AI trading software encompass everything from hands-off robo advisors to news aggregation, and everyone’s doing it. These tools fall into 4 categories: (1) robo advisors (via broker), (2) research automation, (3) alert assistance, and (4) alert execution. Beginners only need the first; everyone else needs one of each.
To choose the right one, you must determine the best functions for your strategy, level of involvement, and trade volume. But don’t worry, this will come naturally as we cover 14 best options and our top 4 picks.
Best Robo Advisor
(Robo Advisory)
AI: Fully Automated Investing
Price: $3 subscription
Best Trade Executor
(Alert Execution)
AI: Automated Trade Execution
Price: $1.22/trade
Best Technical Analysis
(Alert Assistance)
AI: Automated alerts
Price: $35/month
Choosing an AI-enhanced trading tool is no cakewalk. Do you want help with research and tracking opportunities, or just a robot that handles everything from A-Z?
There’s also a bunch of tools you probably never heard of. Maybe they could give you an edge?
I felt the same way, and the only real way to make a good choice is scouring every search engine, forum, and AI aggregator out there. So that’s what I did, and it took me about 14 hours. Then I tested 50+ options and condensed the list to 13 options, plus 10 alternatives.
Each option is rated based on the following criteria:
- Importance of AI feature
- Quality of AI feature
- Securities covered (i.e stocks, options, forex, etc.)
- Popularity percentile within the peer group
- Customer Support
- Price
What’s the best AI trading software?
Here are our top picks. See the comparative table here.
| Name | Rating (of 10) | Best for… |
|---|---|---|
| Acorns Read review → | 9.40 | Brokerage Robo Advisory |
| Signal Stack Read review → | 9.09 | Trade Executor |
| Tickeron Read review → | 9.06 | Statistics |
| TrendSpider Read review → | 8.95 | Technical Analysis |
| BlackBoxStocks Read review → | 8.85 | Community |
| Forex Fury Read review → | 8.76 | Forex ($ € £ ¥) |
| Trade Ideas Read review → | 8.61 | Money Managers |
| Capitalise.ai Read review → | 8.58 | Free |
| EquBot Read review → | 8.53 | Portfolio as a Service (PaaS) |
| Kensho NERD Read review → | 8.44 | Alt Data for Funds |
| Acuity Read review → | 8.38 | Alt Data for Traders |
| 3Commas Read review → | 8.33 | Crypto (₿ Ξ ₮ ₳) |
| Optionsai.com Read review → | 8.27 | Options |
| Kavout Read review → | 8.25 | Equity Research |
Best Brokerage with Robo Advisory
My Take
Updated November 2023
Everyone needs a robo advisor. We originally recommended TD Ameritrade, but Acorns has surpassed it in value. I’ve been using Acorns for years and have had strong performance with it with little complaint.
There are tons of brokerage investment apps, but Acorns is probably the best option for AI pioneers. They marketed themselves as a way to invest spare change, but the real value behind the app is AI-driven automated training run entirely by bots.
The one downside? I has a small monthly fee. Most people pay this with the growth of their portfolio.
| Category | AI Feature | Price (Monthly) |
| Robo Advisory | Fully Automated Investing | $3.00 subscription |
Our rating: 9.40 / 10
Securities Coverage
ETFs.
Acorns keeps it simple and secure with ETF-only investing.
Popularity & Customer Support
Percentile Popularity: 100%.
It’s no surprise that Acorns ranks top on our list. They’ve been around for several years and have a strong reputation.
TrustPilot Customer Support: Excellent
What I Like & Dislike
Like
- The robo advisor service combined with dollar cost averaging technique are a long-term investing strategy with high chances of success
- Good degree of flexibility over portfolio constructions (via ETFs)
Dislike
- There are embedded, wrap fees with ETF that nobody can explain precisely (even in the prospectuses)
- Though diversified, robo investing does carry risk of swinging with the market
Bottom Line
So basically what we’re saying is Acorns is the best way to go for a simple robo advisor you can “set and forget.” Combined with active signaling and trade execution solutions, you’ll have a cockpit of AI tools.
Best Trade Executor (Broker Order Router)
My Take
Signal Stack is the only trade executor on our list. Basically what this means is it transfers signals that alert-assistant platforms like TrendSpider pick up, then executes the trade in your brokerage account (such as TD Ameritrade). It’s a must for any investor who wants to integrate screeners and brokers.
The pricing is dynamic (see customer support below), but you pay a fixed fee for each trade execution, called a signal.
| Category | AI Feature | Price (Monthly) |
| Alert to Execution | Screening to Executing | $1.22 avg. per signal |
Our rating: 9.09 / 10
Securities Coverage
All (Stocks, Bonds, ETFs, Mutual Funds, Options, Futures, Forex).
Since it needs to transfer orders for execution, Signal Stack has to handle any kind of order.
Popularity & Customer Support
Percentile Popularity: 18%.
At only the 18th percentile, Signal Stack is still in a growth stage within the peer group.
TrustPilot Customer Support: Average.
Signal Stack isn’t showing up on TrustPilot yet because it’s relatively new, so we have to assume its customer service is average. However, I have a hunch it’s going to be strong. Since they’re the only intermediary service provider, you would be hard pressed to do better.
What I Like & Dislike
Like
- Only solution to link to your brokerage account from a screener/chart tool for order execution
- Built directly on the backbone of TrendSpider
- Provides an “automated” investing option within an active investing workflow
Dislike
- As on April 2023 the bots are still in beta and may have some issues
- Automated execution requires your signals are configured with a high-degree of precision, lest they produce unwanted trades
Bottom Line
Capture alerts and convert them directly into trades with Signal Stack — the only broker order router for any screening app and any broker.
Best for Statistics
OK, we’re traders after all, what do we really want to see from these AI bots?
Statistics.
Tickeron is an alert assistance tool like many others, but it has very thorough stats around its bots’ performance. It’s convenient because you can almost see the bot like a copy trader and pick and choose its strategies based on your personal preferences.
| Category | AI Feature | Price (Monthly) |
| Alert Assistance | Signals, Stats, and Predictions | $180 |
Our rating: 9.06 / 10
Securities Coverage
Stocks, Crypto, Forex.
You only get three security types with Tickeron, which is the main reason we rank it in the middle.
Popularity & Customer Support
Percentile Popularity: 86%.
Tickeron has been around for awhile, so it’s quite popular with traders. I suspect this is linked to its transparency with bot performance statistics.
TrustPilot Customer Support: Average.
Despite its popularity, Tickeron doesn’t have an active review community. It’s probably a good sign because no reviews usually means everyone is happy.
What I Like & Dislike
Like
- Trading signals are above average timely and accurate
- Educational resources and community are strong, so you can get a wider experience from the platform
- 1-on-1 training available for you to learn the platform
Dislike
- Relatively weak user interface compared to other screener sites
- Little AI bot customizability, with bot performance being shared amongst all investors
- $180/month is a bit pricey, unless you’re committed to following bots whole-heartedly
Bottom Line
With advanced transparency on bot trading performance via thorough statistics, Tickeron’s AI has proven itself trustworthy. That said, because of the transparency, the price is steeper than alternatives and you may find other investors piggybacking on the same bots.
Best for Technical Analysis
My Take
I hesitated with TrendSpider originally because it felt a bit overkill. It supports all kinds of charts and trend analysis to the point where there may be too much, but that’s usually a good thing for advanced users who like the flexibility.
It offers scanners to automate stock tracking, a sandbox to create and backtest strategies, and of course AI-enhanced alerts to help you stay on top of buy/sell opportunities.
Sound a lot like most trading tools? Well most others like TradingView don’t AI-driven data recognition and alerts. Plus, TrendSpider integrates seamlessly with Signal Stack because they are the developer.
| Category | AI Feature | Price (Monthly) |
| Alert Assistance | Automated Alerts & Pattern Recog | $35/month |
Our rating: 8.95 / 10
Securities Coverage
TrendSpider supports Stocks, Crypto, Forex, Futures, Indeces.
To be fair, theses are the only securities that really work with AI. Mutual Funds and ETFs just don’t have the administrative skeleton or volatility required for bots to work their magic. You might as well just open a standard broker account.
Popularity & Customer Support
Percentile Popularity: 91%.
TrendSpider is one of the bigger players out their, with only 10% of the cohort garnering more traffic.
TrustPilot Customer Support: Average.
Customers have complained that TrendSpider is very strict with its 7-day free trial, which boots you the moment you end the subscription and required a few bucks to get a live data feed.
What I Like & Dislike
Like
- One of the largest technical analysis offerings
- All of the securities you could want or need
- Strong community to brainstorm and keep up to data on news
Dislike
- Not ideal for new traders who want a bare-bones solution just to get used to technical analysis
- Minimal focus on fundamental analysis, so any Benjamin Graham followers will lack resources
Bottom Line
TrendSpider is the most extensively equipped technical analysis chart and AI-alert tool. Advanced traders will have a hard time finding more options in one place.
Best for Options
BlackBoxStocks is the best AI software for community because its chat feature is front and center and easy to access. That may not sound like much but every platform has to pick and choose primary features, and BlackBox goes with chat.
The choice speaks volumes to how BlackBox organizes itself. Very easy to use, and a simple interface.
| Category | AI Feature | Price (Monthly) |
| Research | Automated Alerts | $99.97 |
Our rating: 8.85 / 10
Securities Coverage
Stocks, Options.
Only two securities are available, stocks and their derivative options.
Popularity & Customer Support
Percentile Popularity: 55%
Due to its focus on stocks and options only, BlackBox is slightly less popular than other screening platforms, placed at only 55% in percentile popularity.
TrustPilot Customer Support: Average.
As with many high quality interfaces, support isn’t usually critical because the platform works by itself. Some users have run into issues, however, and the support was not tier 1.
What I Like & Dislike
Like
- Strong user interface
- Community of traders sharing strategies in trades in real time
- Strong technical analysis tools available through a single terminal
Dislike
- At $99.97 per month, BlackBoxStocks is priced higher than 80% of others on our list
- Alert customization can create a faux sense of urgency and is not appropriate for brand new traders
- Interface comes “as is” and allows little adjustments
Bottom Line
Empower your trades with a team of traders using BlackBoxStocks’ community feature that seamlessly integrates into the trading terminal, making it the best choice for those who want to keep up to speed on what’s happening in the market with a grass roots approach.
Best for Forex
The name says it all, but don’t judge too quickly because Forex Fury is not your average trading platform. It’s a one-time payment membership to use a Forex Fury’s bot on MetaTrader’s 4 or 5 gen platform. MetaTrader isn’t on our list so you’ll need to get it separately, but it’s free, don’t worry.
| Category | AI Feature | Price (Monthly) |
| Alert Assistance | AI Trade Picking | $299 (one-time) |
Our rating: 8.76 / 10
Securities Coverage
Forex.
No surprise here. Forex Fury is a bot for trading currencies and nothing else.
Popularity & Customer Support
Percentile Popularity: 45%.
Given that it only trades one type of security, a 45% popularity percentile suggests high quality.
TrustPilot Customer Support: Great.
Though run by a small team, Forex Fury has strong customer support and rarely has problems to begin with.
What I Like & Dislike
Like
- Strong track record of backtracking results
- Can handle many currency pairs
- Accessible on MetaTrader, a free platform
- Complete automation at a one-time price
Dislike
- The sales page is slightly aggressive on profit results, stating a 93% winning track record, but not how much this is worth in absolute
- Not “completely” automatic as you need to monitor its progress to ensure alignment with your personal strategy
Bottom Line
Forex Fury is a one-time membership payment for access to an FX bot that works on MetaTrader, and there’s no better option for FX on our list.
Best for Money Managers
Handle a small portfolio of clients money with Trade Ideas’ several dozen AI robo advisors that provide a customizable mix of hands-on and automated setup. It provides oddsmaker windows, signaled exit/entries (that you can combine with Signal Stack), and a virtually endless number of reports. We pick trade ideas for anyone who has a large personal portfolio or manages a small number of clients.
| Category | AI Feature | Price (Monthly) |
| Alert Assistance | Automated Trades & Signals | $84 |
Our rating: 8.61 / 10
Securities Coverage
Stocks.
The trouble with Trade Ideas is that it’s limited to stocks. it’s hard to justify paying $84 per month on a single-security screener when others like TrendSpider provide 5. That said, stock traders are special, Trade Ideas knows this, and they’ve optimized the platform accordingly.
Popularity & Customer Support
Percentile Popularity: 68%.
With a 20 year legacy, Trade Ideas is among the most popular tools on the market for AI alert assistance trading.
TrustPilot Customer Support: Average.
Despite the history, Trade Ideas does not have an extremely powerful customer service or presence. We have to assume they’re average.
What I Like & Dislike
Like
- Advanced scanning ability for traders focusing on stock securities
- Scans are highly customizable
- Presence of community in-platform is a plus
Dislike
- At $84, Trade Ideas is as expensive as it is popular
- Vast array of tools, while perfect for money managers, is not appropriate for beginners
- Trade Ideas uses third party data providers who can at rare intervals have a lag
Bottom Line
Money managers with a small client base or investors with a large personal portfolio stand to benefit most from Trade Ideas.
Best for Model Testing
My Take
Write your research and trade rules into existence with Capitalise.ai’s text-to-execution solution. You can create conditional buy/sell actions based on pretty much any trigger. It connects with crypto and traditional brokers for execution outside the world of Signal Stack 3rd party broker order routing.
| Category | AI Feature | Price (Monthly) |
| Alert Assistance | Text-to-Execution | Free ($50 starting deposit) |
Our rating: 8.58 / 10
Securities Coverage
Stocks, Crypto, Forex, Indices, Futures.
In reality, you can connect to any of the brokers in the picture below, but the best one is FXCM. It has the largest number of securities available, and big brokers like Fidelity and Pepperstone don’t support trade execution. Interactive Brokers only allows FX and Equities.
Popularity & Customer Support
Percentile Popularity: 73%.
Capitalise.ai is among the top quarter most popular sites, which reinforces what I felt when I first started using it. Something so simple and effective spreads quick.
TrustPilot Customer Support: Excellent.
TrustPilot reviews show that the company has done a good job building an airtight tool, then overstaffing it with customer care. It’s the ideal setup for users — you rarely need help, but when you do it goes fast.
What I Like & Dislike
Like
- Very strong user interface
- Unparalleled text-to-execution solution expedites simple and complex trading strategies
- Backtesting takes away any concerns you may have
- Highest degree of customization available
Dislike
- Limited brokers are available, including only Fidelity and Interactive from tier-1 exchanges
- While intuitive, it takes a bit of time to adjust to the command words Capitalise AI will attach to
- Ignorance of fundamental can occur if you get to “comfortable” with the automations
Bottom Line
Empower your portfolio using every day English with Capitalise.ai’s text-to-execution AI, which may require you open a brokerage account with FXCM.
Best For Data
Most data collection services collect market financial data, news, and public filing data, but Equbot takes data collection to a whole other level.
This UC Berkeley spinoff uses IBM’s Watson AI to collect alternative data like “satellite photos of retail parking lots, CEO mannerisms and expressions during earnings calls” as well as the classic “quarterly reports, news articles, social media posts, [and] financial statements.”1 It’s a data powerhouse.
While it’s really intended for institutional investors, IBM claims that the purpose Equbot is to democratize AI investing. So hey, why not fill out the form and see if there’s something in it for you?
| Category | AI Feature | Price (Monthly) |
| Research | Custom Portfolio Construction Based on News, Financial, Social Media, and other Alternative Data | Quote |
Our rating: 8.53 / 10
Securities Coverage
All.
The famous AIEQ is an ETF composed of US stocks, but custom portfolios can consist of any security on the market, including bonds and commodities.
Popularity & Customer Support
Percentile Popularity: 0%.
EquBot is not an extremely popular tool, simply because it’s so heavily geared towards ETF creation for institutional investors who don’t usually chase providers. That said, you can’t lose anything by reaching out.
TrustPilot Customer Support: Average.
Unfortunately, because Equbot is a B2B service there aren’t any reliable reviews, we have to assume they have average service.
What I Like & Dislike
Like
- Groups extreme alternate data points into decision making, which humans simply don’t have the capacity to do in a reasonable amount of time.
- Its flagship AIEQ has had periods of strong performance, which reinforce its efficacy
Dislike
- Not designed for retail investors
- There’s no way to “gut check” the portfolio output EquBot generates because of the complex data input
Bottom Line
Billed as a Portfolio as a Service (PaaS), EquBot can make among the most informed investment decisions in the world and construct portfolios adjusted to your unique needs.
Best for Funds
Kensho NERD is similar to EquBot and provides a huge amount of non-financial data, but it’s not a portfolio as a service. You can use it to tackle textual analysis in any workflow, not to mention connect to Capital IQ or Wikimedia.
| Category | AI Feature | Price (Monthly) |
| Research | Filings Textual Analysis | Quote |
Our rating: 8.44 / 10
Securities Coverage
All.
Kensho NERD is a research tool, so it can support any kind of security investing, as long as the securities’ performance can be connected to news, social media, and other alt data.
Popularity & Customer Support
Percentile Popularity: 32%
The platform is not as popular as others on the list, but that’s primarily due to its role. Research tools aren’t as popular as alert assistants available through stock screeners.
TrustPilot Customer Support: Average.
There aren’t enough public reviews to give Kensho a score, probably because it’s a B2B company, so we have to assume it has average customer service.
What I Like & Dislike
Like
- Extreme time savings possible on any alt data workflow (not just portfolio assembly)
- Insights provide a leg up on competition because everyone has a strategy, but Kensho is a way to execute yours better than other investors
Dislike
- Price can be steep since Kensho is usually sold as a B2B solution for professional firms
- Not suitable for beginners
- Not a PaaS and may not be appropriate for everyone
Bottom Line
Kensho is best for funds because it provides a high-caliber alternative data wrangling service that’s most appropriate for those who have an intentional text-influenced trading strategy.
Best Alt Data for Traders
Another alternative data provider, Acuity focuses on traders themselves rather than funds or creating portfolios as a service. You can tell pretty quickly from the user interface that it’s built to support the high-speed nature of the trading floor. It’s our top pick for retail investors who want to work with alternative data.
| Category | AI Feature | Price (Monthly) |
| Research | News Content Sentiment Analysis | Quote |
Our rating: 8.38 / 10
Securities Coverage
All.
As a research tool, Acuity provides insights from written content like news and public filings to inform investment decisions on any kind of security.
Popularity & Customer Support
Percentile Popularity: 14%
For the moment, Acuity is one of the least popular options on our list. This is more than likely due to the fact that it’s marketed as a B2B solution and because it’s a research tool, not a screener.
TrustPilot Customer Support: Average.
Acuity doesn’t have enough reviews to provide a wholistic score, so we have to assume they’re average.
What I Like & Dislike
Like
- Sentiment analysis for retail traders, which is not common
- Customizable interface
- Of the alternate data options, Acuity has the best user interface
Dislike
- Not suitable for those who want a PaaS research tool
- Though quote-only, Acuity is built for traders working in firms so the pricing may be out of reach for true solo investors
- There’s a learning curve to get used to the platform
Bottom Line
Retail investors looking for alternative data and a budget to finance it have a strong candidate in Acuity Trading.
Best for Crypto
3Commas is the ultimate crypto AI software, using bots to track and signal crypto via a feature-rich trading terminal. It also provides a series of analytics dashboards you can use to track your progress. Plus, there’s a free trial.
| Category | AI Feature | Price (Monthly) |
| Robo Advisory | Fully Automated Crypto | $29.00 |
Our rating: 8.33 / 10
Securities Coverage
Crypto.
3Commas focuses exclusively on Crypto.
Popularity & Customer Support
Percentile Popularity: 95%
3Commas is hugely popular and had the highest traffic volume on our list. That speaks volumes to its utility.
TrustPilot Customer Support: Excellent.
It’s also one of few options on the list to have an excellent customer review on TrustPilot.
What I Like & Dislike
Like
- Full suite of tracking and trading for crypto
- Focus on one security dramatically improves functionalities
- Very reasonable price
- Support for multiple exchanges built in
Dislike
- Requires a slight learning curve to set up
- Lack of local exchange creates a dependency on other platforms, and inherent risk
- Low integration with non-crypto solutions
Bottom Line
3Commas is the best AI software beginners and advanced crypto traders alike, period.
Best for Options
Optionsai did something so simple it almost seems silly. They integrated a visual options tool with a brokerage so you can easily trade stocks and options. If you’re an options trader, this is the future.
| Category | AI Feature | Price (Monthly) |
| Alert Assistance | Visual Options Alert + Brokerage | $19.00 |
Our rating: 8.27 / 10
Securities Coverage
Stocks & Options.
The main reason optionsai is second to last on our list is the limited number of securities you can use to trade.
Popularity & Customer Support
Percentile Popularity: 36%
Though recent, Optionsai is growing in popularity, beating over a quarter of the others on our list.
TrustPilot Customer Support: Average
For the moment Optionsai.com doesn’t have enough reviews to get an idea of customer service, but given their growth I think it’s safe to assume they’re average or above.
What I Like & Dislike
Like
- Advanced algorithms to create and optimize your trades
- Unparalleled visual representation of option potential, both bear and bullish
- “Built-in” broker to execute trades and signals
Dislike
- Limited to stocks and options, even the underlying broker
- Options have extremely high volatility, so this platform is not ideal for beginners
Bottom Line
Visual options trading is way better than contracts, and OptionsAI.com makes it possible.
Best for Equity Research
Those focusing on equity only research will find in Kavout a strong candidate for their business. It uses typical market data and alternative feeds to develop a proprietary K score that you can use to quickly position ticker quality.
| Category | AI Feature | Price (Monthly) |
| Research | Predictive Equity Score | $49.00 |
Our rating: 8.25 / 10
Securities Coverage
Stocks.
Kavout is focused on equity research, so it’s only useful for stock, ETF, and options traders.
Popularity & Customer Support
Percentile Popularity: 27%
For a research tool, 27% popularity is a pretty strong score, especially when the securities are limited to equity.
TrustPilot Customer Support: Average.
Unfortunately Kavout does not have a strong enough review presence, so we need to assume it’s service is average.
What I Like & Dislike
Like
- Strong backend research supported by a simple AI K-score on the front end for fast decision making
- AI-generated analytics with customization options
Dislike
- For research portals, it’s not ideal to have security restrictions
- No mobile app is a bit frustrating for retail investors that use it on the go
Bottom Line
For thorough, fast equity research summarized in a simple K-score, investors should consider Kavout’s AI-supported information machine.
9 Alternatives
We didn’t want this list to be too long, but there are tons of amazon AI trading platforms out there. Here are 9 more:
- Stoic – Robo Advisory – Crypto Bot
- VectorVest – Alert-Assistance – Machine Learning Alert Algo
- Tradytics – Alert-Assistance – Ai Powered Trade Ideas
- MLQ.ai – Research – Traditional and alternative data aggregation
- Sentieo – Research – Fundamentals data aggregation and prioritization
- Vantage Point – Research – Forecasting
- CyrptoHero – Robo Advisory – Crypto Bot Creator
- Algoriz – Alert-Assistance – Text-to-Simulation for Equity and Crypto
- Imperative Execution – Alert-Assistance – Bid/Ask Analysis
How to Do AI Trading in 7 Steps
AI trading is not using a bot to make all your decisions. So-called automated investing solutions are available through virtually every trading app, and they’re running on AI. True AI trading is the use of AI-enhanced research, smart security screeners that send buy/sell signals, and a signal executor to send order executions to a broker.
Some screeners have native brokerage accounts, but it’s best to maintain a single broker like TD Ameritrade to centralize your trades. Long term, this is how you can seriously improve.
Unless you plan to build HFT algos from scratch or train to build ML models for firms, you’ll pick it up in a few weeks of practice. The best way to start is to choose a single security to focus on, pick your platforms based on your trading volume, and revise, revise, revise.
#1 Get a Broker
You’ll need a broker execute trades. We recommend TD Ameritrade, but there are loads of options. Here’s a list.
- Sofi Active Invest
- Robinhood
- M1 Finance
- Ally Invest Self-Directed
- TradeStation
- Public.com
- TD Ameritrade
- Ally Invest Automated
- Axos Self-Directed
- Stash
- Acorns
- Betterment
- Webull Retirement
- JP Morgan Self-Directed
- Etoro
- Sofi Auto Invest
- Webull Active Account
- Marcus Invest
#2 Get Signal Stack
Unless you’re looking for a fully automated robo advisor, you’ll need a way to connect screening and alert software to your broker. Signal Stack is the only viable option on the market for this.
#3 Choose a Security to Focus On
When you start using AI for trading, you have to learn how the bots work and the new software interfaces, so it’s best to choose a single security to focus on. Most people start with stocks, then evolve to forex and commodities.
#4 Estimate Your Trade Volume
How many trades will you realistically execute? And how much money will they represent? High volume trading will require a thorough screener, and it’s worth paying for something good. I only execute a few trades per month, so I don’t need the full suite.
#5 Get an AI Screener (Buy/Sell Alerts & Signals)
With your estimated volume, you can pick a tool for alert assistance. Those who plan to execute a small number of stock trades like me can go with something simple like Capitalise.ai, but more active traders should choose a more sophisticated solution like TrendSpider.
#6 Backtest
Keep your wits about you and try out your new software with backtesting. This simply means developing a strategy based on a set of parameters and rules, then seeing how it would have worked in the past. I usually test strategies over a minimum of 3 one-year periods, each with 2 years between them.
#7 Go Live
Now you’ve proven (or reasonably tested) your strategy and you’re ready to go live/
Definition
For the sake of completeness, let’s quickly define AI Trading Software.
AI Trading Software are programs that collect vast amounts of market and alternative data (news, social media, public filing, etc.), automate technical analysis to recommend buy/sell orders, and automate order flow between stock screeners and brokers to eliminate delays in manual execution.
In other words, AI-enhanced trading requires all three platforms. To be really competitive, you need them all or else get crushed by those that do.
Categories
There are three types:
- Robo Advisory. Robo advisory is an automated investment service provided by most brokers and apps like Acorns to invest your money in low risk securities, in most cases Exchange Traded Funds (ETFs).
- Research. AI-enhanced research is the collection and analysis of textual data from social media, news outlets, public filings, satellite imagery, and other non-financial sources to make buy/sell recommendations, and more broadly overall strategy recommendations.
- Alert Assistance. Alert assistance refers to the ability of AI robots to go beyond manual alerts and actively propose buy/sell opportunities based on a set of global parameters. It’s the difference between asking an intern to take notes and requesting a detailed action plan.
- Alert (aka “Signal”) Execution. Signal execution is an intermediary service powered by artificial intelligence that allows users to connect a screener with alert assistance and a broker that can actually move the money with a stock exchange.
Software vs Bots
AI Trading Software and Bots are not the same. The software is a user interface that provides the technical infrastructure and market data that the bot uses to make recommendations. One cannot exist without the other. Even Forex Fury, which is a pure bot, cannot exist without the MetaTrader software.
Does it really work?
Solo AI trading definitely works, but it’s not a get rich quick scheme.
The simple reason is that it amplifies herd psychology. Nobody’s AI is that much better than the competition, so bots like Acorns left alone with a “moderate risk” mandate tend to match the market and more aggressive ones tend to create losses and driving volatility.
What does this mean for you?
It means you shouldn’t expect exceptional returns on a fully automated setup. Instead, consider how the technology can enhance your existing strategies without absorbing all decisional power.
I use it to send signals when a company meets my value criteria (WC >=2:1, positive cash, P/E<25, etc.) and shows exceptional volatility in the negative direction. Then I investigate with a “human” eye. If it looks good to me, I push the trade manually.
Obviously this works best for equities. Crypto and Forex, which have no “underlying value” are more difficult. That’s why it’s so much more valuable to limit their presence in your portfolio and fully automate those trades with bot you train and monitor.
Key takeaways:
- AI doesn’t systematically beat the market
- Use AI to help you get information and identify opportunities without outsourcing decisions
- Crypto and Forex are exceptional securities that you can fully automate, given you train them well and minimize their presence in your portfolio
Will AI replace human traders?
Nobody can predict the future, but it’s not likely. While AI’s presence in trading is growing, so is democratized access to the financial markets through platforms like Robinhood and Acorns.
The financial markets are a digital closed system, which means artificial intelligence competes against itself with the same information and their upside performance will be limited. Traders, however, have the ability to network and use “human” subjective judgement.
Retail investors add a new degree of unpredictability to the markets’ closed system, which means human interpretation is even more important. AI can correlate informational input with past performance, but retail investors don’t behave like institutional investors and their growth will make the markets even less predictable.
The U.S. Bureau of Labor Statistics is even predicting 10% growth through 2031.
Limitations
Be careful with AI trading software and bots. There are limitations. Data set availability and speed of transfer limit performance in any given platform, and AI cannot respond rapidly to unforeseen events like humans can.
It’s easy for us to imagine a sophisticated machine that can rapidly adapt to inputs and modify its approach, but the reality of algorithms today is that they require pre-entered parameters. Even Google manually updates its algorithm a few times per year.
Finally, AI lacks contextual understanding. It’s susceptible to manipulation and if robots assume a too prominent role in decision making, a single roge hacker could send the market into a downward spiral.
You might think that machines will learn to interpret false signals, but that’s not the point. Financial regulators will not let AI get to that point because the consequences of pedagogy are financial despair… not for machines, but for people like you and me.
Key takeaways:
- Data sets are often incomplete for AI’s use
- Data transfer delays can produce poor decisions
- Weak adaptability to unforeseen events
- Signal manipulation is a critical roadblock because AI can not be allowed to learn at human expense
Costs of Using AI Trading Software
Alert-assistance and screening software are the most expensive at $99.50/month on average, followed by $49 for research AI, $1 deposit for robo advisory, $0 for signal-to-execution AI.
Legal Concerns
You may find it surprising to hear that algorithmic and general AI trading are perfectly legal. With time it’s likely financial regulators will impose restrictions given increased volatility and manipulation vulnerability AI trading represents.
Comparative Table
Here’s a table of all the data used to assess and rate the options on our list. Use this table to compare them side-by-side.
| Name | Rating (of 10) | Best for… | Category | “AI” Feature | Price (Monthly) | Securities Coverage | Percentile Popularity | Customer Support |
| Acorns | 9.40 | Brokerage Robo Advisory | Robo Advisory | Fully Automated Investing | $3 | ETFs | 100% | Excellent |
| Signal Stack | 9.09 | Trade Executor | Alert to Execution | Screenign to Executing | $1.22 avg per signal | All | 18% | Average |
| Capitalise.ai | 9.06 | Fast Testing | Alert-Assistance | Text-to-Simulation | $50.00 (deposit) | Stocks, Crypto, Forex, Indices, Futures | 73% | Excellent |
| TrendSpider | 8.95 | Technical Analysis | Alert-Assistance | Automated Alerts | $35.00 | Stocks, Crypto, Forex, Futures, Indecis | 91% | Average |
| EquBot | 8.76 | Free | Research | Custom Portfolio Construction Based on News and Financial Data | $0.00 | Stocks, Bonds, Futures, ETFs, Indices | 0% | Average |
| Tickeron | 8.65 | Statistics | Alert-Assistance | Signals, Stats, and Predictions | $180.00 | Stocks, Crypto, Forex | 86% | Average |
| Kensho NERD | 8.61 | Funds | Research | Filings Textual Analysis | Quote | All | 32% | Average |
| Acuity | 8.58 | Brokers | Research | News Content Sentiment Analysis | Quote | All | 14% | Average |
| 3Commas | 8.53 | Crypto | Robo Advisory | Fully Automated Crypto | $29.00 | Crypto | 95% | Excellent |
| BlackBoxStocks | 8.44 | Options | Research | Automated Alerts | $99.97 | Stocks, Options | 55% | Average |
| Forex Fury | 8.38 | Forex | Alert-Assistance | AI Trade Picking | $229 (one-time) | Forex | 45% | Great |
| Trade Ideas | 8.33 | Money Managers | Alert-Assistance | Automated Trades | $84.00 | Stocks | 68% | Average |
| Optionsai.com | 8.27 | Options | Alert-Assistance | Visual Options Alert + Brokerage | $19.00 | Options | 36% | Average |
| Kavout | 8.25 | Equity Research | Research | Predictive Equity Score | $49.00 | Stocks | 27% | Average |
