But the thing I find most astounding is that they hope to compete with a weaker value proposition! I asked questions on the Seedrs page and the CEO said they have no plans to offer fee-free trades.
Whoās gonna want a paid underdog product when market leaders are free? Itās like trying to build an Amazon competitor today with 10-day delivery. I bet their cac will be sky-high.
The social features might seduce some, but they obviously belong to the nice-to-have category. Plus eToro already does a good job at that so whatās the incentive to switch?
Feels like the USP āuniting the worldās exchangesā was written for investors, not users. It might sound good at first, till you realize youāve seldom encountered a real person complaining about ālack of exchange unification in the worldā.
That wonāt help SEO eitherā¦
According to the Evarvest CEO, 63.5% of the global population is between the age of 18 and 35. Think about it for two seconds and youāll see you unreasonable it sounds. But sheās the CEO (yeah, like a company this size has a CEO) and keeps repeating this because she read (probably misread) it somewhere. If thatās the level of attention to detail and scrutiny of data, I dread to think what else lurks.
According to world population project (2012), 16.3% of world populations is 14-24 years, so a bit of a stretch to assume that 24-35 years adds another 45%-ish. Would like to know her source.
Even if it were true, most of that population would be in the underdeveloped world where populations are skewed towards younger, but where GDP and disposable income is much lower.
Yes, she adds in her analysis that 89% of them are investors. Iāve commented that a high proportion of them (the actual number) lives hand to mouth and donāt have a bank account, along with my thoughts on the 63.5% number, and have no response.
It doesnāt matter what her response is: sheās quoted this multiple times without questioning it, and Iām not going to invest in someone who hasnāt got the critical reasoning capability to question such a stat. Probably has a hockey stick showing 1 million percent growth in customers to 500 billion.
Geographical launch pattern seem mental as well, they seem to think they can enter whichever region they choose at will, irregardless of regulatory differences and complexities - and all for a legal fee of Ā£75k in total. I wonder why RobinHood and others havenāt figured this one out.
They claim to use the licensing of their partners to go global at a rapid scale, if thatās the case then they will be heavily reliant on intermediaries so their commercial model wonāt stack up against FreeTrade who are all about cutting out the middle-men, rather than introducing a new one.
In all fairness, videos like that do not necessarily mean the app is complete up to this standard. It could be the case that everything has been drawn to match the style it is designed to be upon completion.
It would certainly be interesting to see what it is like once private beta will be available
Perhaps it is easier to offer so many stocks when a partner firm facilitates the orders and charges a tiny proportion due to their economies of scales? Hopefully, that will be the case with Freetrade once larger volumes come into play