FCA Concerned Over Gambling Aspects of Trading Apps
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The UK Financial Conduct Authority has warned operators of trading apps over aspects that are similar to gambling.
FCA has concerns over gambling-like aspects of share trading apps. It has warned operators to conduct reviews of their design features. There are concerns about in-app badges, celebratory messages and points when users conduct trades. There's also concern notifications about the latest market news can have a negative impact on users.
FCA has found that trading apps with certain features make people more likely to invest in high-risk products. Some users show indicators similar to problem gambling. FCA believes that some product design features could be contributing to problematic, even gambling-like, investor behavior.
FCA wants to conduct more research on the use and design features of trading apps. It wants the information to help it better understand the financial vulnerabilities associated with people using these types of apps and their financial decisions.
