Trading Apps Incite Anger With Restrictions On GameStop Purchases

Trading Apps Incite Anger With Restrictions On GameStop Purchases
Andrew Rummer

about 3 years ago1 min

Mentioned in story

US trading apps Robinhood, TD Ameritrade and Charles Schwab took steps to restrict trading in GameStop and other stocks hyped on Reddit’s WallStreetBets forum. In Europe, Trading 212 banned new purchases of GameStop and AMC shares “in the interests of mitigating risk for our clients”.

Many retail traders reacted with fury – including in Finimize’s group chats – with some seeing the move as a conspiracy against small investors. 

“Robinhood founders must go to prison,” tweeted Dave Portnoy, the founder of Barstool Sports. “I own AMC, Nokia, and Naked Brand Group. I bought them with the understanding we live in a free market where people can buy and sell stocks fair and square and at their own risk.”

GameStop’s shares dropped 75% following Robinhood’s tweet that it was limiting trading, before rebounding.

Gamestop shares on Thursday
Gamestop shares on Thursday (source: Bloomberg)

GameStop had roughly 10x-ed in the past week. The surge put brokers in a tough position – with calls from some quarters for trading to be halted to cool the speculative fever and the US regulators saying they were monitoring the situation.



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