Robinhood launches AI agents for automated retail trading

Robinhood has launched new artificial intelligence (AI) tools that allow retail investors to automate trading and online purchases through AI-powered agents connected directly to their accounts.

The company announced two new products on Wednesday, Agentic Trading and the Agentic Credit Card, aimed at giving customers the ability to let AI systems manage investment activity and complete transactions on their behalf.

The launch marks one of the clearest moves yet to bring AI-driven financial automation from institutional trading desks to everyday retail investors.

AI agents can trade on behalf of users

Robinhood said customers will be able to connect third-party AI agents to their brokerage accounts and authorise them to carry out trading strategies automatically.

The AI systems can monitor market conditions, rebalance portfolios and execute trades based on instructions set by the customer. Users can define specific investment goals or trading rules, while the AI agent manages activity within those limits.

For example, a user seeking exposure to artificial intelligence companies could ask an AI agent to create and maintain a portfolio focused on AI stocks. Another investor could set conditions for buying oversold shares based on a chosen strategy.

Initially, Agentic Trading will support stock trading only while the product remains in beta testing. Robinhood said support for options, cryptocurrency and futures trading will be added later.

Automated shopping through AI-connected credit cards

Alongside trading automation, Robinhood also introduced the Agentic Credit Card, which allows AI agents to complete purchases automatically using virtual cards linked to customer accounts.

The company said users can instruct agents to track prices for products or make purchases once selected conditions are met. This could include buying goods after prices fall below a set level or completing transactions during promotional offers.

Robinhood said the tools are designed to reduce the amount of time users spend researching investments or monitoring prices manually.

AI trading expands beyond Wall Street firms

Automated AI trading systems have traditionally been used by hedge funds, banks and institutional investors with large technology and risk-management teams.

Robinhood’s launch brings similar technology to consumer investing platforms used by retail traders.

The development reflects a broader trend across financial services, where firms are increasingly using AI tools to automate investment decisions, portfolio management and customer services.

The expansion of AI-driven investing into retail markets also raises questions around investor oversight and the level of control handed to automated systems during periods of market volatility.

Robinhood adds safeguards for users

Robinhood said it built several safeguards into the new products to limit risks linked to autonomous trading activity.

According to the company, AI agents will operate through separate trading accounts with access restricted to funds specifically allocated by customers. Users will also receive notifications whenever trades are executed and can disable the AI systems instantly.

The company added that customers can set spending limits and choose manual approval settings for AI-driven purchases.

These controls are intended to help users manage how much authority AI agents have over investment and spending decisions. 

Robinhood shares rise after announcement

Shares of rose 1.5 per cent to $75.20 during Wednesday morning trading in the United States following the announcement.

The launch places Robinhood among a growing number of financial technology companies introducing AI-powered products aimed at retail investors as competition in digital investing services continues to increase.