It would be good to have aim listed stocks on board - where there is no stamp duty for true “free trading”.
What is AIM?
The Alternative Investment Market (AIM) is a sub-market of the London Stock Exchange (LSE) that is designed to help smaller companies access capital from the public market. AIM allows these companies to raise capital by listing on a public exchange with much greater regulatory flexibility compared to the main market.
From the website of the London Stock Exchange:
“AIM is the most successful growth market in the world. Since its launch in 1995, over 3,600 companies from across the globe have chosen to join AIM. Powering the companies of tomorrow, AIM continues to help smaller and growing companies raise the capital they need for expansion.”
I agree, I would like to do short term trading with small amounts of money for fun, playing earnings calls etc… It’s called Freetrade, not Freeinvest. The LSE stocks that have 0.5% stamp duty will wipe out any profits, AIM stocks would definitely be interesting.
For my actual longterm investing i just put it all in index funds and don’t try to pick individual stocks.
I think Freetrade will be useful for medium term swing trading, but if you are day trading and scalping amounts small enough for the stamp duty to wipe out your winnings you would probably want to use a leveraged product. Freetrade have said they won’t be offering leverage.
US stocks do not have any tax on purchasing (equivalent to Stamp Duty Reserve Tax) but there is a 15% witholding tax on dividends received (thanks to Freetrade’s W-8BEN form, otherwise it would have been 30%!), which is paid before you get the dividends so you do not need to worry about it.
No, all of our trades are carried out via the RSP network & reported to the LSE
I wouldn’t want to disappoint anyone who’s not using our service for long term investing & might want us to build functionality that wouldn’t be useful for investors because we won’t. But if you’re happy, we’re happy!
There will be practical challenges with introducing AIM stocks to freetrade. Liquidity is often thin and spreads are wide, so a daily ‘large’ market order at 4pm is likely to be disadvantaged, especially when market makers catch on