Retail investors are increasingly using AI agents to research stocks, build custom trading systems, and execute market trades.
This shift marks a transition from manual portfolio management to automated financial decision-making. By leveraging large language models, individual traders can now perform complex tasks that were previously reserved for institutional hedge funds.
Investors are employing tools such as OpenAI’s ChatGPT and Anthropic’s Claude to monitor portfolios and rebalance holdings. These AI agents can also be used for tax-loss harvesting and the creation of personalized trading strategies [1, 2, 3].
Several platforms are integrating these capabilities to streamline the user experience. In the U.S., companies such as Public and Podium Markets are developing AI-driven services [1]. Similarly, Webull Malaysia has launched an OpenAPI to allow for more advanced AI integration [3].
These tools enable AI agents to trade continuously, operating 24/7 to capture market movements regardless of the investor's active presence [2]. The primary goal is to increase efficiency and discipline by removing the manual effort required to act on specific financial goals [2].
Despite the automation, financial experts said that technology does not remove the inherent dangers of the stock market. No system — whether it is self-built or professionally managed — can eliminate market risk or guarantee profits [4].
Retail traders are now utilizing "vibe-coded" AI trading bots, though this surge has led to increased concerns regarding risk management [4]. The ability to automate a trade does not ensure the trade is profitable, and users remain responsible for the losses incurred during market volatility [4].
“AI agents can trade continuously, operating 24/7 to capture market movements.”
The democratization of AI-driven trading tools lowers the barrier to entry for sophisticated strategies like tax-loss harvesting and algorithmic trading. However, the shift toward 24/7 automated execution may increase market volatility if retail agents react simultaneously to the same AI-generated signals, potentially decoupling stock prices from fundamental values.
