Exploring Youth Perspectives on Algorithmic Trading: Knowledge, Trust, and Adoption

The increasing adoption of algorithmic trading has significantly transformed financial markets by enabling automated decision-making and high-speed trade execution. While institutional investors and hedge funds have widely embraced this technology, its understanding and acceptance among young retail investors, particularly those aged 18 to 25, remain relatively unexplored. As digital trading platforms and fintech innovations continue to gain popularity, assessing the awareness, perception, and preferences of youth regarding algorithmic trading is crucial. This study aims to examine the extent to which young investors are familiar with algorithmic trading, their perceptions of its advantages and risks, and their willingness to adopt it. This study quantitatively examines youth engagement with algorithmic trading, revealing low awareness, moderate trust, and key adoption factors such as transparency and cost. The study explores their level of awareness and primary sources of information, evaluates their trust in automated trading systems, concerns about fairness and risks, and identifies key factors influencing their decision to use algorithmic trading, such as cost, transparency, and control. The findings of this research offer valuable insights for fintech companies, trading platforms, financial educators, and policymakers, helping them design financial literacy programs and trading solutions tailored to the next generation of investors. As young traders continue to influence market trends, understanding their perspective on algorithmic trading will be essential in shaping the future of digital investing and automated financial systems.