Stock trading apps have seen a surge in new users as retail investors signed up to buy shares in GameStop (NYSE:GME) and AMC Entertainment (NYSE:AMC) amid the short squeeze rush.
Robinhood experienced a global 747% increase in downloads from the Apple Store between January 26 and 28, however it gave in to competitors after it halted trading in GME, AMC and half a dozen other stocks, citing concerns about volatility and regulation.
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Users migrated to Fidelity Investments and Webull, whose downloads rocketed 1,411% and 1,528% respectively between January 27 and 29.
In the UK, Freetrade downloads jumped 287% in those same days, while eToro rocketed 197% between January 28 and 30 after Freetrade announced its FX Broker was no longer providing coverage to help sales of US stocks.
“We have seen that in the past week certain apps have been able to rise and take advantage of a once-in-a-lifetime opportunity to potentially secure their place in the hearts and minds of consumers, and the industry, as the key player,” said Tim Armes, Client Services Director at Airnow Data, which completed the research.
“Reputations can be built and destroyed in a matter of days, and that has a real-life effect on a company’s success. By not delivering the service an impatient consumer base expects, companies such as Robinhood and Freetrade can quickly lose their position to other apps that are more than happy to fill the void and deliver the needed service.”