Some Reddit users behind the recent GameStop stock frenzy are moving away from trading on the Robinhood app after it temporarily restricted trades on more than a dozen red-hot stocks yesterday. They say they're moving to alternatives like Fidelity, Schwab and Vanguard, and encouraging others to follow suit.
Fidelity said it is not restricting users from buying or selling shares of GameStop, AMC or Bed, Bath and Beyond, which were among the 13 stocks Robinhood blocked on Thursday. Fidelity said an "above average" number of users joined its platform Thursday, but it declined to say how many.
Charles Schwab, which owns Schwab and TD Ameritrade, says on its website that it hasn't halted the buying or selling of these stocks, but has placed certain restrictions on them.
Vanguard said that its clients usually aren't day traders, but tend to invest in the long-term. It declined to answer whether it's seen an increase of users over the past few days. It added that it was keeping an eye on the market for "significant movements" and has added certain restrictions to protect clients in "a fast moving market" but kept buying and selling available.
On Thursday, Robinhood halted trading of securities including GameStop, AMC and Bed, Bath and Beyond, later describing it as a "risk-management decision." The decision was met with outrage among amateur investors and some lawmakers. One trader responded by launching a class-action lawsuit against Robinhood. The app now allows limited trading of these stocks.