Trading apps warned on ‘gamification’: City regulator tells providers to review features some use to lure customers to buy investments

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The city’s regulator has warned investment app providers to revise in-game features that some are using to encourage customers to buy investments.

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As featured exclusively in Wealth and Personal Finance last week, the Financial Conduct Authority is increasingly concerned that app users are buying investments they don’t really understand and are getting hooked on product gamification.

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Concern: The FCA is increasingly concerned that app users are buying investments they don’t really understand and are getting addicted to product gamification.

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These include points, badges, and holiday messages when they make deals.

Many young investors are attracted to such applications in the hope of a quick profit.

On Friday, Sarah Pritchard, FCA’s executive director of markets, told The Mail on Sunday: “Some features can contribute to problematic, even gambling-like behaviour. We expect all firms to improve their products.”

The regulator’s research shows that trading apps “sometimes play a role in poor consumer outcomes” and fuel “problem gambling”.

It says that of the five apps studied, almost half of the users of two of them invested “potentially in excess of their risk appetite.”

Major trading app providers include eToro and Revolut. Both told the MoS they ensure that new investors understand the risks involved in trading.

Credit: www.thisismoney.co.uk /

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