Quick answer
An AI stock trading bot uses rules or machine-learning models to place trades in your brokerage account automatically. The good ones show verified live results, cap risk per trade, and keep your money in your own account. Avoid bots that promise guaranteed returns or ask you to deposit funds with them.
What AI stock trading bots actually do
- Scan price and volume data for patterns defined by the strategy.
- Size positions based on account equity and risk limits.
- Place and manage orders through your broker's API.
- Log every trade so you can audit results.
Red flags
- Guaranteed or 'risk-free' returns.
- Deposits into the provider's account instead of your own broker.
- Backtests only, no live track record.
- Pricing based on a share of your profits with no transparency.
Managed platform vs DIY stock bot
- DIY: cheaper upfront, but you handle coding, hosting and monitoring.
- Managed: the platform runs execution and updates; you choose strategies and risk.
- The Automated Trader is a managed platform with 19 strategies across markets, from $199/mo plus $499 activation.
Next steps
See full plan details on the pricing page, learn how the platform works, or read our AI trading bot comparison. Trading involves substantial risk; see our legal disclaimers.
FAQ
Do AI stock trading bots work?
Some do, over specific periods and market conditions. None are guaranteed. Look for verified live results and strict risk controls.
Are AI stock trading bots legal?
Yes in the US when you trade your own account through a registered broker.
Can a bot withdraw my money?
A properly set up connection only allows trading, not withdrawals. Your funds stay in your brokerage account.
How much does an AI stock trading bot cost?
From free to several hundred dollars a month. The Automated Trader costs $499 to activate plus $199–$499/mo based on strategy count.
