This profitable market is based on advanced and integrated technologies that allow investors to open and close multiple positions in real time. These innovations are necessary for the market to function well or for anything to approach its current value.
Broadband cell phone network technology is one of the most important segments as it enables real-time trading in the era of online markets like Onda. We will talk more about this below and how 5G connection can change the forex market.
A brief overview of online and mobile trading
The only thing open 24 hours a day is the FX market, which trades in three different sessions. This makes it easier for investors to trade key currency pairs across different time zones and realize that most orders are now placed online.
Since there is no physical exchange, dealers must handle orders through networked computers in the global market. Investors must now rely on a secure, stable and fast network that allows them to trade quickly across time zones and execute orders in real time, allowing them to make more money.
Generations of network technology
Cellular internet networks are a big part of why more traders invest through mobile programs like MetaTrader 4 and 5. These networks act as Wi-Fi connections for mobile devices, and the fifth generation of this technology has recently become popular (more on that below).
The latest version of 4G connectivity is better than the last version as it has faster download and upload speed and less latency. Therefore, it was considered 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.
4 Greatest 5G Stocks to Watch in 2021
We look at a few 5G stocks that are concerned with the creation and deployment of 5G networks, 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
Qualcomm is a technology company headquartered in San Diego, California. They design and build ideas for software and processors for wireless devices such as mobile phones. Qualcomm also manufactures and sells wireless technologies and has previously licensed various 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 entered into an agreement for Qualcomm to supply its chipset for several years. This cemented Qualcomm’s leading role in 5G technology.
As 5G moves beyond mobile phones, Qualcomm sees a big opportunity. Its chips make it possible to connect everything from Internet of Things devices to self-driving cars. Qualcomm is a successful company with a market capitalization of around $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.
Erickson
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 of 2G, 3G, and 4G mobile networks. Ericsson has a lot riding on the 5G revolution, which makes sense.
As of February 2020, Ericsson will have signed 81 contracts for hardware and services that help telecom carriers update their networks to take advantage of the faster speeds of 5G. Ericsson works with 25 networks in addition to 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 say they have the most 5G-compatible devices.
Ericsson is a successful company with a market value of around $29 billion. ERIC has also paid dividends fairly and said that during the first quarter of 2020, Covid-19 did not have much impact on its operating profit and cash flow. Ericsson can be at the forefront of the 5G revolution due to its strong position. and foundations.
Nokia
Nokia is a Finnish company based in Espoo that manufactures phones and other electronic devices. It says it has fewer than Ericsson and 67 5G contracts, and 19 live networks. Nokia’s market share outside China is now about 27%, and the company says it has won all contract bids outside China and 90% in China.
Nokia is a successful company with a market capitalization of around $24 billion and pays a high dividend for its position. Considering all these things, Nokia could be a good 5G stock to buy, even if it is the market leader. Stocks against the market can be good investments because they sometimes perform better than the market expects.
Verizon Communications
Verizon is a phone company based in New York City. Choose Ericsson to help you optimize your core network to support the faster and better communication methods of 5G.
He believes that improvements in his cellular technology will help him make money in the future. Verizon is the largest provider of wireless transmission services in the US with a 35% market share and a market value of over $230 billion.
Verizon currently pays the biggest dividend on the list, 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 increasing in value, especially if the 5G network is used in the future.
How will 5G affect the Forex market?
Although this technology is always improving, 4G is not much better than the previous version. The same cannot be said about 5G. Which mainly focuses on data transfer and promises 20 times faster speed than what we have.
Of course, even MT4 and MT5 platforms require faster download or processing speeds to work better. The short answer is probably not because most merchants only need a small amount of bandwidth to do their jobs and can access 4G.
But a 5G network can reduce the time it takes to ping servers. Making it faster for dealers to open and close positions. This will help advanced traders, who often work in a short time frame and handle many orders simultaneously.
Overall, 5G technology can reduce ping time from 100ms to 10ms. This difference is invisible to the human eye, but it can give high-frequency traders a competitive edge.
