It would be good to have aim listed stocks on board - where there is no stamp duty for true “free trading”
centamin- has no stamp duty
Depends how many you buy. Seems to work on the total value of the order. For example I bought 39 shares in Debenhams at 4p each and it was 1p stamp duty on the total order.
I can’t stress enough how important listing AIM shares are; they’re the next Apple,ARM etc
You are quite right - and there is no stamp duty so it is true “free” trading
I agree, I would like to do short term trading with small amounts of money for fun, playing earnings calls etc… It’s called Freetrade, not Freeinvest. The LSE stocks that have 0.5% stamp duty will wipe out any profits, AIM stocks would definitely be interesting.
For my actual longterm investing i just put it all in index funds and don’t try to pick individual stocks.
Unfortunately the name’s a bit confusing we’re building a service for long term investors, not traders.
We’re unlikely to ever have everything you’ll want for this.
But we’ll be great for this
What do you think Freetrade's mission is? :dart:
I think Freetrade will be useful for medium term swing trading, but if you are day trading and scalping amounts small enough for the stamp duty to wipe out your winnings you would probably want to use a leveraged product. Freetrade have said they won’t be offering leverage.
That makes it sounds like day trading is a very difficult game.
Well most day traders lose money, so I guess it is. Scalping is taking lots of very short term small profits. I guess if stamp duty is an issue he must have been talking about scalping
I was just being cheeky! It looks like US stocks have no fees and no tax though? Just checked them on the app.
I didn’t even think that deep into it, I’m just looking to do some fun ‘trading’ (gambling) with a few hundred pounds, ideally without paying fees/tax.
US stocks do not have any tax on purchasing (equivalent to Stamp Duty Reserve Tax) but there is a 15% witholding tax on dividends received (thanks to Freetrade’s W-8BEN form, otherwise it would have been 30%!), which is paid before you get the dividends so you do not need to worry about it.
Good to know - thanks Vlad
Does anyone know if there’s a good FTSE AIM ETF anywhere?
The nearest I can see is the iShares MSCI UK Small Cap UCITS ETF however that is still LSE based.
Do any of our orders get executed by darkpools like it’s being claimed by robinh**d?
Plus why should you care what type of trader one chooses to be as long as they’re using the platform?
No, all of our trades are carried out via the RSP network & reported to the LSE
I wouldn’t want to disappoint anyone who’s not using our service for long term investing & might want us to build functionality that wouldn’t be useful for investors because we won’t. But if you’re happy, we’re happy!
There will be practical challenges with introducing AIM stocks to freetrade. Liquidity is often thin and spreads are wide, so a daily ‘large’ market order at 4pm is likely to be disadvantaged, especially when market makers catch on