A few questions relating to competition, if you don’t mind:
How will freetrade outcompete it’s rivals (Revolut, Robinhood, BUX stocks, etc)?
Do you believe this is a winner takes all market, and why (not)?
I ask because I personally don’t think broker loyalty is a thing, so it becomes a race to the bottom as investors just switch to the cheapest platform. From what I can gather, Robinhood offer instant trades for free, their premium product offering out-of-hours trading and margin trading as incentive. This undercuts freetrade (alpha) and is a large threat in my view.
If you are at liberty to share, what is the proportion of ISAs across all accounts?
What do you anticipate to be your key revenue stream? Alpha, ISA or something else?
HL claims to have business with 30 market makers to facilitate competitive pricing per share. How many does Freetrade use? Are there any plans on expanding this network? Any particular details/dates you could share?
The same article contains the following quote:
According to the LSE’s fee schedule, retail brokers pay nothing to execute deals for the first six months of joining the exchange, and after that pay just 0.1 per cent on the value of a deal to execute a trade.
Does it mean that any (even instant) transaction in excess of £1,000 will be loss-making for Freetrade?
I’m not sure if I should post a question here, nor is my question directly related to the crowdfunding, but I was wondering if there are plans to create a web version of the application? Is this crowdfunding likely to contribute towards something like this?
I know quite a few people who enjoy trading stocks, but do not have the ability to use a mobile phone in their 9-5 jobs.