MEGATHREAD: Freetrade Plus :plus_:

Pretty much nailed it for me

My 2p = I prefer whole numbers for the pricing, I think £10 feels a lot cleaner than £9.99 and fits better with the existing £3 ISA charge

10 Likes

Long term your recap indeed is a great value proposition, count me in! The question is given the time/budget constraints what is the minimum amount of features that are still seducing for a significant % of customers?

From the latest pitch deck the plus adoption is projected at less than 10% of the customer base by the end of the year…

Short term, in my opinion these features would be sufficient:

  • reduced FX
  • limit orders
  • SIPPs/ISAs
  • Enchanched portfolio insights
  • premium customer support

For the stocks behind the paywall would prefer to wait for the explanation from FT. I am not fully convinced by it but I see the logical explanation (correct me if am wrong) Lower market cap stocks will cause many unfilled orders and putting them together with limit orders does make sense.

Everything else could be built on top and ideally move towards your value proposition.

If it takes years to build all the features you mention would prefer FT to start with smth intermediate and start making money. It doesn’t have to be perfect from day one.

4 Likes

Please @Viktor make sure you guys don‘t focus too much on SIPPs/ISAs and other country-specific tax-efficient accounts. This will make scaling the product offering to other countries very difficult.

Some PLUS features in which I would see scalable and direct value:

  • reduced FX fees (using your customer data, specify a cut-off average monthly trade value at which the plus subscription fee would be amortized. Even if the FX fee is just reduced a little bit, this could make a big difference in attracting high-value portfolios and large-ticket trades and doesn‘t cannibalize your FX revenue source if executed right)
  • multi-currency accounts (even if just EUR/USD are introduced for now, this offers access to a large market)
  • auto-investing / re-adjustments (could be implemented to execute at bulk → low direct costs for you but big plus for customers).

Of course, tax-efficient accounts certainly add value and could still be implemented at a later stage once Freetrade has been made available to more countries.

6 Likes

Depending on the % reduction of FX fees it feels like it might be enough in it’s own right.

For anyone investing 1k a month and not touching it forever thats 5gbp of value per month right there. Assuming a few trades or a larger sum, that is easily 10gbp and a total no-brainer.

6 Likes

I support this view and would also ask that Freetrade don’t make the product purely designed for traders. Many (most?) investors prefer to buy and hold while trading infrequently.

2 Likes

To balance this view.

Have been waiting for the app to launch in France for a long time (very long time) and considering the current market landscape in France the app will still be in demand as it is (the app is already better than any single bank offering brokerage services in terms of pricing and the app simplicity).

There are already apps trying to make a universal app for all the markets at the same time (best example is Revolut)

At this point in time it seems that a better value proposition is to tailor the app for the largest markets in the EU with the respective tax-wrapped accounts for each of the markets (PEA in France e.g.).

The point raised is valid and indeed the product offering should still be enticing to people without access to tax wrapped accounts in the EU but would reiterate that tax wrapped accounts should not be de-prioritized.

11 Likes

Plus on android :grin:

1 Like

Yup, I like this and I’d happily pay for this

I got access to Plus on Android yesterday and I’ve been playing around with it since.

Nothing but positives to report so far, great job Freetrade team!

Would be good to know what the exclusive stocks are and a more detailed update on when Plus will launch ASAP :slight_smile:

4 Likes

Another Plus feature suggestion while I’m here - the ability to buy/sell over £10,000 limit.

12 Likes

You’ll find out more on this in the very near future :wink:

8 Likes

The building freetrade page has gotten updated for anyone who missed this.

Some additional info there. We might see EU stocks before SIPPs, for example.

BTW: The new website animations are a nice addition. The website feels more like an app now when viewed from the phone.

1 Like

Did I imagine it or were SIPPs discussed on an AMA call as being targeted for sept/Oct release?

Edit: Nevermind, I’ve just seen you’ve said the exact same thing on the actual Sipps discussion :wink:

1 Like

:eyes: Whole shares via Limit Orders

27 Likes

Saw it too - whole shares!

Have to say, now I am used to just invest by amount and don’t care at all about whole shares (Adam was right on his AMA!) But a guess a few people have OCD so it matters

Good job Freetrade team for listening and acting on the feedback from the community!

7 Likes

It isn’t just about OCD though. Fractional shares create extra work for someone either FT or the share owner in certain circumstances eg stock splits/mergers etc.

Fractions are great for ease of investment and portfolio balancing but there are issues when it comes to some corporate activities. Or at least that has been my experience with fractions on another platform.

4 Likes

I’m sure I’ve missed a post somewhere, but what is the difference between a limit order and a triggered order? I can’t seem to make sense of it based on the post above

1 Like

Limit order is guaranteed price or better, but does not support fractionals.

Triggered order is a market order that is executed when the target price is hit, but does not guarantee against price fluctuations. These do support fractions.

Fractional shares create extra work for someone either FT or the share owner in certain circumstances eg stock splits/mergers etc.

It’s a simple toggle box on the form for splits. Not too sure about mergers.

2 Likes

Is this because limit orders go into an order book that doesn’t support fractionals?

Doesn’t FT have the ability to not trade if the price is too low? Couldn’t that be used to do limit orders with fractionals? I’m just remembering something about FT monitoring exchange prices to ensure users aren’t getting screwed over by market makers? Or is that a reactive check after the fact only?

This is just how it’s handled by our US orders partner.

I believe limit orders (whole shares) go into the order book directly, but for fractionals they have to do an extra step which can’t be a guaranteed price.

Speculating, I suspect it’s because you’re buying / selling X shares at the guaranteed price and then a fractional part of a share which may come from a share traded in the past / future at a potentially different price. I’d have to ask around to be sure, and remember I’m a software not brokerage guy so don’t quote me on it.

Regarding monitoring exchanges, prices have to be within the NBBO (US) or LSE bid-ask spread else they’re rejected.

3 Likes