The SEC warns against investors falling prey to fear-of-loss pressures
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Robinhood is adding a social-media platform to its app where users can share trades and follow other investors.
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The feed will confirm that trades are real, showing when a user entered and exited positions.
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About 10,000 customers will get access early next year, with a wider roll-out to come.
Robinhood Markets, the app best known for making zero-commission trading mainstream, is now trying to become Wall Streets answer to Reddit and X. The company announced it will launch Robinhood Social, a built-in network that lets investors post their trades, follow others, and even track the market moves of high-profile figures like Meta CEO Mark Zuckerberg and former House Speaker Nancy Pelosi.
The social feed looks and feels like other platforms, but with a twist: every trade posted will be verified by Robinhood. That means users can see exactly when someone entered and exited a position a major difference from the rumor-driven world of stock forums, where its often unclear whether a trade actually happened.
Raises FOMO risk
Social media is already blamed for an epidemice of FOMO (Fear of Missing Out)--the emotional urge to invest in assets, like stocks, because others are profiting from them, driven by the fear of missing out on potential gains.This psychological phenomenon can lead to impulsive and irrational decisions, such as chasing popular trends without proper research or buying at high prices, potentially resulting in financial losses and negatively impacting investment portfolios.
The Securities and Exchange Commission (SEC) hosts a website page urging investors to "Say no to FOMO."
"You may see your favorite athlete, entertainer or social media influencer promoting these kinds of investment opportunities.You may see your favorite athlete, entertainer or social media influencer promoting these kinds of investment opportunities. Although its tempting, never make a decision to invest based solely on their recommendation," the agency cautions.
Beta test for 10,000 users
Robinhood Social will display a posters performance stats, including profit rates and other metrics. Posts can cover stocks, options, crypto, and even prediction markets. And if users see something they like, they can click a ticker symbol in the feed to trade it instantly.
The company says about 10,000 users will be invited into the beta in the first quarter of 2026, with broader access coming later.
The move taps into a retail trading culture that already lives online, where everyday investors swap tips, chase trends, and occasionally coordinate headline-grabbing stock surges like the 2021 GameStop frenzy. By bringing that activity inside its own app, Robinhood is betting it can lock in more engagement and more trades.
The brokerage has momentum on its side. A roaring bull market has sent profits higher, Robinhood stock has more than tripled this year, and the company recently joined the S&P 500. Its also leaning into crypto, announcing plans to build its own blockchain and offer tokenized U.S. stocks overseas, while expanding into traditional businesses like banking and managed accounts.
If youre a Robinhood user, your trading feed may soon look more like a social network part brokerage, part message board. That could mean easier access to crowd-driven trade ideas, but also raises the stakes: investing FOMO might be just one scroll away.
Posted: 2025-09-10 15:06:36