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Retail Traders Get Algo Power Soon
4 Jun
Summary
- Major brokers to launch algorithmic trading tools for retail investors.
- Accessible algo strategies may cost as low as ₹5,000 per strategy.
- SEBI's revised framework for algo trading is fully implemented since April 2026.
Major brokers are gearing up to introduce algorithmic trading tools for retail investors in the next few months. This initiative benefits from recent regulatory clarity, aiming to expand broker revenue and enable fintech firms to scale by distributing their strategies.
These accessible algo strategies might be offered to retail clients for as little as ₹5,000 per strategy. Algorithmic trading uses computer programs to execute trades based on pre-set conditions like price or volume.
SEBI's updated framework for retail participation in algo trading has been fully implemented since April 2026. This framework mandates brokers to obtain exchange approval for each algo, tag orders for audits, and monitor APIs. Exchanges are also enhancing their supervision through testing and surveillance.
Several large brokers, including HDFC Securities and Motilal Oswal, already offer algos. Many others, such as Angel One, Upstox, and 5paisa, are in the process of launching similar services. This move is expected to increase adoption by retail customers, particularly those trading in derivatives.
