatility....   [tags: Investment, Finance, Financial adviser]

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