For anyone who is interested, the FT published an article today covering the emerging free trading companies which covers Freetrade
Noooo, can’t read due to paywall
I’ll try another way to read it
Freetrade plans to launch its “Alpha” service — its premium offering — later this year and says it will cost about £7 a month, covering all customers’ costs.
Crowdfunding plays a significant part in the age balance of its customers. About 130,000 of Freetrade’s customers are also investors in the company, and attend regular meet-ups where founder Adam Dodds and other company heads chat through the company’s plans
This seems rather misleading. @alex.s, just pointing out in case Freetrade’s comms team would want to rectify this with FT.
130K users by year end
This sounds like a good development, on the surface it sounds like another benefit of the new Investment Platform, well done Freetrade.
Hopefully the pitch deck will help explain how this impacts the projected profitability of Freetrade.
“It just doesn’t cost us very much to execute a trade. It’s really minimal.”
I recall the price of executing a trade being pennies. Which Nick Bortot ( BigSwingingNick* ) confirms
“Twelve years ago it cost over a euro to do a stock transaction and now it costs just a few cents. The execution of a stock transaction has been commoditised over the past decade. Years from now all mobile brokerage apps will be zero commission.”
*Unsure if this title still stands, or if it was rescinded.
Really enjoyed that article. As the stocks freetrade users can trade in increases it makes freetrades offering even more compelling. Interesting to hear that the alpha fee would be around £7 and not £10 we thought it was going to be. Will be looking forward to the pitch deck to see how that might affect the revenues and last raise assumptions but all in all I think it’s a good move.
If you Google the title you can normally get around it. You didn’t hear it from me…
Just wanted to take the chance to say a big thank you for speaking to Kate for this story Stewart - assuming you’re the same Stewart Vickers - we really appreciate it
My pleasure! Just got to buy into the next round now!
Hear what from you?
That’s ace Stewart, thanks!
Without sounding weird, seeing your surname and picture… any relation to Frankie Poullain of The Darkness?
Hi Stewart, yeah he’s my big brother!
Small world - I was in the Last of Our Kind video!
That’s awesome, just watched it back again now! Nice moves
I’ll say hi to the guys from you!
The article is in the print edition today (FT Weekend 20th April) if anyone wants a hard copy.
Revolut launched in 2015, is also looking to offer a freemium trading service to its 4.7m customers from this summer.
Great, wait to discuss what they’re doing then, when Revolut have actually said what they’re doing
The main drawback of free trading services is that, regardless of their lower fees, they currently offer far fewer resources to investors, a far smaller range of investments than the traditional platforms, as well as a more limited range of tax-efficient wrappers.
Currently is the key word. I’m firmly on the new investment platform hype train. Personally I expect the new platform to have a cup of tea ready for me when I get home from work, it seems that it’s capable of doing so much
The piece has been updated Thanks for flagging!