Freetrade Competitors

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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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Many of these new UK competitors are not directly comparable with Freetrade yet. They mostly have only US stocks and equally important for me, do not offer an ISA or SIPP. Some do not have FSCS protection.

If and when they do start offer an ISA account etc, then I think I’ll have a hard choice to make, to either move my account or split my investments across multiple providers.

I’m curious to know how Robinhood will make money - as PFOF is not allowed in the UK but that is their approach in the US.

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Users planning on depositing any meaningful sum of money on these alternative trading platforms will certainly have to look into financial protection available. I can imagine adoption through curiousity will be quite high. I’m sure I’ll try out WeBull at some point!

Freetrade will certainly have to get more competitive with its interest rate on uninvested cash to justify the monthly subscription fees compared to peers as they start to offer a wide range of products in the UK.

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Think its important to compare apples with apples in this scenario. £11.99 for what Freetrade provide is good value for money in my opinion. If mutual funds and LISA / JISA is added it pushes it to a further level.

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I think the value question depends on how much you have invested. If you have £1,000, you’re looking at 14% a year; £10k’s 1.4%: £100k’s 0.14% and so on.

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Elephant in the room, Trading 212 is the primary competitor to Freetrade.

Freetrade’s USP is crowdfunding, and the loyalty that brings.

There’s not a lot that other start ups can compete on.

Interactive Brokers is another big competitor imo.

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According to Freetrade themselves (who they compared themselves to in the crowdfunding deck), they see their competitors as the likes of HL, AJ Bell, ie brokers who provide SIPPs and who don’t do CFD trading.

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They’re hardly going to compare themselves to a broker which offers more features for less.

It’s one thing to refuse to enter a race to the bottom on price but this refusal to acknowledge T212 as a key competitor has always concerned me.

I’m certain many, if not most, of the customers leaving FT are going to T212.

I think FT is burying it’s head in the sand.

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I don’t believe T212 offers SIPPs so they’re not offering more.

Some of these probably aren’t the sort of customers Freetrade want, ie fee paying, larger portfolios.

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