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.

Finimize

BECOME A SMARTER INVESTOR

All the daily investing news and insights you need in one subscription.

Disclaimer: These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment advisor.

/3 Your free quarterly content is about to expire. Uncover the biggest trends and opportunities. Subscribe now for 50%. Cancel anytime.

Finimize
© Finimize Ltd. 2023. 10328011. 280 Bishopsgate, London, EC2M 4AG