"On Tuesday, the trading giant announced a new app feature called "Robinhood Social" where users can follow prominent traders and, if they wish, mimic their trades. This sort of activity, known as "copy trading" or "mirror trading," is common in Europe and other jurisdictions but is largely restricted in the U.S., partly for regulatory reasons. This has driven a more informal version of the practice on social media."
"The service will display the activities of not just stock traders, but also of those trading crypto, options and other assets. Critically, the company will also require that every Robinhood Social user verify their true identity, and to provide evidence they actually have the portfolios and positions that they claim. This stands in contrast to many of the investment claims on social media, where people regularly post fake or falsified information under pseudonyms."
Younger investors increasingly turn to social media for investment tips, exposing them to predatory scammers and false claims. Robinhood is introducing Robinhood Social to let users follow prominent traders and manually replicate trades without automatic execution. Copy trading is common abroad but largely restricted in the U.S., which has pushed informal versions onto social platforms. The feature aims to surface communities and display trades by well-known investors and Members of Congress, while requiring verified identities and proof of claimed portfolios and positions to counteract fabricated social-media investment claims.
Read at Fortune
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