Send us a request and we will contact you as soon as possible.
Recently, Gary Gensler, who serves as chairman of the SEC, came out to warn retail investors who use special brokerage applications in their activities that provide for no commission, because broker-trading apps are aimed at increasing trading. In particular, those brokers who are engaged in the sale and purchase of shares. So, let’s analyze the key aspects of the information received regarding this issue.
Let’s talk more about this situation next.
As recently as Wednesday, Securities and Exchange Commission Chairman Gary Gensler issued some warning to retail investors who trade using brokerage applications that offer no commission. In particular, those brokers who are engaged in the sale and purchase of shares.
In an interview with CNBC’s Jim Cramer, the head of the US Securities Regulatory Authority expressed concern about the following issue. He considers unreasonable and inappropriate incentives between investors and the services they offer in the stock markets.
Gensler, being interviewed by Mad Money, spoke about the following: “The entire public interested in investing should be especially vigilant, because broker-trading apps are aimed at increasing trading.” In addition, he adds: “Trading is not good, but investing is a great solution. That’s what the statistics show.”
In particular, Gensler’s comments were aimed at answering a question regarding Reddit memes that appeared in January 2021, when significant attention was drawn to the possible gamification of the investment field.
Gensler also stressed that while Americans are subject to some kind of “coding” of behavior every day when using certain technological developments, special consequences can materialize when it comes to finances.
“Because through active work, brokerage applications and robot advisors significantly increase the income of their developers, the main task is to increase the number of trading operations,” says Gensler.
Among other things, Gensler also notes that the SEC is carefully studying behavioral cues and the phenomenon of gamification in order to trace all the steps taken to ensure an adequate level of investor protection. In addition, it was said that recently the number of people interested in investing has significantly increased.
“Of course, it’s good to see that more and more people are thinking about their future and are trying to study the field of investing, as well as the corresponding market,” Gensler said. “However, spreading the potential on everyday small trades significantly reduces future returns.”
If you are interested in purchasing a company, ELI Deal service proposes you a lot of different businesess for sale in various categories. In particular, recommend you to pay attention to offers in the following directions: AEMI/EMI (Authorized Electronic Money Institution license), Forex Broker License, Hedge Funds, and many other fields.
Our professionals will provide you with complex advice and full commercial support. Contact us anytime.
Perhaps you relish a thought of starting a business in Great Britain. Then, buying a shelf company could be the first thing coming to your head. Being already incorporated, such “ready-made firms” have never been used. They’re waiting for their owner who can put them to work. It could be you. For some entrepreneurs, such…
Switzerland has always been known for its stable and investor-friendly financial system. Nevertheless, for the last time, this country has been facing constant international pressure to make sure that the country’s financial strength is not used illegally for money laundering and terrorist financing. For nearly ten years, Swiss watchdogs have made a number of tweaks…
A solid legal foundation is essential in the world of digital assets. A crypto license is a key part of building a trusted business, and as rules become clearer, choosing the right jurisdiction is the first critical step. Many entrepreneurs look for a crypto exchange license for sale to accelerate their market entry. This guide…
Starting a business in Switzerland gives you access to the safe and prestigious market. The first stage in choosing a legal settlement in this country is to decide the suitable legislative structures. This election dictates your fiscal liability, tax status, and daily operations. It sets the course for the future of your firm. While most…
The country’s unusual political organization grants its 26 cantons significant latitude over their tax laws. This generates a competitive marketplace in which there can be wide disparities in tax rates from one jurisdiction to another. Anyone wishing to live, work or invest in the country needs to know about these! Where you settle down is…
The current offshore banking model continues as a very effective measure for the security, diversification, and investment of wealth on a global scale. Extending an off-shore account in the right jurisdiction will provide benefits that range from greater privacy to tax benefits and access to a wide array of acquisition possibilities, depending upon whether one…
The Financial Conduct Authority, also dubbed FCA for short, plays a major role in shaping the British financial system. Its work program sets out the regulator’s priorities as well as its long-term strategy on an annual basis. For 2025–2026, the watchdog focuses on technology-driven oversight, stronger consumer protection, and also financial stability in a rapidly…
Opening a British company bank account has always been an object of interest for firms willing to build trust, access local clients, and also operate trouble-free in the European Union. However, there might be one difficulty. When the ultimate beneficial owners are represented by foreigners, the process can turn daunting. Being under strict regulatory pressure,…
In fact, the establishment of an Electronic Money Institution (EMI) can be a very wise move for the many fintechs out there searching for regulated access to the payments market of the EU/EEA with full passporting rights. The regulator of each country might have a totally different perspective on timelines, scrutiny, supervisory style, and post-licensing…
When it comes to setting up a business, the UAE is right there among the world’s best. The vision of the emirates as a conduit to markets across the Middle East, Africa, and Asia has for time out of mind drawn entrepreneurs and investors alike—from Dubai’s bustling financial districts to the strategic global connections of…
Puerto Rico is one of the few US regions that offers an organized offshore banking structure with meaningful tax incentives. There are two routes available IFE and IBE. They give access to a 4 % tax rate and dividend exemptions for owners from abroad. Nevertheless, these two permits are created for diverse purposes and are…
Nowadays, St. Kitts and Nevis is considered one of the most appealing places for protection of belongings and wealth structuring. The governmental body continues to maintain a low-regulation monetary environment and a steady regulatory climate for businesses for sale. Over the past ten years, it has quietly become a popular place for international companies to…