Freetrade - any feedback?

moneysaver1978

What sort of feedback are you looking for?

I signed up to Freetrade in early 2020 (as 212 wasn't accepting new customers), the app is intuitive and easy to use. I was able to purchase different types of stocks/shares. Haven't been tempted by their Plus subscription offerings as my investments are low and speculative.

maxsteam

numbersrule said:

I believe that a company offering financial trading services may make some money from the width of spread they offer

The platform lacks transparency but they should not be loading the spread. However, they can make money by matching buyers with sellers, without using the market, and by taking money from market makers in return for passing business to them.

GeoffTF

maxsteam said:

numbersrule said:

I believe that a company offering financial trading services may make some money from the width of spread they offer

The platform lacks transparency but they should not be loading the spread. However, they can make money by matching buyers with sellers, without using the market, and by taking money from market makers in return for passing business to them.

maxsteam said:

numbersrule said:

I believe that a company offering financial trading services may make some money from the width of spread they offer

The platform lacks transparency but they should not be loading the spread. However, they can make money by matching buyers with sellers, without using the market, and by taking money from market makers in return for passing business to them.

Paying for order flow is not permitted in the UK. They are not likely to be able match buyers and sellers with real time trades.

wmb194

maxsteam said:

numbersrule said:

I believe that a company offering financial trading services may make some money from the width of spread they offer

The platform lacks transparency but they should not be loading the spread. However, they can make money by matching buyers with sellers, without using the market, and by taking money from market makers in return for passing business to them.

So far all of my trades with Freetrade have been on the LSE. 

Only in the US. 'Payment for order flow' is illegal in Britain, Canada and most (all?) of the EU. 

Thrugelmir

wmb194 said:

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.

Investors ultimately will demand a return. The company will have a strategy that it's working towards.

Thrugelmir

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.

Client numbers have grown across all the platforms. Also a question of whether their retail service providers can handle the volume (e.g.in certain stocks).  At least the main platforms have dealing desks. If one wishes to dispose of a sizable amount of stock. 

wmb194

Thrugelmir said:

wmb194 said:

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.

Investors ultimately will demand a return. The company will have a strategy that it's working towards.

Yes, of course, it goes without saying. In the meantime you make hay whilst the sun is shining.

numbersrule

Thrugelmir said:

wmb194 said:

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.

Investors ultimately will demand a return. The company will have a strategy that it's working towards.

Freetrade raised their recent funding round via Crowdcube ie crowdfunding.
Crowdfund investors have next to no rights.
So the Freetrade investors are not in a position to demand anything.
All they can do is sit and watch and hope their guess works out OK for them.
I know because I am a Freetrade investor via Crowdcube. 

RemotecUK

I signed up for FreeTrade a few weeks ago.

My personal opinion so far:

Positives

Negatives
- Phone only - can't monitor my accounts on my PC where I sit every day.
- Spammed by notifications and emails.
- Limited shares - I wanted to look for specific share but it wasn't on their platform. Was told I could discuss it on the forums and/or vote for it's inclusion in the platform.

Felt more like a social media site than platform for serious investors.

I've been really looking for a way to diversify from the "legacy" investment platforms I use but I'm afraid this isn't it for me.

sevenhills

RemotecUK said:

Felt more like a social media site than platform for serious investors.

I've been really looking for a way to diversify from the "legacy" investment platforms I use but I'm afraid this isn't it for me.

Sounds like the supermarket equivalent of Aldi