Why Robinhood Removed AMC

There’s a famous quote by Dave Ramsey that goes like this: “You must gain control over your money or the lack of it will forever control you.” And one the best ways to do that is by monitoring those platforms that you use for investing your hard-earned money. Robinhood, a popular free-trading app, has been facing some serious issues in the recent past. If you are interested in investing money through this app, or are already using it to grow your money, then you should continue reading.

WHY ROBINHOOD REMOVED TRADING ESTRICTIONS’ ON AMC SHARES

In early February, 2021, Robinhood app lifted the restrictions it had placed on major Reddit favorites including AMC. This ease in trading limits came soon after this free trading’ app found itself overrun by controversies when it had placed the restrictions in late January of 2021. After this announcement Robinhood mentioned in a log post’ that there would not be any temporary limits for customers for increasing their positions.

The Company had earlier caused an outrage among lawmakers and customers when they suddenly suspended (temporarily) buying stocks of AMC, GameStop, and Blackberry among others that Reddit traders were backing. As soon as the restrictions were implemented calls were being made to boycott this online brokerage while the Congress was set to start investigating this case.

During the end of January and starting of February, 2021, Robinhood had been slowly easing their imposed trade restrictions by raising the total number of hares’ that users could purchase of reddit stocks’. The Company put the blame for the temporary purchasing ban on urging’ market volatility. They found this to be responsible for a dramatic rise in their deposit requirements’ at their clearinghouses’. The startup denied repeatedly that the action was taken on instructions by those hedge funds that were hurt due to the GameStop’ rally.

The CEO of Robinhood, Vlad Tenev, mentioned on Twitter that the startup had acknowledged that there were challenges thrown their way as a fast-growing startup’. He further said that in order to transform an industry internally one requires hard work, investment, determination, and a focus that is laser sharp on those the company wants to serve. There are possibilities of occasional shortfalls during this journey.

Janet Yellen, Treasure Secretary, gathered together the regulators from the Federal Reserve, the securities and Exchange Commission’, and other different agencies for discussing the market volatility caused by Reddit. The Treasury Department’ said that the regulators believed that the ore infrastructure’ had been resilient at the time of heavy trading volume’ and high volatility. They also agreed that it was important for the SEC to release a timely study’ of these events.

ROBINHOOD’S TRADE RESTRICTION

On 28th January, 2021, the startup announced through a blog that it was going to start imposing limitations to prevent users from purchasing stocks from multiple companies including Nokia, GameStop, and AMC. The reason for this was cited by the Company to be market volatility’ because of which they would allow customers only to sell the shares they own that belong to these companies, not purchase or perform any other trading method. The startup said that because of the recent market volatility’ they were going to restrict transactions on companies including $BBBY, $AMC, $EXPR, $NAKD, $KOSS, $NOK, and $GME.

Later on in June, 2021, Robinhood said to CBS News that the startup had made heavy investments in enhancing their platform’s stability, working on building their compliance and legal teams along with customer support, and improving their educational resources. They were going to keep focusing on their customers while democratizing finance for all’.

WHAT IS ROBINHOOD?

It is a top-notch stockbroker with an app for stock trading that can help you get good returns on your investments. The app is however, not suitable for traders who are advanced and looking for groundbreaking features. But amateurs can make the most of this app by making the most of its user-friendly tools. The other features of this app are basic but quite helpful.

PROMINENT FEATURES

This app comes with all the required features for you to properly manage your portfolio and account.

It provides you with the option of customizing notifications and news so that you remain updated to make trading decisions on the latest information you get via this app.

The ash Management’ tool in this app assists you with managing your regular monetary requirements.

It also comes with tools for basic market research’. watchlists, real-time quotes, and other intriguing features.

This app does not come with any account minimum’ requirements.

It provides access to 650 global stocks via ADRs or American Depository Receipts along with more than 5000 US-based stocks.

The best part is that this stock trading online platform is commission-free.

REGULATORY BODIES

This platform is highly regulated and monitored by –

The FINRA or Financial Industry Regulatory Authority

The SEC or Securities and Exchange Commission

METHODS FOR FUNDING

This app supports debit/credit cards and bank transfers as methods for funding.

THE GOOD PART

It is a user-friendly powerful app

It gives you access to fractional shares and IPOs

Real-time quotes

It features ash Management’

THE NOT-SO-GOOD PART

It is best suited for beginners

It provides access to a limited number of global stocks

The tools for advance trading are not impressive

HOW DO YOU FIND A WORTHY APP FOR TRADING STOCKS?

You have to be on the lookout for multiple key factors to find the most suitable app for trading stocks. Here are some essential factors to keep in mind before locking in on an app for tock trading’:

THE CONVENIENCE – You will know that an app for trading stocks is of good quality if you can easily navigate and use it, even if you are new to stock trading.

THE COST – It is imperative for you to keep the cost as low as possible so that you can maximize your profits and minimize your losses. But it is interesting to note that several top-quality brokerage firms provide exclusive app without charging any fees, which is good for you.

THE RESEARCH – An app for trading stocks should provide you with several tools for strong analysis and research.

STOCK OPTIONS – Top-notch apps for trading stocks provide access to multiple stocks for you to choose from. You should additionally get access to trading products like bonds and ETFs via the app.

INFORMATION – You should be able to get access to high quality and authentic information and educational content on a good app for trading stocks.