If you can't beat em, join em

General Chat 💬
1

So.

If you ask me the fact AJ Bell is creating Dodo, a new low fee investment platform that still has AJ Bell as its parent org reminds me of the early days of low fares airlines and more importantly the way the legacies tried to replicate them.

When the likes of Ryan Air, easyJet, and Southwest came to town the legacies tried to start their own low cost airlines, with varied success of course.

Is this the 1st sign that some of the legacies are at least starting to feel the effects of not just Freetrade alone, but all the low/no cost brokerages much like what happened some 12-15 years ago with the airline biz.

‘If you can’t beat em, join em’ as the saying goes.

2

I don’t even understand how people make cash on some of these expensive brokers unless you’re firing tons of cash at it for a £20 per trade fee

3

I used to be with EQi. It was my first foray into investing and I used that broker as I’ve been an on and off contractor for Equiniti*

All opinions provided are my own and not that of the company *

My gains were more or less strangled by fees.

I still hold the £EQN stock but don’t use EQi or any other legacy as unless your minted it’s just no use.

1 Like
4

Ideally you want to make the commission fee 1% of the trade value or as close as possible.

You’d have to close a trade of circa 2 thousand a time to make it economically viable at £20 per trade

1 Like
5

Before all these fee-free platforms, all investors had were the expensive brokers as there was no alternative.

The first time I sold shares, I had to post off a physcial paper copy of the share certificate and then wait impatiently for my cheque for the proceeds, minus the broker’s fat fee.

You were still able to make a profit with investments back then, just that the brokers always got their cut no matter what.

3 Likes
6

I used to use IG.com who charge £12 per trade and then if you didn’t make enough trades in a month you paid an account fee of £25 I think. Madness!

3 Likes
7

Much like the low cost airlines which I compared this phenomenon to, the investing world need a huge shake-up and I’m confident it’s getting it.

Sure they have to make money, and no one works for free. But there’s making money, and there’s daylight robbery.