A company affiliated with former President Donald Trump is set to begin selling expedited access to his social media posts, a move that analysts say could allow traders to profit from advance knowledge of policy announcements. The service, dubbed Truth API, is being offered by Trump Media & Technology Group, the parent company of Truth Social.
Starting Saturday, Wall Street traders willing to pay for the service will receive early access to Trump's posts on Truth Social. Similar fast-access feeds are offered by other social media companies and news providers, but Truth Social's offering is distinct because Trump himself is the source of much of the content, which has historically moved markets. His posts have influenced decisions on tariffs, international agreements, and leadership appointments.
Critics have raised concerns about the potential for insider trading and the use of public office for private gain. Irene Aldridge, head of Able Alpha Trading, stated that if this were the CEO of a public company, it could lead to jail time. She noted that the president has "the front seat to all the action, who makes all the decisions, and he's disclosing this ahead of time to a select group."
Trump's press office declined to comment on the propriety of the service, referring questions to Trump Media & Technology. The company, in a statement, criticized Democratic opponents, suggesting they mischaracterized the service due to "ideological opposition to free markets or a failure to grasp the distinction between public and nonpublic information."
Trump has a history of using Truth Social to announce policy shifts that have caused significant market fluctuations. For example, recent posts have included threats to impose higher tariffs on Canada, discussions about a nuclear deal with Saudi Arabia, and commentary on the conflict in Iran. Traders with advance knowledge of these posts could potentially profit by quickly adjusting their positions in currencies, stocks, or commodities affected by such announcements.
Joe Saluzzi, co-founder of Themis Trading, estimated that about 100 high-frequency trading firms might subscribe to the service, describing the information as "market-moving."
Truth API comes as high-frequency trading firms increasingly invest in technology that bypasses slower internet connections, providing direct lines to news and data. The potential for profit is amplified by artificial intelligence's capacity to quickly analyze posts for market-moving changes, coupled with Trump's frequent online pronouncements.
Traders benefit from price volatility. Trump's posting style, often characterized by cliffhangers and policy reversals, can create such volatility. The ability to act on information before it is widely disseminated allows traders to capitalize on both upward and downward price movements.
In addition to policy-related posts, the service may also include content from other prominent Truth Social contributors, such as Trump's sons, Donald Jr. and Eric. Trump himself has also recently used the platform to praise specific publicly traded companies, leading to brief surges in their stock prices.
Truth Social asserts that information will be released to traders and the public simultaneously, thus posing no fairness issue. However, Saluzzi argued that the timing of receipt, not release, is what matters for high-speed traders. He contended that subscribers with specialized systems would be able to act faster than individual retail investors, who would ultimately be the "losers."
It remains unclear which firms are signing up for the feed, as several major high-speed trading firms did not respond to requests for comment. The service's monthly fee is reportedly $100,000. If even a few firms subscribe, it could significantly boost revenue for Trump Media & Technology, which has reported substantial losses despite the platform's role in disseminating policy news.
Democrats have vowed to investigate the new service if they gain control of Congress. Senator Elizabeth Warren stated, "We will haul in those responsible for this open corruption to answer to the American people."