Freetrade Competitors

Just received an email from Degiro - it’s raising its fees on May 15th. Perhaps a sign of things to come from other brokers too

4 Likes

Well, they had to do it eventually… :worried:

2 Likes

Free is not sustainable long-term, all businesses are in the business of making money.

5 Likes

A great point. Freetrade has brought an element of parity to investment that is currently out of reach to platforms like HL.

1 Like

Lightyear have released their web based trading into Beta.
Users are authenticated using a combination of a QR code from the web page and their mobile app.
Seems responsive but not made a trade yet, as all my holdings are in the US and the market is closed.

5 Likes

Are invest engine going to release a SIPP?

3 Likes

CMC has brought out another feature limit orders

Of all the brokers im wondering if they’re the closest to Freetrade in terms of what they’re trying to do

Also noticed they’ve updated their market data features with a lot of extra info now. They seem to be using morning star to populate this info

1 Like

Ooof I wonder how TradeRepublic’s €5B valuation is holding up?

14 Likes

Looks like a good opp for a well-articulated rant/stream on socials + putting FT execs out to speak on this. @acamp’s time to shine!

5 Likes

T212 has shipped or is shipping a fair few new features which I haven’t seen mentioned yet:

  • multi-currency accounts
  • interest on cash balance (poor rates but it’s something)
  • an API
  • and a 50:50 split on share lending proceeds.
4 Likes

This is massive news.

It’s a shame Freetrade doesn’t have any dry powder to push into the EU, but at least it makes them a far more attractive proposition to VCs in 2024.

2 Likes

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:

7 Likes

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

1 Like

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.

1 Like

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.

4 Likes

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.

4 Likes

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

1 Like