FreetradePlus charged at a % fee for small accounts

Ideas 💡
#1

Just wondering whether FreetradePlus could be paid as an annual/monthly percentage for smaller accounts (<£5,000/£10?)

As i’m new to investing (1 year roughly), my account is small (<£1,500). As i’m looking to invest much more - ETF’s available for plus members (mainly L&G etf’s) would take up a large part of my portfolio.

But as a small account, £120 in annual fee’s (excluding etf’s TER) would result in 5-10% annual cost, which doesn’t seem the right idea for an account of my size.

Offering Plus at an alternative % for accounts smaller than £5,000/10,000 - could increase overall plus members (eventually becoming pay monthly members) and attract new customers?

I know this doesn’t apply to the majority of Freetrade members, as a fixed monthly fee is better for large accounts - but it could encourage smaller investors to at-least pay something for Freetrade

#2

This was suggested before and honestly it sounds like a pretty good suggestions but I would imagine there are higher priority features on the roadmap.

You can often find decent substitutes for the ETFs you are interested in on the free universe though. Ask on the forum and I am sure there will be people who ll be willing to help dig it up.

#3

Ah, that does make sense.

I tried looking for similar threads before posting but couldn’t find any, I didn’t look hard enough of course.

1 Like
#4

Seems like a great idea to me, I doubt there are many plus users with small accounts right now for this exact reason. It would get them interested and used to plus, and also motivated to get up to the limit where it starts to get cheaper.

The one thing I wondered is if they wanted to keep the riskier, lower liquidity miners etc (not what you were asking about) out of the way of beginners.

2 Likes
#5

Good idea!

Only barrier I see is this complicating the fee structure which FT are trying to keep as simple as possible.

4 Likes