How do you justify Freetrade Plus?

Hey everyone, I just got Freetrade Plus for a month.

To be really honest as much as I love Freetrade I feel the £9.99 p/Month / £120 a year really really hard to understand and justify, I just can’t quite figure out who could actually justify £120 a year unless you are a pretty big retail investor investing a lot of money with great returns.

Freetrade is all about long-term investing so other than Stop losses why are limit and Trigger orders really necessary as they feel like Day trading techniques and are absolutely not worth paying for as basic retail investor.

Not bashing just trying to understand how you can get your £120 worth unless you are a somewhat big investor?

EDIT: Just an Edit, btw I’m not bashing Freetrade although locked stocks behind Plus is a shame, I do understand that Freetrade Plus is probably only made for bigger investors.

Thanks
-Samuel

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Limit orders, stop losses etc with 3% interest to cover the cost for me. Getting the additional benefits whilst holding the 4K for an opportunity that sits right and it makes it cost free technically.

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You’re right if you’re a long term investor with a small portfolio then you don’t need Plus.

I have Plus as

  • I need access to small caps

  • I rebalance my holdings often (short to medium term) so features such as Limit and Stop orders are a must have

  • I keep some cash on the side for dips which gives interest which pays for Plus (may not be permanent)

  • FT will add more features in the future

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Forgot about the interest thats really good point I can see how that makes it super appealing.

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I don’t really need the order types either, but given the really poor interest rates in savings accounts atm i think its worth putting in 4k to get the account and an isa essentially for free

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Because it’s cheaper than paying the £3 a month for the ISA, which I think is already good value.

I guess you think that sounds odd, but for me it’s just simple maths.

I’ve got spare cash sitting in a savings account that earns a pitiful half a percent or something. If I move £4000 of that into my Freetrade account and just leave it there doing nothing, it cancels out the cost of plus, and I save £36 a year on the ISA fee, so effectively that £4000 is earning 0.9% interest. Which obviously beats my savings account. And it gives me extra features I don’t really use (although I have used limit orders occasionally).

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Same I don’t use the features of Plus, but it saves £3 for ISA and £3 for SIPP so it really costs £4 which is covered by the £10 interest.

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being honest, I probably don’t get the benefits of plus. I don’t have a single “plus only” stock and I have probably only used 2 limit orders so far. However, my ISA spans 3 tax years and is currently acting as my savings account (yup, maniac, I know) which has enough in there that it can move by the value a years subscription in a matter of hours, as others suggested, the cost is relative to your portfolio size and general strategy.
I pretty much have it for the option to use limit orders if/when I need them.

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I spend well over £120 in dealing fees over a year with my other ISA provider AJ bell.

£10 to buy. £10 to sell. £20 per position.

Sometimes I time my buys badly and I feel like the £10 hit to sell/exit a trade stops me from getting out.

Whereas the £4k earning interest meant I can get out of positions at no cost if I time it badly.

Better for the emotions and keeping costs on frequent trades low.

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Well I look simply as it costing either a couple pints a month or a single share in GME over the year and it is paid :joy: To me, and I don’t have tonnes of money to burn, it is best to just write off the charge and forget it and if it is too tight to consider that then maybe GIA/ISA is best.

My only annoyance is you can’t pay up front all fees as I hate transactions in my bank monthly at random times but that’s just my OCD of wanting the statement nice and tidy :joy:

Of course all the reasons mentioned by others are actually VERY good sensible reasons though!

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Freetrade Plus is literally one of the cheapest stock brokers available. They are transparent on fees so whilst it may seem a lot you will almost certainly be paying more elsewhere.

Nothing is free. Companies have to make money…

If you are just starting out then stick with the free option and as you build your savings move to plus.

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Actually, just to add to that. If you think that the cost of plus is excessive and you’re worried about wasting £120 over the year (which to be clear, I don’t think it is), it’s possibly an indicator that you should think carefully if investing in stocks is the right thing for you at this point in time. If the value of your investments was halved tomorrow, could you afford it? If the answer is no, don’t start investing.

On the flip side, if you can afford to lose say a couple of hundred pounds, then obviously you should start investing that, and for small investments it doesn’t make sense to pay extra for plus. If you have a small portfolio, you should start with the bigger companies and ETFs that you can buy without plus, as these are much less likely to lose as much money anyway. And if it’s only a small portfolio, having a GIA rather than an ISA is no big deal as you’ll likely be unlikely to be anywhere near the CGT allowance limit.

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Like you Samuel, I don’t personally see the value of it for me as I don’t buy any Plus-walled stocks, don’t hold cash and haven’t used many limit orders (yet). But I have accepted that Plus is a product that is perhaps just not targeted at me and is more geared towards larger/more serious investors, and I think that’s totally fine.

Actually despite all of this I did recently subscribe to Plus, because I have seen how quickly they added to it (the 4k cash interest was a surprising and swift addition), I may go into SIPPs soon, I already have an ISA so it effectively only makes it £7 more, may start to store some cash and as a FT Investor I don’t mind them having some of my money.

But yeah, you are right, I think for investors at our size/level it is not easy to justify it. But actually that’s ok :grin:

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I dont have enough invested atm to justify it but when I have enough invested to make it worthwhile moving my isa and opening a sipp I will be taking out plus. Right now I would prefer to be investing that 120 a yr.

If you have £4k, the 3% interest alone pays for the £120 / year and you get the rest for free

I think having the walled off stocks within plus is a bad call - the freemium account should provide full market access and the plus account should remain having the other account enhancements.

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Without meaning to sound rude as it isn’t meant to but that is not the most sensible path for a business as that would cut revenue significantly and probably make FT unviable :+1: It is actually sensible for the user to get a taster with shares etc and if they want more then they pay.

It isn’t cheap to run the operation and most would not bother paying for Plus then and it isn’t a registered charity :joy:

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The problem with Plus is that it seems expensive unless you have a big portfolio or constantly change investments. I’m subscribed but I question whether it is worth £120 per year. Maybe there needs to be a cheaper option that gives more market access but not the other features.

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£120 a year with an ISA included is not expensive in any way shape or form :+1: I really don’t get the people trying to make the company become a unviable business :joy:

No-one is forced to expand to the Plus world and they have many many stocks for free but if FT take away all the incentive to actually pay for the service then we will all be looking for a new service as FT won’t be around long.

I would say it is also still cheaper for people with small portfolios who want Plus stocks if they purchase small amounts than paying the £5-10 transaction fees others charge.

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In this community there are some big differences in what people think is expensive or not. That’s a good thing, fintech opens up access to investing for people who would have been completely excluded only a few years ago. But it must be hard to cater to a diversity of customers, especially when people have been trained to expect everything online to be instant and free, and don’t know what they don’t know about investing.

There are some people here whose entire portfolio is less than £120; for them, a Plus subscription would seem quite expensive. On the other hand, @Brap_the_younger recently cashed in a portfolio worth more than £50,000, and @sophie considers paying £240/year for Level 2 data to be inexpensive.

What counts as a ‘big portfolio’ is very different from one person to another!

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