HFT (High Frequency Trading) Effects on Investors

10. Positive Impacts for the Long-term

Fortunately, not all is lost for retail investors when it comes to the use of high frequency trading. The methods used to trade ahead of the masses have a much harsher impact on individual investors who trade on a daily basis. Individuals who follow a long-term investment approach, including buy and hold investors, may actually benefit from high frequency trading in the long run. The increased liquidity of the stock market makes for broader access to various stock investments spanning multiple sectors and industries. That liquidity significant advantage to investors who put their money to work for the long-term.