Expanded free and Plus stock universe 🔥 18 SEPTEMBER 2020

Ah oK thank you!

Am sure freetrade will be offering plus free for at least 3 months when they finally launch, they previously offered isa free when that was launched also

No announcement though and that still doesn’t justify the price given what competitors are offering.

Does Viktor and Adam still engage with the community? They used to regularly contribute to customers concerns. It just doesn’t happen anymore.

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Super confused on what Plus is.

I will not pay £120 per year for a smallish isa account.

Freetrade will need to balance what longterm passive investors want as opposed to what regular traders & investors want.

Right now, I have no idea what Plus is and it seems confusing at best.

Personal Cons of FreeTrade right now:
• It takes up too much of my time.
• I cannot simply log in and spread £200 across etf investments in a percentage based format.

The pros of FreeTrade are obvious. It’s just those two cons for me right now.

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IMO this whole discussion about paywalled stocks gets solved in 2 seconds if Plus stocks could be purchased outside of the subscription for a small fee (e.g. £1)

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I couldn’t agree more. It would also save the admin of people signing up for a month at a time. I hope the Freetrade team read this and act on what you’ve suggested.

EVERYONE WHO DISAGREES WITH THE PAYWALL SHOULD LIKE THE ABOVE POST AS A PRACTICAL SOLUTION.

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They won’t announce anything until its officially released, and as we know it’s still WIP and the benefits will only grow eg sipp

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Reading from the forum it seems they are all very busy behind the scenes, and they mentioned previously that they read every single comment and take on board everyone’s thoughts, it’s more productive this way, rather than trying to justify their reasoning everytime someone comments.

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That is a practical solution but I still feel cheated. This sets a precedent: FT can paywall stocks whenever it likes. I know other brokers can change their rules as well but this is a fundamental thing. I would not mind a price hike to £4 a month for the ISA if that means all the free stocks that are free now stay free. I totally accept new stocks being paywalled but would rather see all stcosk available free and advanced features to the Plus plan.

FT is not for daytraders but for people who would not have a lot of money to invest. I doubt many people have over 50k invested already. There was an advice to not diversify that much, like only having 2 companies in your portfolio when you have less than 20k invested and gradually build those two positions. So imagine you are investing gradually let’s say £100/month in one of the 84 stocks and suddenly it is paywalled, you loose the opportunity to invest unless you cough up £10 a month. That is a lot of money for a small investor.

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I actually thought they might implement this small fee on the new order types but I actually would prefer it being implemented on the Plus stocks. It might actually be beneficial for Plus sign ups

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Just to throw my two cents onto the pile of coins that is this thread:

Plus obviously and hopefully isn’t the finished product with what has been announced so far. For me it’s definitely not worth the price tag. £10p/m is just too steep for what’s on offer.

The splitting of the stocks behind a paywall does make sense to me and how they’ve chosen to divide it seems to be one of the best ways they could have done it. :+1:

One of the things that concerns me is the “priority customer service” for Plus. A newbie investor really is not likely to be paying for plus at the start, and when I was starting if things didn’t quite work, or deposits when missing I was nervous about losing my money. Thankfully the Freetrade team are usually pretty quick to respond and look into things. However, if I see “priority customer service” is for the plus members, then as a new investor starting with Freetrade I would be even more nervous. Unless of course I’m still guaranteed help and quick responses etc. In which case, how much better is the Plus priority customer service that makes it worth mentioning as a sign-up incentive?

The features of plus are a bit lacking regardless. Adding some order features is not even close to being worthwhile to me. The potential inclusion of SIPPs would be enough to swing some people and that’s great, but as an investor in Freetrade I am puzzled how they plan to make Plus enticing enough for customers outside the UK if/when they rollout across Europe to make money from the product in other countries with no such features available. The Plus only features would have to be enough to make someone sign up as there would be no ISA or SIPP.

Note on SIPPs: I see on the “Building Freetrade” they are no longer “working on” SIPPs, they are “Exploring” them. So there are those users waiting for the release of SIPPs as a trigger for signing up to Plus, who may have to wait longer than previously thought. Which is another thing Freetrade need to be careful of: As much as I love them, they would have to admit they are pretty horrendous at meeting delivery dates they state. I remember from the AMAs they held that they hate using the word “soon”, but I’ve seen so many features said to be being release “in a few months” or “over the summer” etc. that take far longer to come, or indeed some that we are still waiting on. My worry is that while that’s really not a massive issue when Freetrade is young and growing, once they start asking people to cough up £10p/m then they need to be absolutely certain they can deliver on time with features they say they will. Otherwise they will start turning people off and driving them away from paying for the service, or indeed away from Freetrade altogether.

For me personally, I’m an investor in Freetrade and love what they have created. I love now being able to control my investments in shares without having to pay commission for a flat £3p/m ISA fee. The Plus product for me would have would be enticing at a slightly lower price tag. When Freetrade have UK fractionals rolled out across all their products, if they added auto invest/pies etc. to Plus and had a price tag of £5p/m I honestly probably would sign up. (I also note now even Non-US fractionals has moved from “working on” to “Exploring” on the building Freetrade page.)

Apologies, this post kind of dragged on a bit :sweat_smile:

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You can get access to Superhero in the UK?

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Yeah it’s a bit tricky to see what FT wants to be.

For passive ISAs you are paying £36/year which is fantastic value for a £100k+ ISA (4bps) but for a £10k ISA it’s 36bps which isn’t so great (although I guess you only really need an ISA for larger accounts anyway)

When you start trading however the opposite is true, you are now spending 45bps for any non-UK trade. This is great for a small account but for a large account it means your trades are costing £10 each anyway (which is comparable to a lot of premium products and well beyond something like 212)

Value Small Large
Trading Good Bad
Trading (UK) Good Good
Passive Mixed Good

Now you add FT+ into the mix and it doesn’t do anything for small accounts (because the relative cost is too high) and it doesn’t really solve problems for large accounts (because you are still spending 45bps).

So from my perspective Freetrade+ is basically the Canada Square Bets account for penny stocks.

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This would be a low friction path to new subscribers too. If someone spends £5+ on one time purchases for paywalled stocks then Plus might start looking like better value.

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This is a great point - FT will need have a crystal clear and transparent process to manage routine changes to index composition

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I can but it wasn’t especially easy. I also have Robinhood but that was a real nightmare.

I like this idea but there needs to be more of an incentive to move to Plus - £5 per trade (buy & sell) for restricted stocks and I think it works.

I understand the frustration of those who hold AIM stocks that may now be paywalled - but, I’d rather Freetrade cater to those who want to pay rather than those who want to use the service for free.

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£5 is too much, you are getting close to legacy broker prices there. the £1 would be fine. it would mean getting some income off people who don’t want to subscribe to Plus without necessarily being expensive enough to make them go elsewhere

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This may not work though when others in the same marketplace are offering things for “free” or better value. As an investor that concerns me - where is FT trying to pitch itself? The name and ethos purports to be at the free end.

When I say free I mean the seen cost to the customer - there are income streams eg FX/interest from customer deposits/share lending are some possibilities where income could be derived.

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