HFT and Retail Investors: How Fast Bots Affect Regular Traders! 👤💰
For retail investors and traders, HFT creates both advantages and challenges by July 2025:
Pros: Tighter spreads and increased liquidity can lead to lower transaction costs when executing orders.
Cons: Retail traders cannot compete with the speed of HFT firms, putting them at a disadvantage. There are concerns that HFT bots may 'hunt' their orders, especially large ones.
Volatility: HFT can amplify short-term price fluctuations, making it difficult for long-term investors or those who trade manually to make decisions. Understanding the role of HFT helps retail investors adapt their strategies and choose suitable tools and platforms.
