What Percentage of Trading Is Algorithmic? (Algo Trading Market Statistics Explained)

Since the emergence of the internet, algorithmic trading has come to dominate the financial trading world, but what percentage of trading is actually algorithmic?

About 60-75 percent of overall trading volume in the U.S. equity market, European financial markets, and major Asian capital markets is generated through algorithmic trading, according to Select USA, in 2018. However, the overall trading volume of algorithmic trading in emerging economies like India is estimated to be around 40 percent.

What is algorithmic trading?

Algorithmic trading is a method of trading the financial markets using pre-programmed algorithmic trading strategies to monitor the markets and execute trades. Algorithmic trading facilitates automated trading across all asset classes and market segments. This happens with zero direct human intervention, as the trades are executed based on pre-written instructions.

Here’s how it works: A trader loads his server with trading algos with specific instructions for his trading strategies. The algos monitor