Increase £25K Order Cap

Hi Team,

Is it possible to increase this limit substantially please and also allow us to place more than 2 limit orders at a time?

If there are costs involved isn’t this something that can be passed down to the customer for them to agree to and pay at the point of order?

Thanks.

Bump

This is quickly becoming an issue as there are some of us that cannot place enough of a/enough orders to fully exit a position in one go.

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+1
This 25K cap is too restrictive as I have to setup 2 triggered orders and even then I can’t fully exit a position.
The limit order only allows 200% of current price as well so I can’t really take advantage of those 2 allowances I have either.

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Would be great if we can get an official response to this.

If we cannot exit out positions due to app limitations can we ask Freetrade to place orders for us? Degiro offers this as option, I can email support and they will place an orders for me.

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As a lot of you already know, Freetrade has a limit per transaction of £25k.

This isn’t currently an issue for the shares that Freetrade offer, as currently the most expensive share on the app is Amazon (around 3k/share). However there are shares on the market already worth more than 25k (Berkshire Hathaway anyone?)

With the volatility of the market increasing more week after week, we could see some stocks in the Freetrade app on the receiving end of a short squeeze. If this were to happen Freetrade users would be better off using a limit sell to guarantee their price point, rather than risking being on the bad end of a large bid/ask spread.

How high can a short squeeze push up the price of a stock? It’s theoretically limitless. A 25k limit may look woefully small when stocks could be trading at much higher prices.

Freetrade is currently reviewing this transaction limit, which is fantastic! However the new limit might not be enough either. As I mentioned a short squeeze can push prices up to limitless amounts. So any limit would be restrictive of Freetrade users to access the ‘free market’.

HERE’S MY SOLUTION:

We need to change the format of limit selling. With this change of format we don’t even need to increase the transaction limit.

Current Limit sell format:

  1. Set price per share (current max 25k. This is where we become greatly restricted, as the limit should only apply to a transaction, not a share price!)
  2. How much of a share, or how many shares would you like to sell? (this is all restricted to the limit of 25k/share.)

EXAMPLE: I have 1 share, It’s worth £1 million for whatever reason. I go to my limit sell, the best I can get is £25k! Or sell 0.1 of my share for £2.5k. Pretty disappointing if you ask me.

My proposed new format:

  1. Set price of this transaction (limit of 25k, or new limit when it is introduced)
  2. how much of a share, or how many shares would you like to sell for this price?

EXAMPLE: I have 1 share, It’s worth £1 million for whatever reason. I go to my limit sell and set the price of this transaction to it’s maximum (currently 25k). I then decide to sell .025 of my share for this price. This way my share retains its full value and I’m guaranteed I get the right price for it. Without having to increase the limit per transaction.!

And that’s it! A simple fix would allow us to set the transaction limit and then decide how much of a share to sell for that price. We can work within the current limit per transaction and still trade at the share’s full worth. Sounds like a win win to me!

Any feedback or comments are welcomed, I’m here to learn too!

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The problem with fractional shares is that only whole shares sell on the actual market.

If a broker supports fractional shares, they’re taking a gamble on the rest of the share and hoping they can pair it up with other fractional buys and sells without losing out.

It’s actually safer for the broker to insist on selling whole shares and removing the limit. The problem is still going to be volatility and finding someone who’s prepared to buy it.

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Thanks for clarifying on the fractional shares. I was worried that might be an issue!

So it’s certainly in Freetrade’s best interest to remove the limit, or change it to percentage only like other app based brokers. I’m not sure what the liquidity requirements are for that though, and I imagine that’s why they’re still trying to figure out how to deal with this.

Also I think anyone with shares in an ISA account should have this limit removed, as we already pay a subscription for the ISA and likley for Freetrade plus too. Why are we paying these fees when Freetrade can’t offer the same service as other fee based brokers?

image

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I hope you get that strength! And by strength I mean dealing with this limit/transaction issue before it becomes a big problem. We’ve seen what happens when users are let down by their brokers cough Robinhood cough.

I’m sorry I don’t understand your meaning by this reply?

Did you mean:
A. It’s not an issue as freetrade are already looking into it (as confirmed by the in app support)
B. Passive aggressive/hurtful and un-educational response.

If you could clarify I’d appreciate that.

What would change your mind about your assumption that GME is going to hit 25k per share? If nothing would, perhaps you should reconsider the basis of your belief in this stock. If something would make you reconsider, what would that be?

That sort of rise would be unprecedented for this size of stock, which has already gone up 3300% in the last year to a 10B market cap - it would have to go up an incredible 600,000% to get near that, what possible reason could there be for that sort of increase?

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Un-educated?

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They did address this in the AMA last night and said there were significant compliance issues to overcome and it wasn’t a simple solution. I think that’s all you’ll get for now but they’re obviously aware.

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Shares being created that are multiples of the extremely tight float then supply and demand dictates buy at any price to balance the books due to institutions going belly up through margin calls?

All depends on how many shares have been created out of thin air, like magic!

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Personally I am very excited for the shareholder meeting. I think the vote count is going to be wild!

I missed this, I would love to know what compliance issues they are facing!

Haha that’s why I was getting a red squggly line underneath it! Is non-eductational more appropriate?

Hey Kenny,

Is there a character limit on these forum posts? I might have to put a pdf together for you to fully explain why, and provide all of the sources. Especially some recent interviews with industry professionals such as Dr. Susanne Trimbath and Carl Hagberg.

Firstly let me address the fact that I did not mention GME in my above post. The fact that you assumed I’m talking about GME is telling that it’s got a lot of eyes on it currently.

Also I did not anchor the price of GME to 25k. Where did you get that assumption from? I do not do price anchoring. I am saying I believe there’s a high chance of it going far above 25k. what price? Who knows, because if the event of a short squeeze occurs (which I will explain the likelihood of in the pdf I’ll put together for you).The upper limit of the price is literally limitless. Here’s a short quote from investopedia:

“The risk of loss on a short sale is theoretically unlimited since the price of any asset can climb to infinity

So perhaps you need to consider what would stop it from passing this 25k limit?

Also I mention in my above post, Berkshire Hathaway is trading at a much higher price point. in part thanks to Buffet refusing to do a stock split, ceating a limited supply. It’s currently trading over $420,000. So stocks very much exist above this 25k limit.

I’m not arguing that the rise would be unprecedented, I agree that it would be! But saying it won’t go up further because it already has gone up a lot sounds a lot like whataboutism.

You know what else is unprecedented in this situation? (And makes me very bullish for GME?) The amount of short interest that was on GME in January, the current percentage of daily volume on GME being short positions (70% of all trading volume yesterday 12/05/21 was short selling). And the price did not drop. Not to mention the large reduction in overall volume, and no change to OBV (On Balance Volume) because almost no one is selling.

I have to get back to work now, but I’ll send a pdf over later hope that’s ok!

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Except they have BRK.B shares.