HFT (High Frequency Trading) Effects on Investors

6. Added Cost to Investors

In addition to making ti more complicated – and expensive – to take a company public, high frequency trading makes it more expensive for retail investors to buy or sell, albeit indirectly. The added costs pushed on to pension plans and mutual funds necessary to keep up with high frequency trading tactics is almost always passed onto the investors who rely on pooled funds to gain access to the marketplace. This often comes by way of increased internal costs, like expense ratios and sales charges assessed on purchases or redemptions.