{"id":230205,"date":"2021-04-19T10:41:00","date_gmt":"2021-04-19T07:41:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/democratizing-trading-after-gamestop-does-more-need-to-be-done\/"},"modified":"2021-04-19T10:41:00","modified_gmt":"2021-04-19T07:41:00","slug":"democratizing-trading-after-gamestop-does-more-need-to-be-done","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/democratizing-trading-after-gamestop-does-more-need-to-be-done\/","title":{"rendered":"# Democratizing trading: After GameStop, does more need to be done?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a256f9c0f2b4\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a256f9c0f2b4\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/democratizing-trading-after-gamestop-does-more-need-to-be-done\/#A_flawed_business_model\" >A flawed business model?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/democratizing-trading-after-gamestop-does-more-need-to-be-done\/#Are_crypto-powered_platforms_an_alternative\" >Are crypto-powered platforms an alternative?<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Democratizing trading: After <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/game\/\" data-internallinksmanager029f6b8e52c=\"7\" title=\"Game\" target=\"_blank\" rel=\"noopener\">Game<\/a>Stop, does more need to be done? <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-5a136f3a>\n<p dir=\"ltr\"><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/quantfury.com\/\"><img loading=\"lazy\" decoding=\"async\" width=\"1480\" height=\"200\" alt=\"Quantfury\" src=\"https:\/\/s3.cointelegraph.com\/storage\/uploads\/view\/14d7a79ea741024fd6747772186efd9d.jpg\" title=\"Quantfury\"><\/a><\/p>\n<p dir=\"ltr\">Democratizing finance has been a dominant <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">theme<\/a> in recent years \u2014 with companies vying to create a level playing field and give amateur investors the same opportunities that hedge funds and institutional investors enjoy.<\/p>\n<p dir=\"ltr\">There have been some successes along the way. Purchasing stocks is a lot easier now than it was a few years ago. The internet has helped to demystify the equities markets\u2026 enabling anyone to train themselves in technical analysis and access the latest intelligence. The costs associated with gaining exposure to shares have also tumbled.<\/p>\n<p dir=\"ltr\">One of the companies that fired the starting gun on this journey was Robinhood \u2014 named after the storied figure in English folklore who stole from the rich to give to the poor. The platform was built on the belief everyone should have access to financial markets, making investing \u201cfriendly, approachable and understandable for newcomers and experts alike.\u201d<\/p>\n<p dir=\"ltr\">It was an enticing message \u2014 and one that encouraged people to sign up in their masses. But this vision was dealt a massive blow as a result of the GameStop short squeeze, which was spearheaded by the <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Reddit<\/a> forum r\/Wallstreetbets. A band of retail investors was taking on short-selling hedge funds \u2014 driving the stock price from $20 to $483 within weeks.<\/p>\n<p dir=\"ltr\">Rapidly running out of cash to cover these transactions, Robinhood slammed on the brakes and announced that it was suspending purchases of GME stock altogether. Restrictions later followed. This caused a backlash among Redditors, and threats of a boycott, with the company accused of caving into hedge funds.<\/p>\n<p dir=\"ltr\">Dozens of class-action lawsuits have followed, with some even claiming that Robinhood \u201cstole from the poor to give to the rich.\u201d And inevitably, some crypto enthusiasts have pointed to how decentralized finance and digital assets help solve this \u2014 because they actually have the potential to democratize the world of trading.<\/p>\n<h2 dir=\"ltr\"><span class=\"ez-toc-section\" id=\"A_flawed_business_model\"><\/span>A flawed business model?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p dir=\"ltr\">Robinhood is now dusting itself off \u2014 with the company\u2019s CEO apologizing to customers at a congressional hearing and describing the situation as \u201cunacceptable.\u201d<\/p>\n<p dir=\"ltr\">But this isn\u2019t the first time that the trading platform has ended on the wrong side of customers. In December 2020, the U.S. Securities and Exchange Commission charged Robinhood with \u201cfailing to satisfy its duty to seek the best reasonably available terms to execute customer orders,\u201d with the company paying $65 million to settle the charges.<\/p>\n<p>The SEC alleged that \u201cmisleading statements and omissions\u201d had been made in how the company communicated to its customers. This concerned the fact that Robinhood would send customer orders to firms for execution and receive payment in exchange. Although one of the trading platform\u2019s big selling points to customers was the fact that it is \u201ccommission free\u201d \u2014 the regulator said the \u201cunusually high\u201d use of other trading firms meant that orders were often executed at inferior prices.<\/p>\n<p dir=\"ltr\">Even after the savings that users made from paying no commission were taken into account, the SEC estimated that its customers ended up missing out on $34.1 million. As SEC official Joseph Sansone noted: \u201cRobinhood failed to seek to obtain the best reasonably available terms when executing customers\u2019 orders, causing customers to lose tens of millions of dollars.\u201d<\/p>\n<p dir=\"ltr\">At the time,\u00a0the company told Cointelegraph that \u201cthe settlement relates to historical practices that do not reflect Robinhood today.\u201d<\/p>\n<h2 dir=\"ltr\"><span class=\"ez-toc-section\" id=\"Are_crypto-powered_platforms_an_alternative\"><\/span>Are crypto-powered platforms an alternative?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p dir=\"ltr\"><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/quantfury.com\/?pid=cointelegraph&amp;c=news&amp;ad_type=pr\">Quantfury<\/a> says it is aiming to solve the issues seen with centralized trading platforms by offering commission-free trading and investing \u2014 giving people access to real-time spot prices from global crypto exchanges with zero fees.<\/p>\n<p dir=\"ltr\">The platform offers stocks, cryptocurrencies, exchange-traded funds and futures \u2014 adding that it is driven by a determination to be transparent and honest. Quantfury\u2019s trading data is digitized and published anonymously using a smart contract, meaning that the authenticity of volumes on its platform can be easily verified.<\/p>\n<p dir=\"ltr\">According to the brokerage, it also offers a broader range of features \u2014 enabling users to go long and short, benefit from guaranteed execution, and fund their account balances in crypto of their choice.<\/p>\n<p dir=\"ltr\">Leveling the playing field is an issue that Quantfury\u2019s founder Lev Mazur is passionate about. In an article setting out the truth behind retail trading, he wrote: \u201cBillions of dollars are being lost daily by simple folks globally to hazardous trading platforms, whose only goal is to churn and burn their users with manipulated asset prices, as well as both visible and hidden fees.\u201d<\/p>\n<p dir=\"ltr\">Over the past two years, the company says that it has ensured that its users, who call themselves Quantfurians, are not put at a disadvantage \u2014 enabling them to be masters of their own fate.<\/p>\n<div style=\"background-color: #f0f0f0; padding: 8px 21px; font-weight: bold; color:#253137;\">Learn more about <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/quantfury.com\/\" style=\"color: #253137\">Quantfury<\/a><\/div>\n<div id=\"post-content\">\n<p><span style=\"font-size: 12px; color: rgb(169, 169, 169);\"><span style=\"font-weight: 600\">Disclaimer.<\/span> Cointelegraph does not endorse any content or product on this page. While we aim at providing you all important information that we could obtain, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor this article can be considered as an investment advice. <\/span><\/p>\n<\/div>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/democratizing-trading-after-gamestop-does-more-need-to-be-done\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Democratizing trading: After GameStop, does more need to be done? &#8221; Democratizing finance has been a dominant theme in recent years \u2014 with companies vying to create a level playing field and give amateur investors the same opportunities that hedge funds and institutional investors enjoy. There have been some successes along the way. Purchasing&#8230;<\/p>\n","protected":false},"author":1,"featured_media":230206,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS9zdG9yYWdlL3VwbG9hZHMvdmlldy83NmJhMTg4ZDUzNTQ1NTBmNTI3NTc1YjE2NWMwYThmNC5qcGc=.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74867,74863,75239,74868,86706,73711,71407],"class_list":["post-230205","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-altcoin","tag-cryptocurrencies","tag-decentralized-finance","tag-defi","tag-robinhood","tag-investments","tag-trading"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/230205","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=230205"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/230205\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/230206"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=230205"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=230205"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=230205"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}