New Study Shows Modern Trading Technology Has Cut Costs for Retail Investors by 50 Percent
WASHINGTON–(BUSINESS WIRE)–Everyday Americans invested in the markets have on average 30 percent more savings in their retirement accounts over the course of a lifetime due to advances in market automation over the last three decades, according to a landmark report issued today by the Modern Markets Initiative, a non-profit education and advocacy organization for innovation in today’s markets.
The study, “A Report on Market Automation and Democratizing Markets: Lowered Bid-Ask Spreads and Investor Savings,” found that retail investors have the ability to retire 2-1/2 years earlier to reach the same retirement savings goal because of modern electronic trading technology.
The report’s conclusions come from an extensive review of bid-ask spreads in stocks (the difference between the bid and offer prices) over the past 30 years.
The report states: