Freetrade is predicated on the idea of price innovation, so I think cheaper fees (if possible, none!) on currency conversion would be a great step.
Freetrade currently charge spot rate & 0.45% to convert currencies.
I understand this 0.45% charge is intended to cover the costs of outsourcing the remittance/currency conversion process, rather than generating profits, but it is a charge all the same. Whilst reasonable, I worry 45 basis points is just enough to deter users as cheaper alternatives exist
N.B. Ultimately, competitors use fee free FX as a loss leader to attract customers and then cross sell those customers awful, yet more profitable products. Fee free fx may well be axed when these competitors finally have to address any resultant freerider problem in pursuit of profitability. So whilst fee free fx might be unsustainable, maybe cheaper fees might be a compromise?
Please note foreign exchange at the interbank rate on demand is, in my view, a slicker, more user friendly proposition than multi currency accounts.
The latter involves converting funds, (potentially elsewhere/out-of-app) transferring said funds, holding them, etc and is not an on demand, instantaneous experience, in my humble opinion? Competitors (e.g. Robinhood, Revolut) offer the interbank rate and I’ve noticed this is a key point of difference that has appealed to some users here.
So cheaper FX fees may well be a reality soon anyway!..