Wall Street is in turmoil; Robinhood, the free trading app, announced restrictions to stocks of AMC, Gamestop, BlackBerry, Nokia, and others. The traders won’t be able to buy these companies’ stocks, whereas they can sell them. This announcement by Robinhood and other trading platforms have started to blow horns of manipulation in the market.
The individual traders claim this as explicit market manipulation. At the same time, Robinhood states that the restrictions have been implemented due to high volatility in Gamestop and other companies’ stocks. This was an easy exit door for Robinhood as the volatility in Gamestop stocks and other companies was blatantly visible. The GameStop stock was priced below 20 dollars in recent times, but it witnessed a plunge to $350 on Wednesday, and on Thursday, it kept fluctuating between $112 to $483. This fluctuation simply defines volatility.
Robinhood sides with the Biggies in Wall Street
The reason behind this volatility in stock value is fishy. Theories have begun to float around. The story starts with the users of a subforum named WallStreetBets in Reddit acted bullish in the Gamestop stocks and later found that the WallStreet Hedge funds have heavily shorted the Gamestop’s prospects. Reacting to this, they started buying the stocks of Gamestop to cover their short positions. This led to a whopping 1640% rise in the Gamestop stocks’ price in just ten days.
In the stock market, trading on a particular stock or the market is a prevalent behavior. But, the halting and suspension of GME for a whole day is definitely not usual behavior. This is because the retail investors took this action to protect the Wall Street insiders from huge losses, which they would never do for an individual investor.
The OutBurst of public personalities
Following the individual investors from Reddit and other platforms, even many public personalities came forward dashing against this action by Robinhood.
Democratic representative Alexandria Ocasio-Cortez tweeted, “This is unacceptable,” in response to Robinhood’s initial decision to shut down trading. “We now need to know more about Robinhood App’s decision to block retail investors from purchasing stock while hedge funds are freely able to trade the stock as they see fit.”
Donald Trump Jr. also took this as an opportunity to lash out at the existing government he tweeted, “It took less than a day for big tech, big government and the corporate media to spring into action and begin colluding to protect their hedge fund buddies on Wall Street. This is what a rigged system looks like, folks!”
Elon Musk, who has always made his stand against the short-sellers, tweeted, ”Here comes the shorty apologists, Give them no respect, Get shorty.”
What is Robinhood App?
Robinhood is a stock trading app with an objective to democratize finance for all and allowing every individual to get into trading. A user can invest in stocks using this app with no brokerage fee. In traditional stock trading, the individual investors had to pay the brokers a hectic amount of money. Robinhood made this hassle-free with zero brokerage fees. This was a breakthrough making people flocking towards it like bees. Robinhood has not only laid off the extra fees but also made trading easy even for people with absolutely no knowledge of it. It has a wide selection of stocks for the users like Tesla, Apple, Google, and more.
Although Robinhood claims itself to support the individual investors and allow them to have control in trading, the restrictions it placed Thursday has revealed its true face. This had led to the rage of people who now no longer wants to trade with Robinhood.
How to Launch a Robinhood like the stock trading app?
Robinhood no more sounds Robinhood as it has sided with the biggies. This paves the way for an app similar to Robinhood and a real one that stands on its ground to allow individual investors to earn money through trading. So, if you want to be the next Robinhood for the individual investors, join us and develop a Robinhood clone.
We in Appdupe can help you launch an online trading and investment platform with our customized Robinhood like free-trading platform. Keep reading to know more about the Robinhood clone App and the need for it today.
Reasons why Robinhood stands out of the crowd?
A simple and attractive design
No extra charges for trading
No account minimus
A secure app as it is a member of FINRA and SIPC
GOT AN IDEA FOR A STOCK TRADING APP LIKE ROBINHOOD? LET’S DISCUSS!
Robinhood clone is a ready-made stock trading platform solution that makes it easy for entrepreneurs to launch a stock trading and investment platform. Have a look at some of the features of it.
An unambiguous Dashboard
A dashboard is where all the data with respect to trading is displayed to the trader. It includes order status, balance, charts, watchlist, holdings, etc. All the data should be clear and comprehensible.
This is a feature using which the user creates and manages his trading portfolio. This comes with a filter and sort functionalities making aiding the user to search effortlessly.
The data of stocks should be updated every second as the value of stocks keeps varying every second. This data must be projected with charts and stock quotes making it comprehensible for the users.
This is the most important feature of the Robinhood Clone App. The user buys or sells stocks using this feature.
The user has to transfer his funds from his accounts to the app in order to trade. The user can only buy or sell a stock if he has transferred his funds into the app.
A watchlist is a feature through which the user keeps track of certain stocks he wishes to buy or sell in the future. The watchlist can be edited at any time.
Synchronization in devices
By this feature, the user can synchronize his trading account through his devices and keep trading in any of his either a mobile phone or his laptop with no restrictions.
In order to earn good money through your user must scan through stocks to have an understanding of the metrics and sell or buy at the right time. This feature helps your user with it.
Revenue Model of Robinhood Like Platform
A Robinhood like stock trading platform does not charge any extra fees from the user for trading. But that does not mean it does not earn money.
The Robinhood clone solution comes along with a lot of premium features for your users. These premium features are most attractive and tempting to the users to pay for it. These Premium features include loans to trade, investing tools, interest for the fund in the app, and lending stocks purchased on margins.
In-app Ads are a common method to earn money by any app. Your Robinhood-like platform loots money by placing in-app ads too.
As the name suggests, Robinhood Clone can’t be just earning money through in-app ads and premium features. However, it is an app with no brokerage fee. You can earn a substantial amount of money through payments for order flow. “Payment for order flow is a method of transferring some of the trading profits from market making to the brokers that route customer orders to specialists for execution.”
The stock market has always been the fort of the rich, and outsiders have felt it challenging to enter this arena. But with the digitization of trading, individual traders hope to spot a chair on their name in it. Launching a white label trading and investment app like Robinhood in this scenario will allow the individual traders to follow your lead.
Become the hero that Robinhood couldn’t
Launch a Free Stock Trading Platform Like Robinhood With Us
At AppDupe, we know that our customers are Entrepreneurs and keeping them succeeding is what will make us stronger. So, we promise you, Life Time Updates free of charge. Yes, we know that Apple and Google keep coming out with new versions of their mobile OS's and other companies we clone from also keep updating their features and UX to stay up-to-date. We will take care of that for you, leaving you to do what you do best, Win!
Is this legal?
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