scorecard
  1. Home
  2. stock market
  3. news
  4. Robinhood, Webull, M1 and these other platforms have resumed trading of GameStop and AMC shares

Robinhood, Webull, M1 and these other platforms have resumed trading of GameStop and AMC shares

Harry Robertson   

Robinhood, Webull, M1 and these other platforms have resumed trading of GameStop and AMC shares
Stock Market3 min read
  • Robinhood, Webull, M1 and other platforms said some GME and AMC trading would resume.
  • Robinhood put in place purchase limits and tightened margin requirements.
  • Platforms warned that they may have to tighten restrictions on GME and others on Friday.

Robinhood, Webull, M1 and other platforms have lifted curbs on activity after limiting the buying of shares and options in companies such as GameStop and AMC on Thursday in response to a Reddit-driven frenzy.

Some platforms said their clearing systems could not withstand the huge volatility, while others cited a desire to prevent customers losing money.

The moves infuriated day traders and helped send the GameStop, or GME, price tumbling 44.29% to $193.60 at the close.

Here's what Robinhood, Webull, M1, E-Trade, Trading 212 and others were saying on Friday morning.

Robinhood

Day-trader favorite Robinhood said that it will restrict the number of purchases users can make of certain popular stocks on Friday.

For example, it said in a statement that users will only be able to increase the number of GameStop and AMC shares and options contracts they hold by a limited amount.

Robinhood on Thursday disabled trading in stocks such as GameStop, AMC and Nokia, allowing users to close out positions only.

The app said it would "make adjustments as needed" on Friday.

Webull

Webull said on Thursday afternoon that GME, AMC and KOSS "are no longer restricted". That cleared the way for trading to resume on Friday.

The no-commission platform on Thursday stopped purchases of GameStop, cinema chain AMC and headphone-maker Koss Corporation "due to extreme volatility" and pressure on its clearing firm.

Read More: A chief investment strategist breaks down how the GameStop saga could upend long-standing practices on Wall Street - and shares her 4-part advice for navigating the frenzied trading environment

M1 Finance

M1 said on Thursday that its clearing system had given it the green light for trading to resume through its app. "Trades will go through at our window normally," it said on Thursday evening.

The trading platform had stopped trading in GME, AMC and KOSS, saying its clearing firm Apex Clearing had forced its hand.

Public

Public, which also uses Apex as its clearing firm, said on Thursday that users would be able to buy GameStop, AMC and Koss shares.

E-Trade

E-Trade has resumed all trading, as it said it expected to on Thursday in a statement to The Verge.

The popular platform stopped customers from buying shares in GameStop and AMC on Thursday, according to media reports and traders posting on social media.

Interactive Brokers

Interactive Traders has stopped the purchase of options on GameStop, AMC, Koss, BlackBerry and others, but stocks can still trade.

On Thursday night it tweeted a statement saying it "will continue to monitor market conditions and may add or remove symbols as may be warranted".

Read More: MORGAN STANLEY: Buy these 17 stocks with strong earnings that are expected to outperform into 2022 even if the broader market sinks

TD Ameritrade

TD Ameritrade has continued to allow customers to freely make basic buy and sell transactions. But it has tightened some restrictions on shares and options trading in GameStop, AMC, Bed Bath & Beyond, and others.

As well as basic buy and sell transactions, customers can also make long calls and puts.

But all covered call and short put trades may only be placed with a broker. And investors cannot borrow against the restricted stocks to buy more shares. All the details can be found here.

TD said it "may also implement additional restrictions on the opening of option trades that expire Friday, January 29".

Charles Schwab

Charles Schwab is part of the same company as TD Ameritrade, and it said the same restrictions apply.

Trading 212

Trading 212 on Friday enabled the trading of GameStop and AMC again. But it warned about "the high risk of long execution disruptions for both BUY and SELL orders caused by the extreme market activity".

Trading 212 - which is very popular with UK day traders - had curbed trading on Thursday.

Read More: As Redditors flood the stock market, UBS breaks down 6 options strategies investors can use right now to protect their portfolios

Freetrade

Freetrade said on Friday that it has had to disable all buy orders on US stocks. It said "a sudden and unexpected decision by our FX provider, and their bank, to limit our volume of trades" was to blame.

eToro

eToro said on Friday that it had re-enabled trading in GME, after its liquidity provider gave it the green light. Yet it warned that market conditions meant it "may need to introduce restrictions to GME and other stocks at very short or no notice".

eToro had curbed trading of GameStop on Thursday, telling users they could only sell or hold the stock.

Revolut

Trading on Revolut resumed as normal on Friday, although the company continues to monitor the situation.

This article previously said TD Ameritrade had halted the purchase of shares such as GameStop on Thursday, but it had in fact only tightened up its rules, including by adjusting margin requirements.

READ MORE ARTICLES ON


Advertisement

Advertisement