Federal regulators want to impose new guardrails on the way retail investment firms such as Robinhood Markets use advanced analytics to encourage customers to trade, the latest in a series of policy efforts prompted by the 2021 meme-stock craze.
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Apps like Robinhood make trading fun, but SEC fears it is costing investors
“The SEC’s proposal would turn back the clock, bringing U.S. financial markets to the old, manual days when retail investors were forced to interact with their broker or advisor by phone or at a branch office,” Robinhood Chief Brokerage Officer Steve Quirk said.
