Trading platforms

Retail vs. Institutional Trading: Platforms, Services, and the Rise of Robinhood Student’s Name Institutional Affiliation Course Professor Date Retail vs. Institutional Trading: Platforms, Services, and the Rise of Robinhood Within the multifaceted context of financial markets, two crucial types of traders dominate, including retail traders and institutional traders. The coursework provides that trading involves taking an active net spot in a causal instrument or asset (Chapter Sixteen, n.d.). Even though different traders hold similar objectives at times, their approaches and the platforms they utilize vary significantly. Navigating the complexity of the trading world necessitates an extensive comprehension of the subtle differences between these groups. This essay delves into the differences between retail and institutional trading, exploring different platforms they use to ensure successful transactions in the wide world of financial markets. Institutional Traders These traders represent investment banks, hedge funds, and pension funds, among other sizable financial organizations. These traders have the capability to influence significantly market movements because of their immense size and financial power. The most common features of institutional traders include but are not limited to long-term emphasis, complex trading approaches, and volume and impact. For instance, institutional traders emphasize the long-term investing horizon. In this case, banks and pension funds usually employ lasting risk management and portfolio diversification in their tactics (Barker, 2020). Moreover, because of their large transactions, these traders have a significant influence on pr...