UK trading app Freetrade halts purchases of U.S. stocks

The website of U.Ok. stock trading app Freetrade.

Freetrade

LONDON — British fragment trading app Freetrade informed purchasers Friday that it had disabled purchases of U.S. shares.

Freetrade blamed the quit to U.S. stock purchases on a switch by its currency trade provider and their bank to restrict the platform’s trading quantity. Freetrade uses U.Ok. fintech company Currencycloud for overseas trade transactions.

Barclays made an surprising resolution to drastically restrict the amount of overseas trade transactions it would possibly perhaps perhaps well direction of for Freetrade, a particular person familiar with the subject informed CNBC. The actual person preferred to remain nameless as they weren’t licensed to be in contact publicly.

Barclays wasn’t straight readily accessible for comment when contacted by CNBC.

The switch affects purchase orders that had been placed sooner than the U.S. market originate, Freetrade said, whereas promote orders will moreover be restricted for a brief timeframe at the market originate.

“We bought no warning of what we take into accout an extremely heart-broken resolution,” Freetrade’s co-founder and CEO Adam Dodds said in an announcement Friday. “We’re deeply sad with this resolution and we’re doing the complete lot likely to rectify the grief.”

“Because of high volumes, we won’t be ready to answer to particular particular person queries about this right this moment.”

Freetrade, which has extra than 300,000 users, says it’s skilled a surge in job this week on account of untamed volatility in equity markets.

A series of heavily-shorted shares, at the side of GameStop and AMC, contain skyrocketed this week as a gush of beginner investors inspired by the Reddit neighborhood WallStreetBets piled into such shares, leading to massive losses for some hedge funds.

U.S. investing app Robinhood on Thursday was criticized by users after limiting trading in thirteen shares, at the side of GameStop and AMC. The company on account of this truth said it would possibly perhaps perhaps well resume trades in those securities.

Robinhood said its resolution to restrict trading was well-known in repeat to contain a study capital requirements mandated by the U.S. Securities and Substitute Fee for dealer sellers.

“These requirements exist to offer protection to investors and the markets and we lift our tasks to contain a study them severely, at the side of by the measures we contain now taken as of late,” the company said.

Robinhood moreover restricted trading in cryptocurrencies on Friday, halting quick deposits for crypto purchases “on account of unprecedented market prerequisites.” The switch came as bitcoin and meme-inspired token dogecoin observed colossal rallies.

The SEC on Friday said it was reviewing “inaccurate price volatility of obvious shares” and would “act to offer protection to retail investors” from capability market abuse or manipulation.

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