Trading app app Morningstar has removed a feature that allows traders to trade in their preferred stock exchange in Australia.
Read moreThe app, called Trading Stock, has been in use since March, but has been criticised by trading professionals who say the app encourages traders to manipulate stock prices to maximise profits.
“There’s no way that this is a fair use,” says trading professional Michael Johnson, who uses the app to trade Australian shares.
“It encourages people to manipulate and make money out of the market.”
Mr Johnson says he is one of many traders who believe trading apps like Trading Stock are a breach of Australian law.
“They’ve got an algorithm that says what the market is going to do,” he says.
“And if you look at the data and you look to see if there is anything else, you’ll see the stock is actually lower than it would be if you had gone through normal channels of trading.”
Mr Hutton says it is the responsibility of investors to be “smart” and “careful” about the trading they do.
“If there’s a risk that you’re making money out there that’s your responsibility,” he said.
“I think that the whole industry is very much under the impression that if you have a lot of stock in a particular company, it will always go up.”
A spokesperson for Morningstar says Trading Stock is available to Australian consumers who want to trade stocks for free.
“This is available for Australian customers only.
If you are a trader and want to use trading software like Trading Card to trade, you can use this free trading app to do so,” they said.
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