OSC says gamification is a priority for investor safety

“Making an attempt to foretell these short-term strikes — or worse, attempting to base one’s funding technique on predicting and timing such strikes — has all the time been unimaginable, and within the trendy panorama of high-frequency buying and selling, large algorithmic buying and selling schemes, and now the social-media induced get-rich-quick flavours-of-the-minute being touted on Reddit and traded on RobinHood, we’d argue that short-term methods have grow to be extra hazardous than ever,” he stated.

Enjoying the sport

The members have been in a simulated digital buying and selling atmosphere and got $10,000 in play cash to make their investments.

Those that have been awarded factors in return for buying and selling (factors that had no actual worth) made virtually 4 occasions as many trades because the management group.

The OSC is worried concerning the elevated quantity of trades, on condition that, on common, this has a unfavourable influence on investor returns.

Whereas platforms usually supply zero or low charges for buying and selling, there are nonetheless advantages to them of upper buying and selling volumes. They could obtain commissions from market makers and frequency buying and selling corporations for the order movement, and curiosity on their very own investments funded by shopper deposits.

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