And at that amount of volume of trade/assets an ISA makes sense. Even at £5/m tbh
As an investor and Freetrade customer I am very happy with the move.
Basically they are adopting the apple strategy - making the most premium product very good value for money to encourage adoption. As Sam mentioned for Freetrade this is a no brainer
Excellent revenue growth management from the team.
Nice to see the plan restrictions in place, before the September date… Im rather surprised to see the buy options blanked out on shares I own.
6 posts were merged into an existing topic: Freetrade Competitors
I think it’s all been relatively well thought through and commercially makes perfect sense to me. I can understand certain peoples’ frustrations (e.g those with ISAs only etc). My only beef is my top 2 stocks (ADC and STOR) are moving to the mid tier. But as a (current) basic plan user I hardly think I’m in a position to moan!
Freetrade remains a great product in my opinion.
If that were the case then FT should just be upfront and charge everyone something.
Of course the reality is much more nuanced than you make it…
Now the option of £4.99 a month… the only obvious thing is the stop loss/limit order function from a free account to paying, oh and a bit of interest on any surplus in the account.
With regards to the ISA, i have that elsewhere for long term so only General account for me.
That’s not how the freemium model works though?
You provide a great value (free) service for those dipping their toe into the markets.
If they become more serious about their investing and build their portfolio they’ll eventually need additional features such as ISAs, SIPPs, lesser known markets and stocks and limit orders etc.
Charging people from the outset of their journey will discourage a lot of potential investors which goes against Freetrade’s aim.
2 posts were merged into an existing topic: [Feature Request ] Annual Tax Certificate
If I do a plus plan and leave £4000 in there at 3% if my sums are correct that would pay the £10 a month?
That’s my understanding too.
Yes that is correct.
Also, if the cash is held in an ISA, Freetrade will pay the interest into your ISA account - so the interest will be tax exempt in the future.
Don’t forget you need to deduct tax and you can get over 2% in a building society 1yr bond. So you do gain a bit but not totally extra towards the fee.
And just to add to @TradeRunner comment, if you’ve maxed out your ISA on shares, but you then get divis which you keep as cash, these will earn tax free interest too at 3% (up to the £4000 limit across all your accounts of course).
Yes, although don’t let the interest offsetting fees be your only reason for choosing Plus over Standard. From a purely interest and fees perspective, if you put that cash into the best easy access account (currently 1.71%) and use Standard you would be £8 better off.
(£4000 x 1.71%) - (£5 x 12) = £8.40
but a 3% return on £4k, wouldnt that money be better of invested for a greater return
Best answer here I guess is, it depends.
For example, you might not want to invest all your cash in stocks and shares. It might be your rainy day money, for use in an emergency. Getting 3% on it is a pretty good return at the moment.
It depends (i love that phrase)
there’s been some push to market the 3% on 4 k (only in plus, its 1% on 2k in standard) as covering the fees of the account. mostly by the community i think.
But freetrades own wording i think is a better idea of what its for
Make your money work harder in between investments with 3% interest on cash up to a maximum deposit of £4,000
Personally, i wouldn’t hold £4k for the specific sake of the 3% interest. As you say, you can potentially get better returns by investing your money. There’s plenty of dividend paying companies out there with stable or slow growing stocks paying out over 3%.
the interest imo is mainly for making your money work between investments, and often its not a bad idea to have a reasonable cash reserve in your investment account anyway.
It depends on what that cash is for. Mine’s for emergencies, so if there was a cash ISA out there paying 3%, that’s where I would park my £4k but the best place right now is in my Freetrade ISA.
The challenge however is to not touch/invest that money except for emergencies!