The Financial Conduct Authority (FCA) has issued a warning to trading app operators to “review design features, including those with game-like elements, which risk prompting consumers to take actions against their own interest”.
Millions of people bought shares for the first time during the pandemic using trading apps. But some encourage risky behaviour and use manipulative programming to keep users engaged.
The regulator found a range of app features “of concern”, such as falling confetti celebrating a stock trade, the use of trader leaderboards, frequent push notifications with market news and the setting of default investment amounts.