Freetrade in the news 🗞️

It is alarming that more and more CFD platforms appear to be using share-dealing as a means to acquire more customers on to their platforms,” said a spokesman for FreeTrade

Shots fired at T212 :smiley:

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With an outcome even worse than etoro of course t212 didn’t respond.

Regular Freetrade readers will know the dangers of using these competitors and ultimately what they want you to do…Bleed you dry after you’ve signed up for free share trading with leveraged gambling. Feel sorry for the 76% of their users that lose money not know what they are doing. The regulator really should be doing more.

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CFD trading is risky but surely any trading platform would want returning customers; if they alienate a high percentage who lose money and they don’t return where would that leave the platform as there is isn’t an infinite supply of people who would want to trade this way.

The thing is CFD trading and spreadbetting can provide a similar emotional response to gambling. even if people are losing they still keep going back because there is the chance to win big via leverage. It’s addictive.

To a certain extend Share trading can be, but if you take away the leverage at least you can’t get into as much trouble

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Ok, now that’s boxed off can we have a LISA!

I’m sort of semi joking… well done to the team at Freetrade on the new product launch!

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No joke from me. V keen for a something better and cheaper than Nutmeg! :pray:

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Freetrade mentioned midway. Is this article the result of the journalist thread the other day?

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Her t-shirt is freetrade pink so she’s on brand. Or is that investor swag from R6?

‘Free trading quickly became gambling’: how novice investors get caught out by seductive deals (telegraph.co.uk)

Really curious that 212 never seems to respond to comments whenever they’re in the news these days. I see plus500, etoro etc all responded.

Some very unfortunate examples in that article of how easy it is to end up in a huge hole. I don’t think it would be wrong to say that that same problem can be extended somewhat to normal share dealing especially with volatile very unpredictable penny type stocks that a lot of people essentially gamble on on the word of others online.

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Am I the only one who isn’t paying for digital newspapers and can’t read that stuff behind a paywall? £2 per week that are better spent on stonks :smiley:

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They usually allow a number of free articles per week with an account. (They have to pay the bills somehow)

Basics of the article are around CFDs and how they’re basically gambling. The easy access to them on free brokers with very little friction. And a number of customers who share their unfortunate mess from being prone to gambling and these companies sucking them up into CFDs or ending up gambling from
These CFD brokers and losing tonnes of money

Here’s an excerpt from the end of the article

Freetrade said CFDs were glorified gambling, not investing. Richard Wilson of Interactive Investor, the stockbroker, said users were tempted to sign up by free share dealing but then put under pressure to use CFDs. Andy Bell of AJ Bell, another stockbroker, said commission-free share trading was not viable unless the costs were covered by income from other products such as CFDs.

Plus500, a CFD site, said it always sought to comply with regulatory standards, including those on advertising. IG, another provider, said users could not switch to trading more complex leveraged products without meeting stricter criteria. eToro said 85pc of its customers did not use CFDs and they could do so only if they passed an appropriateness test. Trading 212 did not respond to requests for comment.

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I must say all this press around T212 doesn’t paint a good picture :grimacing:

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Thank me later.

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Yeah I used to invest in penny stocks back in my younger days and lost a lot. Ironically instead of trying to chase after get rich quick stocks if I had just stuck my money in a s&p fund over the last 20 years I would probably be literally hundreds of thousands £ better off.

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Dito,except I gave my money to the bookies for 28yrs.(I started with football coupons at 15)Thank god I managed to stop 12 years ago :pray::pray:

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It’s one of the reasons i think the Freetrade plus option may actually be a good thing in that way. I wonder if brokers shoud be considering prompting more education when looking at certain stocks. AIM market for example maybe should have a first time interruption on the UI to point people to the fact that it is less regulated, and that many stocks are not suitable for them to invest in

edit: in fact one thing Freetrade could do is actually indicate what market a stock is in as currently it doesnt.

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That’s a great idea. The same way as the bookies have been forced to advertise “TAKE A BREAK”

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