White Paper

Algorithmic Trading: Pros and Cons


Algorithms have become such a common feature in the trading landscape that it is unthinkable for a broker not to offer them because that is what clients demand. Algorithmic trading, or computer-directed trading, cuts down transaction costs, and allows investment managers to take control of their own trading processes.

This paper discusses the key effect that the rise in use of algorithms has on the trading environment, fund managers, and buy-side traders, as well as on integration issues, build or not to build. The paper also discusses the emerging algorithmic trading trends.