This lucrative market is based on advanced and interconnected technologies that let investors open and close multiple positions in real-time. These inventions are necessary for the market to work well or reach anything close to its current level of value.
Broadband cell phone network technology is one of the most important parts because it makes real-time trading possible in the age of online markets like Oanda. We’ll talk more about this below and how the 5G connection might change the forex market.
A Short Overview of Online and Mobile Trade
The only thing open 24 hours a day is the FX market, which trades in three different sessions. This makes it easy for investors to trade key currency pairs across different time zones and considers that most orders are now done online.
Since there isn’t a physical exchange, dealers must handle orders through a computer networked to the global market. Investors must now rely on a safe, stable, and fast network that lets them trade quickly across time zones and carry out orders in real time, making them the most money.
Network Technology’s Generations
Cellular internet networks are a big part of why more traders invest through mobile programs like MetaTrader 4 and 5. These networks work as Wi-Fi connections for mobile devices, and the fifth generation of this technology has recently become popular (more on below).
The latest version of 4G connectivity is better than the last one because it has faster download and upload speeds and less latency. So, it was thought to be much faster than 3G networks and a big step up from 2G, a new technology that made digital phone calls and text messages possible in the early 1990s.
The 4 greatest 5G stocks to keep an eye on in 2021
We look at a few 5G stocks that have to do with the creation and use of the 5G network, not their investment potential. You can use the information below as a guide to help you decide if stocks are right for you. Before investing, you should always do your research.
Qualcomm is a technology company with its headquarters in San Diego, California. They develop ideas for and make software and processors for wireless devices like cell phones. Qualcomm also makes and sells wireless technologies and has previously licensed different 3G and 4G technologies.
Qualcomm makes more money from licensing sales when there are more connected devices for 5G technologies. Last year, Apple and Qualcomm made a deal for Qualcomm to provide its chipset for several years. This solidified Qualcomm’s important role in 5G technology.
As 5G moves beyond mobile phones, Qualcomm sees a big opportunity. Its chips make it possible to connect everything from the Internet of Things devices to self-driving cars. Qualcomm is a successful company with a market capitalization of about $91 billion. Even after the Covid-19 crisis, Qualcomm has continued to pay dividends. The company has a good balance sheet and enough cash to weather storms and fund new ideas.
Ericsson is a Swedish company based in Stockholm that makes and sells technology and services for telecommunications. They offer services, software, and infrastructure for information and communication technology. They have a 27% market share in the infrastructure for 2G, 3G, and 4G mobile networks. Ericsson has a lot riding on the 5G revolution, which makes sense.
By February 2020, Ericsson will have signed 81 contracts for hardware and services that help telecom carriers update their networks to take advantage of 5G’s faster speeds. Ericsson works with 25 networks in addition to the partnerships. Ericsson is in a strong position when it comes to 5G. They were the first company to set up 5G networks on four continents, and they say they have the most 5G-compatible devices.
Ericsson is a successful company with a market value of about $29 billion. ERIC has also paid dividends fairly regularly and said that Covid-19 didn’t have much of an effect on its operating profits and cash flow during the first quarter of 2020. Ericsson could be at the front of the 5G revolution because of its strong position and foundations.
Nokia is a Finnish company based in Espoo that makes phones and other electronic goods. they says it has less than Ericsson and 67 5G contracts, and 19 live networks. Nokia’s market share outside of China is now about 27%, and the company says it has won all contracts bid on outside of China and 90% in China.
Nokia is a successful company with a market capitalization of about $24 billion and pays a high dividend in exchange for its position. Considering all these things, Nokia could be a good 5G stock to buy, even if it is not the market leader. Stocks against the market can be good investments because they sometimes do better than the market expects.
Verizon is a phone company that is based in New York City. Chose Ericsson to help it improve its core network to support 5G’s faster speeds and better communication methods.
they think that improvements to its cellular technology will help it make money in the future. Verizon is the biggest provider of wireless transmission services in the U.S. with a 35% market share and over $230 billion market value.
Verizon pays the biggest dividend on the list right now, and its earnings report after the March 2020 Coronavirus market crash showed how strong and reliable it is when things don’t go as planned. Based on the information above, the stock has a good chance of going up in value, especially if the 5G network is used in the future.
How Will 5G Affect the Forex Market?
Even though this technology is always improving, 4G isn’t much better than the previous version. The same can’t be said about 5G. which focuses mainly on data transportation and promises speeds 20 times faster than what we have now.
Of course, whether the MT4 and MT5 platforms need faster download or processing speeds to work better. The short answer is probably not because most traders only need a little bandwidth to do their jobs and can get by with 4G access.
But a 5G network might reduce the time it takes to ping servers. Making it faster for dealers to open and close positions. This will help elevated traders, who often work in very short amounts of time and handle many orders simultaneously.
Overall, 5G technology could cut ping time by 100ms to 10ms. This difference isn’t visible to the human eye, but it could give high-frequency traders a competitive edge.