Trading apps for free like AMC, Gamestop, Blackberry, Nokia, and other companies have been banned from Robinhood. Traders will not be able to buy the shares of these companies but will be able to sell them. This announcement has resulted in allegations of market manipulation by Robinhood and other trading platforms.
Individual traders claim that this is a clear case of market manipulation. At the same time, Robinhood claims that the sanctions were imposed due to the high volatility in the shares of Gamestop and other companies. Volatility was clearly visible in GameStop stock and other companies, making it an easy exit for Robinhood. GameStop stock was trading below $20 recently but fell to $350 on Wednesday and fluctuated between $112 and $483 on Thursday. Volatility is simply defined as this fluctuation.
Robinhood Backs Wall Street’s Power Brokers
The reason for this stock price volatility is questionable. Theories are starting to circulate. The story begins with users of the Reddit subforum Wall Street bets acting bullish on GameStop shares, only to later discover that the WallStreet hedge fund has dramatically reduced the company’s prospects. As a result, he began buying Gamestop stock to cover his short positions. This resulted in a 1640 percent increase in the price of Gamestop shares in just ten days.
Trading in a particular stock or market is a common practice in the stock market. However, it is not normal practice to pause and suspend GME for an entire day. This is because retail investors worked to shield Wall Street insiders from massive losses they would never do to a single investor.
Following the lead of individual investors on Reddit and other platforms, several public figures have spoken out against Robinhood’s actions.
“This is unacceptable,” Democratic Representative Alexandria Ocasio-Cortez tweeted in response to Robinhood’s initial decision to wind up the company.” “We now need to know more about Robinhood App’s decision to prevent retail investors from buying stocks while hedge funds are free to trade the stock as they please.”
“It took less than a day for big tech, big government, and corporate media to spring into action and collude to protect our hedge fund friends on Wall Street,” tweeted Donald Trump Jr., referring to the current government. Guys, a rigged system looks like this!”
“Here come the small apologists,” tweeted by Elon Musk, who has always been a vocal opponent of short-sellers. Be shorty and don’t show him any respect.”
What is Robinhood App, and How Does it Work?
Robinhood is a stock trading app that aims to democratize finance for all by allowing anyone to participate in trading. This app will enable users to invest in shares without paying brokerage charges. Individual investors had to pay hefty sums to brokers in traditional stock trading.
Robinhood made it easy, with no brokerage fees. It was a game-changer, and people flocked to it like bees. Robinhood has not only eliminated additional fees but also made trading easier for those with no prior experience. It offers a wide variety of stocks to users, including Tesla, Apple, Google, and others.
How Do I Make a Robinhood App That is Similar To a Stock Trading App?
Because it has favored the elders, Robinhood no longer sounds like Robinhood. This paves the way for apps like Robinhood and legitimate apps that allow individual investors to profit from trading. Join us and grow Robinhood if you want to be the next Robinhood for individual investors.
With our customized Robinhood-like free-trading platform, Epdup can help you launch an online trading and investment platform. Keep reading to learn more about the Robinhood app and why it’s so important today.
Why does Robin Hood stand out from the crowd?
- A simple and attractive design
- There is no additional charge for trading.
- There is no account minimum.
- Because it is a member of FINRA and SIPC, it is a secure app.
Features of Robinhood App
Robinhood App is a ready-to-use stock trading platform that allows entrepreneurs to set up a stock trading and investment platform quickly.
Take a look at some of its features:
A Perfect Dashboard
A trader’s dashboard is where all the data related to trading is displayed. It contains information such as order status, balance, chart, watch list, and holdings. All information should be clear and easy to understand.
A Trader’s Portfolio
It is a feature that allows users to create and manage trading portfolios. It includes filtering and sorting capabilities, making it easier for users to find what they are looking for.
Estimate on Chart
Since the value of shares fluctuates every second, the stock data must be updated every second. This information should be viewed with charts and stock quotes so that users can understand it.
Investing in Shares
This is the most crucial feature of the Robinhood app. This feature allows the user to buy or sell stocks.
Platform Revenue Models Like Robinhood
Similar to Robinhood, the stock trading platform does not charge the user any additional fees for trading. That doesn’t mean it doesn’t make money.
For your users, the Robinhood clone solution includes several premium features. These premium features are very attractive and tempt the users to pay for them. The premium features are loans to trade, investment tools, interest to fund the app, and borrowed stocks purchased on margin.
In-app advertising is a common way for any app to earn money. Your Robinhood-style platform also makes money by displaying in-app ads.
The stock market has always been a haven for the rich, and it has become difficult for outsiders to break into the market. On the other hand, individual traders hope that with the digitization of trading, they will find a chair with their name on it. Individual traders will follow your lead if you launch a white label trading and investment app like Robinhood in this scenario.