Robinhood says users have made $25 billion through trades on its platform - but one influential retail investor warns its easy-to-use interface could spark panic-selling if stocks take a tumble

REUTERS/Dado Ruvic/IllustrationRobinhood's IPO documentation reveals that approximately $25 billion has been made by its customers.One prominent retail investor warned that the interface makes it easy for investors to panic-sell.Robinhood's tendency to turn red when stocks fall could lead to panic-selling, she stated.Subscribe to our daily newsletter 10 Things Before The Opening Bell.Robinhood's mission of "democratizing finance for all" via a mobile trading platform that charges no fees has brought in new investors and helped them make more money. However, one prominent retail investor warns that the easy-to-use interface could cause panic selling if there is a market drawdown.Robinhood's most recent IPO paperwork shows that customers have made approximately $25 billion in trades through its platform.Kayla Kilbride, financial content creator, stated that the app's simple interface, commission-free trading and mobile-facing platform have "broken down barriers to entry for investment." Although she prefers platforms that offer more indicators for trading riskier options, she says Robinhood is a great platform. She said that her 131,000 Tik Tok followers, many of them new investors, love Robinhood's "simple" way to invest.Kilbride said that the interface makes it easy to trade, but inexperienced investors may be able to panic-sell in a downturn.In a telephone interview, she stated that "I'm so anxious." "I'm grateful that there's an influx of people in retail trading. But I don't know how many new traders feel secure enough to survive dips. Or any crash.Robinhood gained popularity at a time when stocks are still at all-time highs. Robinhood's cofounders have written that more than half of their customers are first-time investors. Although the idea that new traders will not be able stomach a market crash may seem old, Kilbride stated that Robinhood's interface is simple, and your portfolio will turn red if you have stocks that are falling.She stated that although there is an inflow of money into the market, she was still concerned that people will sell their investments and get scared by investing. "I believe that just as much money has come into the markets as there has been, there will also be as much money going out. That's why I prefer other platforms that can provide other indicators of stock price movement.According to the creator of financial content, Robinhood's interface has a gamification.There are two main indicators of Robinhood: the colors red and green. It is not enough to be able to make informed buying decisions, as red incites fear. You should stop if you see a red light. She said that if you see a green light, you can continue, but this is not the way it works with trading.For many years, regulators and legislators have been critical of Robinhood's gamification approach to investing. The brokerage app removed one of its most controversial features in March: the confetti animation. It appeared after users' first trades, first steps with cash management and successful referrals.Robinhood Learn, an investment app that provides financial education and tools for increasing financial literacy, has been created by the co-founder. In a letter that was attached to Robinhood's IPO filings, the co-founder stated that the app offers education and incorporates safeguards into its products in order for customers to be in the best possible position.