AI agents (Representative image)
Brokerages say they have introduced safeguards.
Angel Gutierrez, a full-time options trader, said: “I’m not in the moment wondering if I’m being too greedy. “AI takes risk, recommends a narrow set of assets, focuses on specific industries, and does not appear to exhibit better performance than passive benchmarks,” researchers wrote. “This could change the way people make money,” Edsman added.
It’s kind of like a software version of me with no emotions. However, researchers have raised concerns about how AI models approach investing. A working paper distributed by the National Bureau of Economic Research found that AI models tested for investment strategies recommended concentrated portfolios, highly valued stocks and companies receiving frequent media attention. Experts also warn that if many AI agents use similar data and strategies, they could make similar trades at the same time. This could increase market volatility. Robinhood, for example, keeps AI-managed portfolios in a separate account and sends notifications for every trade. But the approach remains relatively new, with its potential benefits and risks still being tested in real-world markets. Get the latest technology news and updates. Download the TOI App.
For investors experimenting with the technology, AI-powered trading offers a way to automate strategies that previously required constant monitoring.
McDonald estimates that agents could account for around 20% of the brokerage’s trading volume by the end of the year. Dean Ahrens, a 19-year-old investor and content creator, has used an OpenAI Codex agent for options trading. Ahrens said his account at Public grew from $3,000 to $8,000 over a few months. He also said one trade involving two options contracts tied to Micron Technology returned more than 500%.
Several brokerages, including Robinhood and Webull, have also introduced features that allow users to connect AI agents such as Anthropic’s Claude and OpenAI’s Codex to their brokerage accounts. The trading platform introduced agentic trading in April.
Investors such as Colin Edsman have claimed that this means AI agents can effectively manage parts of a portfolio without constant human supervision, according to a report by The Wall Street Journal. “It runs sort of like a hedge fund would,” Edsman told WSJ about his agentic trading portfolio, which is kept in a separate account from his other investments at Robinhood. An agent can be told to buy energy stocks when oil prices rise, sell an options contract after it reaches a specific return or monitor certain information for potential market signals. The agent analyses options flow data, identifies large trades and scores them against several criteria before selecting what Ahrens calls a “high-confidence trade”. “I’m thinking about how I can bring it into my overall portfolio,” he said.
AI agents are gradually taking on tasks once handled manually. Some American investors are reportedly using Claude and Codex to trade stocks and other financial assets. Once connected, these agents can analyse market data, identify opportunities and, in some cases, buy or sell assets on their own. Supporters see the technology as a way to automate sophisticated trading strategies, while researchers and market experts warn that handing investment decisions to AI could introduce new risks. Edsman has created a team of Claude agents to handle different parts of his investment strategy. One agent scans the market for stocks and exchange-traded funds, another reviews open positions, and a third prepares weekly performance reports. The trend is expanding beyond individual experiments. Brokerages are making it easier for customers to connect AI agents with their accounts and automate trading decisions. Professional traders have used algorithmic systems to analyse markets and execute trades for years. AI agents are now making similar capabilities accessible through simple written instructions. Neil McDonald, Moomoo’s US chief executive, described the shift this way: “These people are becoming mini hedge funds. “It’s nice to make money without having to lift a finger. One attraction of AI trading is that agents can make decisions without the emotions that can influence human investors.