The recent trading frenzy centered on GameStop Corp and other “meme” stocks is sparking a wave of investor interest in start-ups aiming to mimic the success of Robinhood Markets Inc, whose no-fee brokerage app has helped drive a trading boom.
The fresh investments are coming even as government regulators ramp up scrutiny of Robinhood and others involved in the GameStop trading. A U.S. congressional committee on Thursday grilled the chief executive of Robinhood and a YouTube streamer known as"Roaring Kitty," among others, as it probes possible improprieties, including market manipulation.
U.K.-based Freetrade.io told Reuters by email that its user numbers last year grew six-fold to 300,000 and that it had raised a total US$35 million, including from a crowd-funding round from over 10,000 customers.