AI Trading Agents May Alter Retail Trading Dynamics

AI trading agents are entering the financial market, potentially impacting the structural issues of retail trading. According to Odaily, current business models of exchanges and brokers rely on frequent client trading, generating profits through commissions, spreads, and order flow. Research indicates that 74% to 89% of retail traders incur losses, with zero-commission trading's payment for order flow mechanism disconnecting platform profits from client gains. Independent, programmable AI trading agents could align their earnings with client portfolio returns, promoting disciplined trading over frequency. These agents may also align interests by reducing positions, avoiding impulsive actions, and protecting client assets in volatile markets.