Expanded free and Plus stock universe 🔥 18 SEPTEMBER 2020

I really hope you don’t use this analogy for every subscription you sign up for…

An alternative view: before you even start investing you are down £120 for the year.

1 Like

It’s all relative. £120 for a 25K portfolio may be represent decent value whereas a 5K portfolio it would be a big drag.

The analogy he uses is also relative. If you’re on £15K income then spending £10 at the pub every Friday is going to impact your personal finances more than if you were on £50K.

As he said “Personal, I think” I would say £120 would not impact him as much as it might smaller investors. (assumption)

1 Like

I’m pulling some numbers to identify this kind of thing but it’s right. If your just starting out and hold a small vanguard portfolio in an ISA it’s more cost effective at Vanguard for the first £20k or so.

For a GIA Freetrade is a no brainier at any amount, and for SIPP Freetrade will (when released) quite quickly be more efficient than the competitors (assuming no drawdown cost)

1 Like

Making a wild assumption here, but I would assume most portfolios on Freetrade are sub 25K or even sub 10K.

1 Like

Then the £3/m ISA or GIA would fit these accounts perfectly unless they have a specific want?

1 Like

I think it the problem is that many ETF and share are put behind a pay well now. If was not the case them yes £3/m ISA or GIA would fit these accounts perfectly. I think plus should be only for low cap ETF (e.g. FTSE AIM), low cap share and added functions. Let high / medium cap ETF and high / medium cap share like in 100 FTSE, 250, FTSE ALL, say in free.

For new investors the vast majority of the kind of EFTs they’d go for are free. I get that’s not accurate for every new investor. IShares, Vanguard, and invesco are all under free for example.

It’s a balance, lots of factors make it difficult to give good examples as there’s just so many.

Your average investor with a small holding is the kind of person who’s likely got a vanguard account or a HL account investing monthly into and ISA or SIPP into maybe only a single fund or just a couple of funds and a trust. The Freetrade ISA provides a step up for them at a certain threshold (not very much).

What happens if you try and buy a plus stock but you haven’t signed upto plus does it reject or sign you upto plus.Just asking as some of the plus stocks don’t have the plus sign next to them.