FMA wants to prevent ‘Robinhood style’ trading

Online trading platform Robinhood restricted trading in Gamestop shares after retail traders targeted the stock. (Image: Getty)

Dan Brunskill

Thu, 05 Aug 2021

The Financial Markets Authority is happy with how retail investment platforms are operating in New Zealand but is watching for poor behaviour seen overseas.The regulator conducted a survey of 2,000 platform users to give it a better idea of how people were investing and what risks they faced.Results from the survey were largely positive, showing the majority of investors were not day-trading and were highly motivated to learn about building wealth.However, it also found investors were strongly influenced by the fear of missing out (FOMO) and th...

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