Hi all, hope everyone is well with everything going on (stocks and personal life ).
I’m currently writing a paper on the study of commission free investing and how this has developed investment patterns for individuals who use these platforms, has anyone changed the way they invest because of Freetrade?
For example, do you think commission free investing has changed the way the stock market is developing and will continue to develop, with millions of people now being given access to investing, has this benefited or negatively impacted investing? Such as the sudden surge in Tesla , was this caused by ill informed investors who now have an easy access to the market?
If anyone has any comments about anything, please feel free to reply to this thread, would be great to get a discussion going if possible!
Likewise if anyone higher up from Freetrade would like to have a chat, this would be greatly appreciated.
I used to have to stockpile cash and only buy/sell every once in a while and in large amounts to make sure I covered the fees. Now I can buy/sell whenever the time is right, and whatever amount I need and fees don’t need to be a part of my decision.
It also means I can put a fiver down on some super high risk AIM stock for thrills
Great to hear from you Adam,
This is exactly the kind of response I was expecting, I think alot of investors are moving the same way, if you don’t mind me asking how long have you been investing for?
I bought my first lot around 10 years ago, but only placed a handful trades between then and the beginning of this year. Since January, I have been a lot more active.
Glad to be of help, I’d like to read your paper if you are planning on publishing it, if you remember, would you chunk a link in here when it’s done?
Excellent thankyou, Of course, the title of the paper is “A study on the growth of commission free investing and the development of investment patterns with special reference to Freetrade” a fascinating topic I know…
With any democratising process there will be issues. Misinformation normally is the big one. By and large I think opening up the stock market to more people is a great thing.
I want investing to be as normal as saving money, the more ways for people to save/invest/look after their financial well being the better.
This is a stepping stone to more solutions and business models we haven’t seen before. I am very excited to see where it goes, even if it might be a bit ugly in the short term.
Hey Jack,
I totally agree with you, I have been trying to persuade family and friends for a long time that a better financial future comes from being aware of your money and being active with it, rather than leaving it in a savings account. I like the idea of Freetrade adding more solutions to their already great platform to help people. Do you believe that the prices of “trendy” stocks such as Tesla and BeyondMeat have been affected by this influx of new and baby investors?
Personally I think investors try to follow the market and get sucked into the hype. Rather then being the reason for a share price, it’s the reason why we see more aggressive highs and lows.
These stocks are not penny stocks where smaller groups can cause meaningful short term share price shift, these are stocks which are routinely not doing what the fundamentals expect of them. There is much bigger market sentiment, and I think that would exist regardless of commission free brokers.
That said I have no data to back that up! I would be really interested to know if there is any data behind the size of investors on these stocks versus a “normal” stock.
“Personally I think investors try to follow the market and get sucked into the hype. Rather then being the reason for a share price, it’s the reason why we see more aggressive highs and lows”
From what I have found so far, my research would agree with this. However, looking at the volume of shares that where traded for Tesla when we saw the sky rocket pricing, most transactions that where happening consisted of 2 maybe 3 shares being brought in one action which would indicate that individual people in mass where causing the surge in pricing. I do agree with what you have said though and believe that this was an anomaly.
Thank you for your input Jack, it is greatly appreciated.
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and how this has developed investment patterns for individuals who use these platforms, has anyone changed the way they invest because of Freetrade?
, was this caused by ill informed investors who now have an easy access to the market?
