How AI Is Utilised In The Algorithmic Trading Sector

Why are savers choosing automated AI software to grow their money instead of traditional savings accounts?

Interest rates are now at an all time low and all that money you may have sitting in your savings account is no longer working for you!

Interest rates have been completely cut around the world, with many banks lowering rates to less than 1%. It's now left many savers pondering what they should now do with their money and what they can do to best grow their savings.

Considering banks are now paying people less than the rate of inflation it’s no wonder why so many are becoming fed up (and rightfully so) with leaving their money in a savings account.

With all that frustration many now have with their banks, there must be another viable solution that savers can use, right? 

The rise of alternative investment solutions

Fortunately, there now is. Thanks to technological advancements various companies have started to leverage AI and algorithms to help increase returns for clients. Some examples of this include services robo-advisors and computerised trading strategies.

These alternative investment solutions have only been around for the last 10 years or so, but they are becoming very popular solutions among savers.

These types of investment vehicles use computer algorithms and advanced AI software to build and manage your investment portfolio. Leveraging AI and algorithms means that it requires little to no human interaction, which makes it the perfect passive investment, due to it requiring little time and effort from the investment provider and you, the saver. However, even if you prefer that human touch there are many providers who have advisors to support you and answer any of your questions.

The biggest benefit of using such services over savings accounts is they generally produce far larger returns over the long term. Most robo-advisors provide average returns of 8-12% a year. A significant increase on the extremely low interest you receive from a saving account. 

8topuz - A leader in AI Investing 

One of the leaders in this AI investing space is the award-winning 8topuz. They use an AI automated risk managed system, that is designed to effectively produce a consistent audited ROI of 3-4% per month by utilizing the vast FX trading market. Their software provides a significant increase on the returns that even most robo-advisors provide.The great thing about their software is that it allows non-traders without much knowledge of the financial markets to tap into the power of the 8topuz AI system and benefit from their machine learned risk management algorithms.

If you are still left confused by exactly how their system works they essentially work very much like a team of highly skilled traders with the machine learned neural network recognising historical and future patterns and making lighting fast decisions based on market conditions.

Should you stop using your savings account?

You don’t have to stop using your savings account, but it’s certainly not advisable to have a large amount of money just sitting there. If you decide to keep all your money in a savings account not only will you be losing out to inflation, but you’ll never be able to make your money work for you. 

By using investment vehicles that provide higher returns your savings can further benefit from compound interest, which is essentially where you earn on interest. Compound interest is one of the key ways to build a big savings pot. If you always earn low interest rates on your savings then you’ll struggle to ever compound a large amount of money. This is why it’s so essential to now use alternative investment solutions that provide higher returns.

However, it is advisable to always hold a small amount of money (less than $50,000) in a savings account as you don’t want all your money completely tied up in investments. You’ll need some money that is easily liquid and can be converted to cash quickly in case you ever encounter any emergency situations such as losing your job or to be able to cover a major medical bill.

Also with all the financial catastrophes and bank collapses we’ve seen around the world where many have lost their savings, it just goes to show that having a significant amount of money in the bank is never safe. 

In closing

If you’re someone who has all their money lying in a savings account then you should certainly evaluate whether this is the correct decision. Robo-advisors and AI investing solutions appear to be the way of the future and the ones who carry on sticking to their savings account will forever struggle to build up their wealth.