Troubled stock trading app Robinhood has narrowed down the list of restricted stocks on its platform, but still has big restrictions on stocks like GameStop (GME).
According to his websiteRobinhood has updated its list of restricted stocks to eight stocks, including GME, AMC, BlackBerry, Express, Genius Brands International, Koss, Naked Brand Group and Nokia. Robinhood previously restricted trading for a whopping 50 shares on January 29 CNBC reported.
Under the new restrictions, Robinhood users will still only be able to buy one share of GameStop in addition to five options contracts. AMC trading is limited to 10 stocks and options contracts.
Robinhood users who already hold a larger number of stocks or contracts will have to sell their holdings to open more positions, the company said:
“If you already have a greater number of shares or contracts than the above limits, your positions will not be sold or closed. However, you cannot open more positions in each of these securities unless you sell enough of your positions so that you are below the respective limit. “
Robinhood struggles to maintain its trading services as the r / Wallstreetbets Reddit community pumped stocks like GME to new all-time highs. On January 28 Robinhood has suspended GME purchases after the stock skyrocketed 1,400% from about $ 20 on Jan. 12. On January 29 also the company temporarily disabled direct deposits for cryptocurrency purchases, citing “extraordinary market conditions”.
Then the United States Securities and Exchange Commission hinted it looked into the Robinhood platform, referring to concerns about “extreme price volatility in the trading prices of certain stocks.”
Robinhood’s decision to discontinue GME has been widely criticized in the trading community, with at least 100,000 negative reviews appear on Robinhood’s page in the Google Play Store. Despite Google’s subsequent move to scrap thousands of negative reviews with its fake review tracking system, the Robinhood app’s rating is still limited to one star, with 294,954 reviews posted at time of publication.
Amid the ongoing problems, Robinhood users launched the “#robinhoodboycott” tag on Twitter, urging merchants to remove their holdings from the platform. Robinhood isn’t the only company facing trouble from GameStop’s short squeeze, though. On January 30, online trading platform IG Group Holdings said that it will limit new positions on GME and AMC due to “extreme volatility” in the market.