Human Touch Still Counts in Equity Trading - Here’s Why

Algos can't replace gut instinct—not yet anyway.

Why Traders Still Trust Human Judgment

While automated systems handle 80% of daily volume, the big moves still get called by seasoned pros. They read between the lines, spot patterns machines miss, and make calls that would fry a server.

The Unquantifiable Edge

It's not just about data—it's about experience. Market veterans sense shifts before they show up on charts, leveraging decades of intuition that no backtest can replicate. They're the reason some firms still outperform pure quant shops.

Human Touch vs. Machine Efficiency

Sure, algorithms execute faster and cheaper. But when markets go haywire, you want a human pulling the lever—not some code stuck in a loop. Just ask anyone who lived through the Flash Crash.

At the end of the day, trading's still more art than science. And until machines learn to bluff at poker or smell fear through a screen, the pros will keep cashing those bonuses—because apparently, gut feelings don't come cheap.

In an era of lightning-fast electronic trading, great customer service from a human has become the ultimate secret weapon for equity brokers.

Every year, Crisil Coalition Greenwich asks buy-side equity traders across North America to list the most important factors driving their choices when picking brokers for “high-touch” trades. This year, more than two-thirds cited customer service and broker desk coverage, making those factors far and away the top criteria.

“Even as electronic execution becomes the norm, the human touch has emerged as the ultimate differentiator,” says Jesse Forster, Senior Analyst at Crisil Coalition Greenwich Market Structure & Technology, and author of U.S. equity broker selection: It’s the service, stupid. “It’s no longer just about speed and efficiency – it’s about having a trusted counterparty offering tailored support, access to natural liquidity and a steady supply of market intelligence throughout the trading day.”

Of course, electronic execution, which accounts for a growing share of all equity trading volume, counts in terms of both broker capabilities and trade outcomes. When selecting brokers for “low-touch” trades, buy-side traders turn first to execution quality and trade performance, which are cited as key selection factors by 46% of study participants, followed by the increasingly important function of ALGO customization.

“However, even in low-touch trading, traders favor brokers who excel at providing execution consulting, and strategy advice, both of which are generally delivered by human sales traders,” says Jesse Forster.

Overall, traders seek brokers who can deliver exceptional service, high-performance trade execution, and expert guidance and support. This includes both the ability and willingness to help them navigate complexity, optimize their trading strategies, and achieve their investment objectives. In many cases, those traits are not so easy to find.

U.S. equity broker selection: It’s the service, stupidanalyzes how buy-side organizations choose brokers for equity trades and identifies the top criteria driving broker selection for both high-touch and low-touch trades. The report also highlights the major challenges facing buy-side equity traders across the trade execution cycle and in their everyday work.

Source: Crisil Coalition Greenwich