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UK trading app Freetrade disables orders to buy U.S. stocks

Published 29/01/2021, 15:15
© Reuters.
GME
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By Anna Irrera

LONDON (Reuters) - Commission-free trading app Freetrade said on Friday it had disabled buy orders for U.S. stocks amid a market frenzy that has seen shares of heavily shorted stocks like GameStop (NYSE:GME) surge this week after being pushed on social media platforms.

The London-based startup said in a statement that the move was due to an unexpected decision from its foreign exchange provider and the provider's bank, Barclays (LON:BARC), to limit its trade volumes. An unusual daily spike in activity volumes had triggered the limit, according to a source familiar with the matter.

Freetrade will allow users to sell U.S. stocks to exit existing positions, the statement said.

"We received no warning of what we consider an extremely poor decision," it said. "We are deeply unhappy with this decision and we are doing everything possible to rectify the situation."

The company is the latest trading platform to report disruptions to its service, following a surge in volumes stemming from calls on social media to trade stocks like GameStop and AMC that were being heavily shorted by hedge funds.

Platforms including U.S.-based Robinhood halted purchases of the most volatile stocks, raising the ire of customers.

Launched in 2018, Freetrade has seen new users surge over the past week, with daily customer sign-ups jumping to 30,000 from 3,000 a day on Thursday, according to a spokesman.

It has also been processing record trading volume amounts, it said, far exceeding "vaccine day" in November, it said.

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Latest comments

Nobody is selling their shares and the hedge funds are desperate, stop people buying sonthey can use ladder attacks on already shorted shares behind the curtain to drive price down and make it look like a sell of, the market then opens lower and past stop losses and people are forced out of trades, its all they have to limit the damage when they have to cover their shorts, im not selling and i dont care about the money anymore i just want them to feel the burn for once
So the option for the broker is let their entire business fail, or put the brakes on? Seems fair to me. Plenty of opportunities out there.
Thats why tradings hard all the manipulation from the insiders
Market manipulation! Investigate these crooks! Using retail investor restrictions to short the market! This isn’t playing the market it’s controlling the narrative of them!
Cant belive they are getting away with this ***
Somebody should file lawsuit against them as its not fair trading.
Absolute twats
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