Freetrade Competitors

Yes the cards in Next Up aren’t yet a Work In Progress.

The cards move from right to left as they get closer to completion, which is slightly unusual to be fair :slight_smile:

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There’s a good quote from an Evarvest chat below, I don’t think you can compare against a business which has only ambitions yet.

FT mentioned they’ve paused adding stocks to focus on finishing off the new platform :+1:t3:

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When i first read the title of this thread i thought it was about an actual competition. Thinking oohhh i might enter and win some free shares in a company then was disappointed it was about a different type of competition lol. Maybe Freetrade should launch a competition. Any voters agree!!!

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Copycats:

PayPal is exploring a stock-trading platform for its U.S. customers

i noted
"
In order to offer stock trading to customers, it’s possible PayPal partners with or buys an existing broker-dealer as part of this plan. According to one source, PayPal has held already discussions with potential industry partners.

Still, one source familiar said it was unlikely that the trading service would roll out this year."

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A post was merged into an existing topic: How brokerages make money - or why payment for deal flow is OK

As for me Interactive brokers are cheaper for all accounts now, but they just do not have transfer option yet

Also new InvestEngine are cheaper too

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And this is a good thing.

InvestEngine. You’ll probably find they add more paid options as time goes on (they’ll have to) however, they have a specific market, namely those looking only to invest in ETFs or managed portfolios.

Likewise interactive brokers also uses a different pricing model, and has a large number of account types and fee structures. Their ISA from what i remember has a £3 a month platform fee, free if you make trades, but trades are also £3 per trade minimum. They also only allow one withdrawal per month free, and subsequent withdrawals are £7.

Different options for different needs and the best option will depend on the individuals requirements

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IB have £3 pee trade only for UK/EU stocks, while US stocks start from just USD 0.005 per share.
Also
IBUK will automatically convert currencies when trading non-GBP denominated securities. To do this, IBUK will engage in “spot” currency transactions on your behalf in order to settle your buy orders or convert the proceed of a sell order. IBUK will base the exchange rate off the spot exchange rate at the time of trade 0.03% fee.

And let’s remember that you have access to all markets - HK, Australia, Japan, Singapore, etc

its $0.005 per share, with a minimum of $1 per trade + regulatory fees unless you choose to use their other fee structure which has an entirely different set of fees.

As i said, different things for different people. a fixed fee platform has benefits and drawbacks just as a tried and % fee platform has its own.

Of course, IB has been around for over 40 years they have a well matured platform. (they of course all have their own separate fee structures that youll need to calculate)

Id be interested to know what you’re looking at in terms of trades per month, etc. that IB has come out cheaper?

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For US stocks IB will be much cheaper. So I think they are a great choice for those who prefer active trading.

My personal choose is passive investing so InvestEngine will be better choice. Unfortunately I do not need anything from freetrade in terms of paid features except for trades/commissions cost.

Anyway I prefer to stay with FT for now.

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IB is an interesting one. If you are into US stocks and heavily into them, they may be cheaper.

I suspect about 15-20% of my portfolio is US and 5% is EU. The rest is UK. If you are into a lot of UK stuff the £3 fee per trade might not be great.

IB will work for some and not others

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Does anyone know which Freetrade co-founder back Koia? Can’t see it on crunchbase.

The co-founder who got fired and went to Revolut:

Early backers of Koia include Monzo co-founder Gary Dolman and Freetrade co-founder Andre Mohamed, who didn’t take part in the latest round.

From an earlier article:

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I don’t see Chip as a competitor to Freetrade,but I do like the Co-founder of Chip Simon Rabin

Interactive Investor (ii) are reducing some of their trading fees.

Their pricing strategy remains, in my opinion, totally ridiculous. You need to decide “what kind of investor you are” i.e. To choose the most cost effective plan you need to know in advance how many trades you will make in a month and what type of shares you are going to buy (Investment Trusts, US, Other Foreign Markets etc). It just seems to be setup to confuse their customers.


That from 1 September 2022, we are making some changes to our pricing.

In Investor and Pension Builder plans, and for customers who are Friends and Family members, the charge for UK and US trades will reduce from £7.99 to £5.99.

Customers in ii’s Investor service plan will continue to get their first trade free each month. Customers in ii’s Super Investor plan will continue to get their first two free trades each month. From 1 September the expiry date on these free monthly trades will move from 90 days to 31 days.

For customers on Super Investor service plan, we are reducing the cost of non-US international shares from £9.99 to £5.99 per trade. UK and US trade costs will remain £3.99.

Free monthly regular investing across all of ii’s plans remains unchanged for funds, ETFs, investment trusts and popular UK shares and ii continues to not charge any exit fees.

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They continue to have number of special offers: https://www.ii.co.uk/special-offers. Competition is good.

This is a surprising statement to me. ii’s fees are relatively straightforward and are a fixed fee structure. I don’t see it as particularly confusing. A higher fee gets you cheaper trading

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Agree competition is good, and ii’s trading fee reduction is likely a response to the growing number of low cost brokers.

For ii, one plan gives you two trading credits, a lower cost plan gives you one trading credit (which now expire in 1 month rather the previous 3 months). To choose the best value plan, you need to know how many times you might trade in a month and what types of equities you are likely to buy. Just my opinion, but I don’t like this approach.

Edit: Their special offers look decent though.

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