Robinhood and Other Investment Apps Could Face Tighter Regulation Over GameStop Actions

Robinhood and Other Investment Apps Could Face Tighter Regulation Over GameStop Actions

Robinhood, the trading app that allowed many of the investors responsible for inflating GameStop's share price to purchase stock, should face tighter restrictions in the future, industry figures have told Newsweek.The California-based app, founded in 2013 with the promise of "commission-free stock trading," is one of a raft of easy-to-use broker-dealer apps, that includes Webull, Moomoo and etoro, responsible for introducing millions of individuals investors to stock trading.It was the route used by many of the first-time traders on the subreddit r/wallstreetbets to purchase shares in GameStop, after the stock was earmarked for collective action by Reddit investors to both reap quick gains and impose losses on hedge funds and other short-sellers who have betted against the video game retailer's value falling.Robinhood and its competitors are now set to face scrutiny as regulators respond to the dramatic price inflation of GME shares. The White House and U.S. Securities and Exchange Commission said yesterday they were "monitoring" the latest developments around GameStop's stock surge.The logos of videogame retailer GameStop and trading application Robinhood in a computer and on a mobile phone in Arlington, Virginia on January 28, 2021. Robinhood has played a major role in allowing individual investors to push up