Trading Without Borders? How Design and Infrastructure Are Redefining 'Distance'

There’s a general belief that the internet is a borderless world in which your location doesn’t matter. Some even claim that it’s the internet that ‘killed geography.’ However, that is only true to a certain extent. 

Let’s take global finance as an example. Borderless trading is now possible, but it’s not without limitations. Furthermore, the evolution of technology and trading platforms has changed the rules of the game. Geography is coming back in the form of regulations, latency, and platform design. It makes things a bit more complex. You can access borderless trading from Africa to Asia. However, some regions might have access to lower latency and better infrastructure, which creates ‘digital distance.’ In this guide, we’ll discuss what this means from the perspective of a trader.

What Do We Mean by ‘User-Centric’ Trading Platforms?

For a long time, only institutional investors have had access to advanced tools and information. They’ve had the best software and most complex APIs, giving the financial elite a huge advantage over individual users. 

However, the development of online trading platforms changed all that. Operators like IQCent now offer a huge range of markets and useful features. These include customizable options like custom notifications and advanced dashboards. Apart from that, users can look forward to acceptable minimum trades, around-the-clock customer support, and a beginner-friendly interface.

New users can access many educational resources to help them with the trading process. Experienced traders appreciate more options for withdrawals and faster transaction confirmation. The entire goal is to improve trust and accessibility. The problem is that online trading platforms might still not be accessible from everywhere, depending on regulation and other factors.

Latency Isn’t Just About Speed — It’s About Where You Are

The term latency refers to how much time the information takes from the moment you submit it until it reaches the server. It might sound like a technical issue, but you can factor in geography, and here is how. If the data server is far from your current location, it takes more time for the data to reach it. Different countries have different internet infrastructures, which can also affect the total travel time.

If you trade at high frequencies, each millisecond matters and can affect potential profit. It’s similar for individual investors. Traders in regions with an underdeveloped internet infrastructure may experience longer delays in order execution. Some countries might have their requests routed via other countries, which increases the total round-trip duration. A cloud-based system helps partially iron out these issues, but some differences are still noticeable.

Regulation and Licensing Are Drawing New Trading Borders

Apart from your physical location and proximity to the server, it’s also necessary to consider the regulations in your area. For starters, online trading or specific markets and platforms might be banned in your area. China banned trading and mining cryptocurrency, while some countries also have strict regulations for all types of web-based trading. 

Demanding regulation and licensing rules also pose challenges for online trading platforms. It’s why many give up on offering their services in certain countries, or they restrict the available offer significantly. The features users can access might depend on the region. In some areas, extensive verification might be necessary to request a withdrawal. The process might not be as demanding in other countries.

That brings us to the Know Your Customer program. Many governments require online trading platforms to impose these standards to minimise the risk of fraud and money laundering. KYC requirements might need you to confirm your identity and payment method, as well as provide proof of address by uploading relevant documents. 

Here’s what that brings us to in practice. Let’s say there are two users of the same platform, one from Zambia and the other from France. They theoretically use the same website, but they might have different risk models and features available. The main reason behind that is geography and the fact that they access the site from different locations.

Why Interface Design Can Still Reflect Geographical Bias

The interface also has a direct connection to digital geographical bias. Let’s say that a user only speaks their native language and is from a small country. They could access an online trading platform in English or several other languages. However, none of them might be understandable. That leads to the user interface not being as trader-friendly for these users. 

It often happens that a platform primarily focuses on English. Other translations might be poor and not consider cultural nuances and symbolism. Some websites even release features and updates primarily in English. Some users turn to third-party solutions to close the gaps and acquire the information they need. 

Another thing to consider is market hours. Some markets don’t operate 24/7, and they might work to suit the needs of a specific time zone. For example, the priority could be users from the United States or Europe. As such, traders from Australia need to be awake in the middle of the night to make moves in this market. It’s similar for time-sensitive alerts. If it’s early morning in Miami, it’s late at night in New Delhi. Fortunately, there are ways to customise these notifications. 

When Geography Doesn’t Matter Anymore

While geography plays an important role in online trading, there are areas where it becomes irrelevant. For example, crypto markets are available 24/7 regardless of location. Also, decentralised finance apps generally offer the same features for all users. Finally, you can use APIs to receive information that isn’t defined by location. 

If you consider PancakeSwap, Uniswap, or similar decentralised exchanges, you know they don’t have a central authority. That means no authorities to impose location-based limitations.

What the New Geography of Trading Means for Users

It’s not that the internet eliminated geography, but rather transformed it. Instead of physical distance, we are now considering the digital one. 

Latency, platform design, regulations, and infrastructure are all components that affect digital distance. It’s important to understand these so that you can find the best possible strategy for your trading endeavours. Online trading platforms are looking for ways to maximise inclusivity, but we are still a long way from achieving the ideal image of ‘trading without borders.’