Gamification is rapidly reshaping how people consume information and engage with the world. It uses strategies such as clear goals, instant rewards and engaging visuals to make everyday tasks more enjoyable, often in a digital setting.

The COVID-19 pandemic nudged consumers to embrace no-contact, instant gratification experiences in an increasingly digital world.

Businesses found that gamification attracts new customers while keeping the existing ones engaged. As evidenced by the meteoric rise of the Robinhood investment app, even trading platforms haven’t been able to escape the pull of gamification.

While trading gamification attracts new and younger investors to financial markets, a key question arises: do digital engagement strategies shape investor behaviour?

In recent years, fierce competition among online brokers has pushed them to stand out with features beyond lower fees. To boost trading activity, many brokers have implemented gamified features ranging from vibrant colours and celebratory animations, to social ranking boards and frequent price alerts.

My recent research shows that these strategies are particularly effective for new investors with lower financial literacy. While it’s effective at attracting users, gamification can lead inexperienced traders to make poor decisions by magnifying their behavioural biases.

My co-researchers and I studied the........

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