I was just looking at some random UK stocks but I suddenly got really confused and have’t seen this before. On a stock like Royal Mail it costs currently £1.75 per share on Freetrade, however I notice it really costs £175 per share. So why is Freetrade able to offer a share at a 100th less of the cost. On other platforms like Plus 500 and Trading 212 it is the actual cost of £175.
It’s pound vs pence.
I’ve only worked with US stock, so I have no idea how pound vs pence works.
1 pound is 100 pence.
100 pence = £1
Same as 100 cent = $1
Some places show the share price in pence
175 pence is £1.75
Ohhhh, I see. I didn’t know the UK stocks were in pence. I was reading the stock in £s.
This is one thing I actually like about Freetrade as it uses real world values rather than stock world values, although as you’ve found it does make a bit of a strange transition when you look anywhere else.
Yeah it was weird at first, but it makes sense to have it display in the real world value.