2 Things I Love About High-Frequency Trading

Updated

Today, Fool.com finance analyst Matt Koppenheffer reacts to a U.K. government report that high-frequency trading could be beneficial to the markets. This flies in the face of the negative press high-frequency trading has received recently following the Knight Capital meltdown.

Matt likes that high-frequency trading brings down the fees we pay as individual investors. He also likes the increased liquidity because it effectively reduces the spread, and therefore the costs, that we as individuals pay.

Secondly, as a fundamentals-focused investor, Matt thinks that human intuition gives him an advantage to pick up quality stocks on the cheap when the computers have missed something.


With so many of the big finance firms like Knight Capital getting bad press these days, it can be easy to miss the good things about them. But being jaded like that could be a huge mistake. In fact, some of the best opportunities over the next few years can be found there, including one small, under-the-radar bank. It's been called one of The Stocks Only the Smartest Investors Are Buying. You can learn about it, and more, in our exclusive free report. Just click here to keep reading.

The article 2 Things I Love About High-Frequency Trading originally appeared on Fool.com.

Anand Chokkavelu, Fool contributor Matt Koppenheffer, and The Motley Fool have no positions in the stocks mentioned above. Motley Fool newsletter services recommend Procter & Gamble. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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