AMA: Ask our CEO Adam your questions about our upcoming crowdfunding round 🗣

I really hope we get this answered on Friday

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Hi @adam

Can you share some numbers?

  1. How many existing users?
  2. What is the split between IOS and Android?
  3. How many orders are being executed weekly/ monthly?
  4. What is the split between paid/queued orders?
  5. What is your 12 growth forecast for number of users /number of trades?
  6. How many current employees? and how many do you plan to add in next 12 months?

Cheers

:slight_smile:

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Can you gave any value to current shareholders for A & B for what you value them at pre-crowdfunding?

  1. If you are at liberty to share, what is the proportion of ISAs across all accounts?

  2. What do you anticipate to be your key revenue stream? Alpha, ISA or something else?

  3. 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?

  4. 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?

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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.

Cheers,

Alex

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How do you plan to make any money off the users who only use basic orders and do not pay for an ISA or for Alpha?

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Hi @Alex-r89
Feel free to follow the link and vote
☑ [Feature Request 🔧] Desktop/Web Interface

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Hi Adam,

I don’t have a question, just wanted to let you know I love what you & your amazing staff are trying to achieve.

Viva la stock broker revolution :freetrade:

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Where do you see free trade going in the next year, 3 years & 5 years?

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I used to see VC firms as pure evil but I listen to the 20 minute VC a lot and see the value they can add in many situations. At the moment Freetrade has first mover advantage in the U.K. and there is an argument that large amounts of capital deployed at this stage could allow the team to take full advantage.

I get the attraction of bootstrapping a unicorn without VC involvement but, given the crowdfund ask is only 1 million ( and I appreciate they’ll get way more), is the hiring and scaling going to be fast enough to avoid Robinhood or Revolut stealing your breakfast? There is an alternate path here where a large amount of capital is brought to bear and things scale faster. I’m really interested to see how this round develops

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Hi Adam :wave:

There’s a lot of people of the opinion that Freetrade should offer a roboadviser type service so people can just add money every month to a preselected bundle of etf, stocks etc. Are there any plans to offer something like this for those who just aren’t interested in researching and picking the investments themselves?

Happy Easter

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Freetrade Adventure “fund”: 100% VWRL
Freetrade Build: 70% VWRL 30% VGOV
Freetrade Secure: 30% VWRL 70% VGOV

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image

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I know the 1.5% fee for exercising pre-emption rights isn’t levied by Freetrade… But is there any way to circumnavigate this?

Having said that I am not opposed to the fee itself, just the clumsy way it has been applied to existing investors exercising their pre-emption rights. The current choices are pay the fee, or accept dilution, neither is appealing. As such I would like your thoughts on how Freetrade can protect their existing investors from these after the fact charges.

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I’d keep it simple and do something like:

  • Freetrade Simple ISA

Which is 100% VWRL (or some mix with bonds if required - freetrade knows best). I’m not convinced people know how to judge their lifetime risk in one moment, or that uk bonds are significantly safer anyway. Better to keep it simple - the whole point is the customer doesn’t want choices.

It could be a separate product aimed at people who have no idea what to invest in, don’t want to pick stocks etc. Just pick simple ISA, set up a monthly payment and watch your money grow. It’d be a perfect offering for a freetrade-monzo integration too for the circa 2 million monzo savers not familiar with freetrade.

Since we’re asking questions, I guess mine is - what would you do to target savers who currently feel more comfortable with a robo-advisor? Would you consider offering some simple product like this?

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Are you hoping to break your previous record on speed of funding? Seeing that total rocket up was something else.

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Is there a cap on this round?
Why do you only offer B shares, and not A shares?
Do you plan on bringing in a VC? What is your general position on VC investment?
Why country will you open next?
How is Brexit affecting your business? When do you plan on opening a subsidiary in mainland Europe in order to avoid risks.
Can you share key metrics like CAC, #tx per user, #customers, #app installs, revenue, LTV?

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A “stocks & shares savings pot” provided by Freetrade, within the Monzo app could be great!

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How much revenue do you make per user and what is the forecast for this over the coming years?

I have several thousand £’s invested through the app, but looking at the pricing schedule, I don’t think you’ve even made 1 penny off me. I only have a basic account and execute basic trades (Compare our plans | Freetrade). There are probably other users that are the same.

Are there other ways that Freetrade generates income, i.e. investing cash in accounts, selling user trading data? I belive Robinhood does both of these.

Is this article exhaustive in terms of how you make money? It states the “main revenue streams” http://help.freetrade.io/about-freetrade/how-does-freetrade-make-money

Waiting for @adam

image

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