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> "It's an explanation but doesn't explain why other stock brokers didn't impose the same limitations" Other brokers did impose trading restrictions on GME (an
by Reason077 6y ago
> "It's an explanation but doesn't explain why other stock brokers didn't impose the same limitations"
Other brokers did impose trading restrictions on GME (and other stocks) around the same time as Robinhood. Webull, M1 Finance, Public, and E-Trade all halted buys of GME.
Others, including Interactive Brokers, TD Ameritrade, Schwab, and Trading 212 implemented restrictions such as halting options trading and greatly increasing margin requirements.
- ashtonkem 6y agoWebull, M1, and Public all use Apex for clearing, and Apex declared a halt of buying GME; it wasn’t the brokerage’s call. The decisions by IB, TD Ameritrade, and Schwab all seem pretty prudent to me. Reducing client leverage in that situation is the right move.