The UK’s financial watchdog has warned against the use of “game-like elements” in trading apps, saying that they risk leading consumers to take actions against their own interests.
The Financial Conduct Authority on Monday said share trading apps were giving their customers “in-app points, badges and celebratory messages for making trades”, and that people using these features were more likely to “invest in products beyond their risk appetites”. It told operators of the apps to review their design.
So-called gamification has become a bigger feature of trading apps in recent years, drawing the ire of US and UK regulators after last year’s “meme-stock” trading frenzy.