Freetrade - any feedback?

milton1970

Looking at Freetrade for a bit of investing fun outside of isa & SIPP 

Understand that it is zero commission so assume the gain on wider spread - anyone any experience of how wide ?

Does it allow international market trades ?

Any feedback on Freetrade appreciated

TIA

M

GeoffTF

Where does Freetrade say that it loads the spread? They certainly cannot load the spread without making it clear that they do that. I believe that they make their money from Freetrade+, ISA and SIPP fees, and FX commission.

Retirebefore50

It's spot rate plus 0.45% FX on non UK shares. I have an ISA and GI account. 

They offer a large number shares (but not all) and add regularly to the sphere of available stocks /funds. The free account includes free trading and availability of certain stocks. They have a Plus version which includes AIM stocks. They charge £9.99 per month.

You can also buy fractional amounts as well. 

Easy to use interface. 

I also have a HL account (LISA/SIPP and old ISA). I prefer FT for the low costs as I can invest smaller amounts with no or low fees. Their "stock universe" is on their website:

https://freetrade.io/stock-list#stock-list-table

maxsteam

It's important to know that trading is not free. Yes, there is spread but it shouldn't be loaded on mainstream products. A while ago I looked at the prices/spreads quoted on different platforms

https://forums.moneysavingexpert.com/discussion/comment/78565630#Comment_78565630

While other platforms clearly quoted accurate bid and offer prices, Freetrade only gave an "indicative" price, rounded to the nearest penny. It's fine for a bit of fun I suppose but I wouldn't use it for anything serious.

wmb194

milton1970 said:

Looking at Freetrade for a bit of investing fun outside of isa & SIPP 

Understand that it is zero commission so assume the gain on wider spread - anyone any experience of how wide ?

Does it allow international market trades ?

Any feedback on Freetrade appreciated

TIA

M

The spreads it offers aren't wider than any other broker. 

wmb194

maxsteam said:

It's important to know that trading is not free. Yes, there is spread but it shouldn't be loaded on mainstream products. A while ago I looked at the prices/spreads quoted on different platforms

https://forums.moneysavingexpert.com/discussion/comment/78565630#Comment_78565630

While other platforms clearly quoted accurate bid and offer prices, Freetrade only gave an "indicative" price, rounded to the nearest penny. It's fine for a bit of fun I suppose but I wouldn't use it for anything serious.

This is definitely something that can be improved but you can work with it by using a live data feed and/or obtaining quotes from another broker before placing an order. I often use iWeb to do this and so far the prices have always matched.

Thrugelmir

Freetrade is simply building it's customer base by offering commission free trades. Not going to last forever. In marketing parlance a loss leader. Where they do make money is by putting customers cash balances on overnight deposit. 

Be interesting how their systems cope in the next market frenzy. 

numbersrule

I believe that a company offering financial trading services may make some money from the width of spread they offer, but the way I see it, from the point of view of the punter/consumer/customer it shouldn't be a significant consideration or concern.
The most significant influence on gains / losses for the consumer is the choice of market traded as opposed to any choices about which providers offer different spreads.  Gains from good decisions can far outweigh marginal ticks.

Alexland

Thrugelmir said:

Be interesting how their systems cope in the next market frenzy. 

I tried Freetrade in 2019 just to get the sign-up incentive and it was very basic and didn't meet my needs but I don't recall anyone mentioning any operational problems with them during the 2020 covid crash unlike the duplicate trade problems at HL or the very slow and/or unable to login problems at AJ Bell and iWeb. Andy Bell even apologised again for what happened that day in his end of year email.

wmb194

Alexland said:

Thrugelmir said:

Be interesting how their systems cope in the next market frenzy. 

I tried Freetrade in 2019 just to get the sign-up incentive and it was very basic and didn't meet my needs but I don't recall anyone mentioning any operational problems with them during the 2020 covid crash unlike the duplicate trade problems at HL or the very slow and/or unable to login problems at AJ Bell and iWeb. Andy Bell even apologised again for what happened that day in his end of year email.

It's improved a lot since 2019 and in my experience it held up fine during the panic last year when iWeb et al melted down.

Edit: Actually there was a day when it had problems with US markets but it said this was to do with its intermediary broker having problems, IIRC Interactive Brokers.

wmb194

Thrugelmir said:

Freetrade is simply building it's customer base by offering commission free trades. Not going to last forever. In marketing parlance a loss leader. Where they do make money is by putting customers cash balances on overnight deposit. 

Be interesting how their systems cope in the next market frenzy. 

Yesterday it raised another £8.91m via Crowdcube so it should last a little longer.