Your Trading App Looks Like a Gambling Shop. Regulators Have Noticed.
Regulators are scrutinizing trading apps for gamification, citing evidence that such designs lead to worse investor outcomes.Summary
Regulators are increasingly focusing on the design of trading apps, moving beyond traditional concerns like leverage and disclosures. The Financial Conduct Authority (FCA) published empirical research in April 2025 showing that users of high digital engagement apps trade significantly more, suffer larger losses, and exhibit problematic behaviors similar to gambling. This was followed by IOSCO's final report in May 2025, which established global expectations that gamification features like rewards and instant gratification can negatively affect risk evaluation. While industry groups like SIFMA argue that existing frameworks are sufficient, regulators are coordinating actions across the FCA, IOSCO, and ESMA, signaling a shift toward treating trading apps as behavioral systems that may require new forms of oversight.
(Source：Financial And Business News | Finance Magnates)