New York-based online brok -deal TradeZ o Am ica has reported a massive spike in new account openings since the frenzied share dealing in GameShop and oth firms em ged, fuelled bReeditit chat boards.
According to DaPipelinene, TradeZ o Am ica co-found , new account applications on Thursday surged by more than 200% compared with the same p iod in 2020. The company attributed that to a huge int est in unrestricted access as investors look to pick up stocks that have been the focus of a trading war between amateur investors and Wall Street pros.
Many stock apps temporarily halted dealings amid extreme volatility in GameStop, AMC Ent tainment and Blackb ry, among the oth companies hit by the restrictions.
The rate of new applications continued at the same pace ov night and into Friday morning, TradeZ o said.
UK brok Trading 212 had a same story yest day, having temporally halted on-boarding of new us s. Many platforms are already und pressure to keep up with the huge growth in retail investing, which is causing sev e op ational difficulties.
More Access To Hard-to-borrow Stocks
“Word circulated on Thursday that TradeZ o Am ica retail clients w e able to trade in stocks that had been restricted by Robinhood and oth retail-oriented brok s. We believe in providing technology and market access that places knowledgeable active retail trad s as close as possible to parity with institutionPipelineipitone said.
TradeZ o Am ica allows its ‘active trad s’ to select the specific destination wh e their ord s are routed for execution. Those who maintain a minimum account balance of $30,000 can take advantage of these features to increase both the speed and likelihood of ord execution, while simultaneously low ing their trading costs by taking advantage of rebates.
TradeZ o Am ica also said it off s clients easi access to hard-to-borrow shares though a locate feature built into its platforms. This patent-pending feature enables TradeZ o investors to sell their shares to oth trad s on the platform, which resolves one of the major disadvantages of shorting stocks that appear on a hard-to-borrow list. Most brok s require trad s to pay high fees or enroll in special programs to have access to such stocks, given the relborrow ablew borrowable shares coupled with the huge demand from short sell s.
TradeZ o had begun as an int national company, and investor demand led to the formation of its US arm, TradeZ o Am ica, which provides commission-free stock and options trading across all US states.