For decades, investors looking to add a new asset to their portfolio would talk to their broker or scour financial publications before parting with their hard earned money. Today, many younger investors turn to social media platforms like YouTube or X where they can find helpful tips—but more often a passel of predatory scammers shilling dubious assets they may not even have invested in. It’s a problem, but one Robinhood says it is poised to fix.
On Tuesday, the trading giant announced a new app feature called “Robinhood Social” where users can follow prominent traders and, if they wish, mimic their trades. This sort of activity, known as “copy trading” or “mirror trading,” is common in Europe and other jurisdictions but is largely restricted in the U.S., partly for regulatory reasons. This has driven a more informal version of the practice on social media.
