The world of retail trading is undergoing a transformative shift. Once limited by restrictive access to capital, institutional-level tools, and genuine liquidity, individual traders are now navigating markets with unprecedented freedom—and power, according to Louis Cooper, Chief Commercial Officer at Axi.
Empowered by capital access, professional-grade tools, and deeper market knowledge, today’s retail traders are not just competing with institutions—they’re influencing the way markets move. As Cooper said: “We’re not just seeing a change in who trades, but in how the market itself functions.”
According to Cooper, the retail trading revolution is being propelled by a core ambition: “the ability to trade like professionals”. But this goes beyond simply taking larger positions.
“For retail traders, scaling isn’t just about size—it’s about gaining access to capital, tools, and real market conditions that support sustainable returns,” he told Traders Magazine.
Three converging trends are making this possible: the self-regulation efforts of brokers, the democratisation of trading knowledge and tools, and new models that provide direct access to liquidity. These changes are dismantling the traditional walls that separated institutional and retail traders.
Cooper pointed out that while many proprietary trading firms recognised the desire for scale, “they imposed restrictive conditions that simulate, rather than replicate, real market exposure”. Only a select few platforms have truly bridged the gap, offering access to genuine liquidity alongside equitable capital allocation. This, he explained, is what ultimately enables traders to grow within authentic trading environments.
Liquidity—authentic, reliable liquidity—is a key differentiator in today’s trading landscape. As Cooper highlighted: “execution quality is directly impacted by the source and structure of liquidity, especially in times of volatility”. Many brokers rely on “Prime of Prime” arrangements that recycle third-party liquidity, creating inconsistencies and slippage that can erode a trader’s edge.
The rise of platforms integrated with tier-one or non-bank liquidity providers has smoothed trading conditions, empowering retail traders to execute with the confidence and precision once reserved for institutional desks.
“Retail traders are now market makers in some asset classes and breakers in others,” said Cooper. Their collective movements are reshaping liquidity flows, adding depth to emerging assets while amplifying volatility in traditional ones. He cited the Trump-era tariff threats as a case where retail sentiment significantly impacted market pricing, forcing institutions to adapt.
Today’s markets demand more than just tools—they require mastery, according to Cooper, who identified three essential skills for retail traders looking to stay competitive: macro-fluency, access to deep liquidity, and defensive discipline.
“Volatility is now the baseline,” he asserted. “Retail traders must understand how policy shifts—from tariffs to interest rate moves—ripple across assets.” Traders who anticipated the 2024 gold surge or Bitcoin’s record-breaking rally demonstrated the power of macro awareness.
However, even the most well-informed strategies are vulnerable without stable liquidity. “In high-volatility conditions, unreliable brokers can leave traders stranded with bad fills,” Cooper warned. “The difference between seizing opportunity and suffering loss often comes down to liquidity access.”
And while technology has narrowed the gap, discipline remains the ultimate edge. “Even with advanced sentiment algorithms, emotional trading is the fastest path to ruin,” he added. “Success lies in sticking to data-driven decisions and resisting FOMO-driven hype.”
Retail Traders vs Institutions: A Shifting Power Dynamic
The gap between institutional and retail traders is shrinking. Agility, niche focus, and fast adaptation are giving individual traders an edge—particularly in dynamic markets like crypto and commodities. As Cooper noted, “Retail traders consistently capitalise on opportunities that institutions are too slow or constrained to seize”.
Access to real-time data, trading algorithms, and education has created an army of sophisticated, informed retail traders. But tools alone don’t guarantee success. “The recent collapses of proprietary trading firms are reminders that capital and tech mean little without risk management and real liquidity,” he said.
Cooper believes the traders who will succeed are those who balance these capabilities with patience, strategy, and discipline: “The message is clear—real traders with real skills will thrive.”
As more retail traders gain capital access, their influence on markets becomes undeniable. According to Cooper, “they’ve deepened activity in niche assets like crypto and gold, adding liquidity—but in a way that’s more sensitive to crowd sentiment.” This can create fragility. When fear strikes, retail traders tend to exit simultaneously—amplifying price movements and forcing systemic responses.
Moreover, mobile platforms and social networks have compressed reaction times dramatically. “What once took days now happens in hours,” Cooper said. “This has made volatility patterns faster and more socially driven.”
Nonetheless, retail participation has improved price discovery in overlooked corners of the market. “While herd behaviour creates mispricing, retail sentiment often reveals trends long before institutional models catch up,” he added
Despite technological advancements, Cooper emphasised that the real edge lies in the human element. “Algorithms can scan headlines, but only humans can interpret the full implications of geopolitical or economic shocks,” he explained.
He stressed the importance of combining tech tools with judgment: “The best traders use technology as a magnifying glass—not a shortcut.” Success, he believes, will go to those who pair data-driven strategies with macro awareness, emotional control, and a long-term perspective.
Looking ahead, Cooper envisions retail traders playing an even larger role in shaping financial markets. “They’re no longer just participants—they’re catalysts,” he said.
Younger, mobile-native traders are particularly influential, gravitating towards assets like crypto and gold and leveraging social trading to scale their strategies rapidly. This generational shift is changing not just how markets are accessed, but how they behave. “During the gold rally, younger traders using copy-trading amplified buying pressure faster than institutions could adjust their models,” Cooper noted.
The convergence of mobile engagement, evolving trader profiles, and robust infrastructure is setting the stage for a new market paradigm. “We’re witnessing the rise of a generation with unprecedented market-shaping power,” he concluded.