Free-stock trading pioneer Robinhood and Interactive Brokers said that in some cases, investors would be able to sell only their positions and not open new ones. Brokerages, including Robinhood, announced an unexpected restriction on GME trading that also covered several other “meme stocks” popular with the group of Redditors. Interactive Brokers said: "As of midday yesterday, Interactive Brokers has put AMC, BB, EXPR, GME, and KOSS option trading into liquidation only due to the extraordinary volatility in the markets. Both brokerages raised margin requirements on certain securities. I thought we had a free market. A class-action lawsuit has been filed against stock trading app Robinhood amidst the fallout of the Gamestop fiasco that has unfolded over the past few months. Robinhood is a stock trading app that touts “commission-free investing.” And what’s going on … Market reaction "Either #Robinhood allows people to trade freely in the market or they will lose millions of users #ToTheMoon #GME #AMC #NAKD," one twitter user wrote. Robinhood's reversal Friday once again unleashed an army of small investors behind this week's dramatic squeeze on Wall Street hedge funds, seen as a showdown between so-called amateur … The wild rollercoaster of GameStop's stock price is not over yet. First ameritrade blocks AMC and GME trades, now you can't buy anymore options expiring this week. All Rights Reserved. Robinhood Restricts Trading. A survey of 1,300 people found that 77% believe that Robinhood's restriction of some stocks in January was market manipulation. And we are concerned about the financial viability of intermediaries and the clearing houses," Peterffy said. Amid twitter threats about a class action lawsuit against Robinhood, law firm ChapmanAlbin LLC announced Thursday it is "investigating claims on behalf of Robinhood users that were affected and suffered losses as a result of investing in Gamestop or AMC through the Robinhood brokerage platform.". However, Robinhood has now placed restrictions on the trading in such high-flying stocks. Robinhood has posted a defense over its decision on Thursday to restrict stock purchases. "We now need to know more about @RobinhoodApp's decision to block retail investors from purchasing stock while hedge funds are freely able to trade the stock as they see fit," she tweeted. TD Ameritrade and Charles Schwab raised margin requirements on Wednesday. Robinhood's reversal Friday once again unleashed an army of small investors behind this week's dramatic squeeze on Wall Street hedge funds, seen as a showdown between so-called amateur … S&P Index data is the property of Chicago Mercantile Exchange Inc. and its licensors. Robin Hood is the English legend of the guy who took from the rich and gave it to the poor. The trend instantly halted and started a collapse downwards, before picking up a bit, especially after some retail was allowed back in. There should be a class action lawsuit. These requirements exist to protect investors and the markets," Robinhhood said in a blog post. Robinhood did not respond to a request for comment. Robinhood trade restrictions prompt anger after 'Reddit rally' upended stock markets ... Stock for aging bricks-and-mortar US computer game store Gamestop traded between $112 … Sign up for free newsletters and get more CNBC delivered to your inbox. Now let’s go back to our hypothetical experiment. The Reddit crew is banding together to rally certain stocks in what some say is pushback against the Wall Street establishment. We will continue to monitor market conditions and may add or remove symbols as may be warranted.". Migliaccio & Rathod LLP is currently investigating Robinhood Markets and Interactive Brokers Group Inc. for complaints of market manipulation in regard to shares of GameStop (GME), AMC Entertainment Holdings (AMC), Nokia (NOK), Blackberry (BB), … Robinhood customers took to Twitter to express their outrage surrounding the decision. Robinhood Restricts Trading to GameStop, AMC, Nokia, Blackberry, and even the cryptocurrency Dogecoin. Citadel and Point72 have infused close to $3 billion into Gabe Plotkin's hedge fund to shore up its finances. Robinhood is letting users trade all stocks without restrictions again. Market data provided by Interactive Data. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell My Personal Information | Ad Choices  Robinhood Markets Inc. reduced the number of companies with trading restrictions to eight from 50, ahead of Monday’s trading session, according to an update on its website. Robinhood told clients in a blog post that it would close out some positions automatically if the client was at risk of not having the necessary collateral. By banning customers free access to the market, the message is clear: you are a second-class player, you are not allowed to win. The Menlo-Park, CA based said it plans to allow limited buys of these securities on Friday. The company imposed the stock-trading restrictions Thursday citing "recent volatility." Offers may be subject to change without notice. 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