Online broker Futu introduced AI-powered tools using DeepSeek, a Hangzhou-based start-up. Futu joins around 20 Chinese brokers and fund managers, including Sinolink Securities and CICC Wealth Management, in adopting DeepSeek’s AI technology.

By integrating DeepSeek models, firms like Futu are enhancing how they conduct research, manage risks, make investment decisions, and interact with clients. This trend aims to attract retail investors who may lack the time, training, or tools to perform in-depth research and data analysis, said Dr Kenny Tang, chairman of the Hong Kong Institute of Financial Analysts and Professional Commentators. He added,

“AI could partly help with data sorting or analysis tasks for regular investors, who don’t have such professional investment tools.”

Futu’s new AI-powered tool, Futubull AI, incorporates real-time market data, including financial reports, research papers, investor community discussions, and Nasdaq stock quotes. However, while the publicly available DeepSeek R1 model is only updated through July 2024, Futubull AI uses the most recent data, ensuring up-to-date insights.

According to Futu CEO Leaf Li Hua, updates will include features like AI-assisted stock screening, allowing investors to filter stocks by parameters like market value and price-to-earnings ratio.

Futu has also rolled out AI-powered Algo Trading for advanced investors. The desktop program automates trading strategies by guiding users through a series of yes-or-no questions that lead to tailored strategies.

Investors can test these strategies against live market data before implementation. The tool also simplifies complex options trading by generating strategies based on a user’s outlook on a stock. Leaf Li added,

“Many people struggle just to grasp the basic concepts of options, let alone construct complex multi-leg options strategies.”

Futu chose DeepSeek over general-purpose AI models like OpenAI to maintain privacy and security. DeepSeek allows private deployment and keeps the model and data fully hosted within Futu’s systems, reducing risks associated with sharing user data with third parties.

However, both Futu and analysts caution that AI-generated information should not be considered professional investment advice. Li acknowledged as Futu introduced AI-powered tools, that AI can sometimes provide inaccurate information, adding that Futu clearly advises users to treat chatbot responses with caution and factor in their personal circumstances when making decisions.

While AI tools are gaining popularity, there’s still uncertainty about how much they can truly help investors. According to Tom Chan Pak-lam, honorary president of the Institute of Securities Dealers, it remains to be seen whether AI can help investors earn more, as they also need to fully understand how AI can support them.

Source of image: Edited from Futu