Analysis: AI-powered trading agents may end high-frequency trading and provide fair incentives for retail investors.

CoinFeed reported on May 31st, citing CoinDesk, that the entry of AI trading agents into the financial markets is potentially transforming the structural problems of retail trading. Current business models of exchanges and brokerages rely on frequent client trading, profiting from commissions, spreads, and order flow regardless of profit or loss. Research shows that 74% to 89% of retail traders ultimately lose money, and the Pay-for-Order-Flow (PFOF) mechanism behind zero-commission trading decouples platform profits from client returns. Independent, programmable AI trading agents can change this structural contradiction: by linking agent earnings to client portfolio returns, they encourage disciplined trading rather than trading frequency. Agents can choose to reduce position sizes, avoid impulsive actions, and protect client assets in highly volatile markets, achieving true alignment of interests.