Young Traders Are Taking ‘Big Financial Risk’ on Investment Apps
- U.K. regulator examines impact of investing on new cohort
- Retail trading in stocks and cryptocurrencies soared last year
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Britain’s market watchdog warned that popular investment apps are exposing young consumers to big financial risks by drawing them into unsuitable cryptocurrency and other speculative investments.
The Financial Conduct Authority published research on Tuesday that found 59% of investors in high-risk products would face financial hardship if they took a significant loss on their positions. More than four in ten investors, the FCA found, did not acknowledge that losing money was one of the risks of their actions.