SEC ‘Gamification’ Study Ups Reporting Threat for Online Brokers

Online brokers offering engaging and game-like trading features in their apps face potentially heightened disclosure requirements.

The Securities and Exchange Commission, concerned that intuitive and possibly addictive trading apps may fuel more adverse trades and raise conflicts of interest, is increasing its scrutiny of companies like Robinhood Markets Inc., Webull Financial LLC, and their rivals.

The agency Aug. 27 asked for comments from the public on whether online brokers’ disclosures to retail investors are adequately explaining any efforts to influence trading. The request also sought comments on disclosures about brokers’ conflicts of interest, as they are required to act in ...