Freetrade Competitors

This is really hugh!
Trade Republic and Scalable Capital will need to change their business modells significantly. No Commission Free brokering as of June 2026 anymore.
Really good news for Freetrade.

Where are the VCs? :slight_smile:

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Can you explain why this is good news for FT, I’m really trying to understand the situation better

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I think it a way which those companies make money (So Order Flow if I’m not mistaken is analysis of Trades which Tradees on there Platform make)

So if a majority of users make monthly trades on Coca Cola for example you can use that information to make inform decisions on how that share might perform.

Now imagine having Hundred to Thousand of data like that. People would want that data so that probably one of the ways which those companies make money.

If they can’t use that as Revenue, then they have to find another way to make money (aka Monthly Subscription, Charge on FX)

It’s where a market maker pays the broker to route trades to them. Freetrade doesn’t use this so their revenue won’t be affected by this ruling, where companies like Trade Republic do use it, so will lose a chunk of revenue and may need to make big changes to their business model.

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PFOF means a customer would on average get a worse price as the broker routes orders to the market maker which pays them the most (within reason), instead of the one with ‘best execution’ (best price, timely etc) as is the law in the UK.

Trade Republic is able to offer trades at only €1 since it benefits from giving the customer a worse price. The customers still pay but don’t know about it.

Freetrade is extremely transparent on how it makes money and has an opportunity to sell their brand and commission free business model across Europe. Other commission free brokers, like Bux have started charging commission and mandatory €3pm fees. So FT’s model will be highly competitive in Europe.

It means there will be a level playing field for European brokers. Previously German brokers were able to collect PFOF whilst non German brokers weren’t.

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These are good to have features.
T212 has much better ETF availability
For e.g. JPLG

It looks like Webull is entering the fray in the UK. Not the most compelling offer yet: only US stocks it seems and 0.025% commissions after a 90-day zero-commission promotional offer.

That said, the app’s one of the best I’ve used and it’ll be interesting to see how it develops.

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Shares is about to open France (received regulatory authorizations) with the intention to roll-out in the other EU countries. (article only in French)

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Public.com have launched in UK, article mentions Robinhood aims to be here by end of 2023.

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Downloaded and thrown £100 in, for a fractional Tesla share.

Interested to use the Pre-market feature tomorrow. So nice to have a Pre/post market broker in UK!

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Started same time as Freetrade and valued at $1.3 billion?? I’m saying nothing??

Holy I’m not on this thread much but you see lots of brokers opening up I seen adverts on the TV as well of some new brokers as well.

T212 has a great layout and some really great features. I even opened this years ISA with them.
But has anybody noticed the ridiculous max holdings,
I think they announced these changes late last year.
example - gfinity max holdings 202,386 shares, about £150
one media max holdings 3,698, about £190
They limit nearly every single share
I think Freetrade just limit max orders currently at £9,900

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only because of a technical limitation (not handling the ptm levy), you can obviously make multiple sub 10k orders

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This is fair criticism. It’s worth asking T212 to increase the limit for those stocks as they’ll often raise it.

Lower limits seem correlated with less liquid, penny-type stocks.

For example, not too many people are going to be running into trouble with AAPL as you’d have to be placing orders of more than £350,000 or holding more than £6m of its stock.

One thing FT does a lot better is AIM stocks. Execution for stocks that trade on the SETSqx segment is particularly poor with T212. I’d consider buying AIM stocks in a Freetrade GIA instead.

Here we go again.

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I wonder if they will begin by targeting those customers who originally signed up to their waitlist in 2020. They must have kept that information?

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Ty Rehpot,
Found the community page where lots of requests to raise limits have been successful. I have quite a few AIM stocks but my preference is edging back with Freetrade for these stocks.
I still have last years ISA with Freetrade and this years ISA with 212, looks like I will be keeping both for now.

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With so many options available to UK investors, it’s going to be hard to justify paying Freetrade £11.99 a month.

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