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

We’re aiming to have balance revenue not tied to one stream. Part of that we want to align our business incentives to the best interest of our customers, instead of having the incentive to push everyone into one type of product where we make money but would not be suitable to all customers.

That said, we anticipate that our top revenue stream in the future will come from monthly subscriptions for accounts other than the Basic starter account.

On HL and other stockbrokers talking about their ‘price improvement service’ and ‘market maker network’, it’s all a bunch of marketing spin. Almost every retail stockbroker in the UK connects to the same network of LSE retail market makers (aka RSPs) and so do we.

When we roll out our new core brokerage platform we’ll expand the venues we connect to beyond the traditional LSE network to include pan-European exchanges like Cboe and other liquidity providers. That should benefit our customers in the form of more venues to find the best execution for their orders.

On LSE exchange fees, that is only applicable for orders executed on the LSE order book. Trades placed through the RSP network are not subject to exchange fees.

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I’d like to be able to open Freetrade as a tab in Chrome, too, but it’s not on the open roadmap yet. For now, we have lots of work to make the app even better, but stay tuned.

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We would still earn some revenue from these customers if they decide to invest in foreign securities (FX) or hold cash with us (interest).

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To the moon :rocket:

You’ll have to wait for the crowdfunding campaign for a longer discussion, or come talk to us on Tuesday.

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I think it’s important to raise the right amount of capital for the stage the business is at. For us, we are lucky that we can still accomplish that through crowdfunding from our community. If/when that is not the case we’d look to consider institutional investment, as you rightly point out, we would not want to sacrifice growth potential for lack of capital to take advantage of it.

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We have no plans to provide advice to our customers, so wouldn’t be building a roboadviser.

What we do have planned are automation tools and the ability to invest in fixed allocation portfolios (and potentially portfolios from other providers). We’re calling it Autopilot internally, what do you think of the name?

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We are big fans of Crowdcube and think 1.5% is a fair fee for their service.

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Autopilot is a dope ass name!

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Yep! Help us out by being ready to push the button on Thursday, I hope Monzo’s 96 second record is threatened :blush:

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Can see this being very popular. I like the name too.

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Thank you Adam. As I said not against the fee itself, just the clumsy way it’s being applied on people avoiding dilution. I said the same to Luke last year. It feels like something old school financial companies would do. There’s also been a few campaigns where the fee didn’t apply, hence being possible :grin:

Love the idea of “autopilot”, great name too.

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Sorry everyone, that’s all the time I have right now, my wife is screaming at me to take the kids to the beach. :pray: I’ll try and get to the rest of the questions tonight.

Adam

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Do you have any plans to integrate ‘autopilot’ with other apps? For example, there could be an auto-investing pot on Monzo, powered by Freetrade?

Also, will you be charging any fees for autopilot?

And, will it be part of the current app, or a new, standalone app?

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Exciting news. I love the name and will look forward to seeing this being added - feels like it could really boost growth and attract some of the money currently sitting dead in Cash ISAs, or overpaying fees for robo-advisors in the belief they offer sophisticated management.

There were some interesting quotes over on monzo forums about this:

Sure as i monitor it and become more knowledgable, I may decide to move away to managing it myself. However as it stand I am very happy with what moneyfarm provides me at what i believe to be a very reasonable cost.

I do think the branding and positioning is so important for autopilot (far more important than the investments chosen), and you’d be competing with robo-advisors and wealth management apps rather than with other stock trading apps. Would be great to see it offered in bank apps to target a different type of saver :wink:

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No info on what we’re currently working on with banks that I can share yet I’m afraid.

In the future, it would be nice to see all your investments in one place although I’m not sure why you would have anything elsewhere. :wink:

Most fintechs/fs firms aren’t trying to do everything so I do think there is scope to be collaborative with other companies that share the same ethos as us.

Traditional metrics like AUM aren’t the biggest deal for us as we don’t charge for custody/earn asset-based fees. A better barometer is how often our customers top up their portfolio, our goal being every month around payday.

What’s scramble mode? :face_with_raised_eyebrow:

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For cases where you are effectively locked in and moving would be too much work.

It could be a good growth feature, a way to aggregate your investments before investing afresh on the only investing app you’ll need :slightly_smiling_face:

A mode that obscures the Portfolio values so you can show the app to someone without sharing your total portfolio size.

Would be useful in cases where I want to demo the app to a colleague, or acquaintance without sharing I have £xyz in cash, or that I’ve invested £xyz in a FTSE 100 tracker, instead they’ll just see I’ve invested in the FTSE 100 tracker.

Hope that makes sense.

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The UK is spoiled for choice when it comes to great crowdfunding platforms (there’s a thread on that) and while we chose to return using Crowdcube for many reasons, the most important is that we’ve been with them from day 1 and all of our crowdfunding investors are already members on the platform.

I’m fantasizing about a Crowdcube x Seedrs x Freetrade in the future, it could be the greatest crowdfunding crossover event in history.

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Re the bid/ask spread, there is absolutely not a hidden commission in there. Check out our best execution policy, we go out to the market to get the best price we can for our customers and make nothing on the spread. No payment-for-order-flow or other BS, either. The price we display in the app is an indicative midpoint from our data provider (a dual bid/ask price would be only indicative, too) as we don’t actually know the price we’ll get for you until we go out to the market with your order.

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:zipper_mouth_face:

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Still early days, but fair to expect something similar to how we have it now where a basic version is free and more advanced stuff comes with the monthly subscription.

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