MEGATHREAD: New subscription plans 🔁

I’m not happy. You’re basically going to lock me out of half of the US stocks that I currently trade unless I pay you monthly. Classic bait and switch. Thanks guys :frowning:

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I guess it’s a case of you pay and the company can hopefully not fold or you get everything for free for maybe a year or two and the company proceeds into administration at which stage you will be forced anyway onto a new broker with higher costs than you might of had to pay using standard.

Its all peaches and plums, needles and pins

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Except on US stocks the poster isn’t getting “everything for free” - they are paying fx fees.

Regardless of whether FT needs to make money (which as a shareholder it obviously does!), the point still stands that it is not the first time that FT has done a bait and switch style tactic by removing access to shares (rather than actually making the paid plans more attractive eg uk fractionals/auto reinvest etc etc). It was a poor decision when they first did it and the same now.

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Dummy error, a few stocks are showing this when in actual fact you can’t trade them.

Made a comment a couple of years ago which was quite popular.

Still believe that opening the universe to everyone and adding a 1£ fee on paywalled stocks will be a net benefit to FT

Hopefully with new features they will eventually get rid of paywalling stocks as people will see enough value in subscriptions even without the paywalls

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Yes looks like Freetrade are applying a default message for stocks that are not tradeable.

Not sure why an Admin moved my post to the Evraz thread, as that was just an example stock. The issue for me, is whether that erroneous error message would lead to a customer to upgrade their plan and they still cannot buy the stock.

Maybe we need a Freetrade App Bug thread for reporting non security related bugs.

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So how close is Freetrade from bankruptcy or liquidation?
I’m interested because if this is the case I would prefer to move my investments to a more secure platform.
Furthermore, I’m not sure the changes to the basic GIA would be enough to stave a bankruptcy. Indeed the reduction of revenue from Fx fees is counter productive. So even more concerning when placed in the context of quotes like this.

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I wouldnt worry about your investments they will be segregated. If freetrade has issues im sure another provider will just buy them out cheap for all of their clients (us)

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A fair point, but it reduces our freedom of choice. I prefer to be the captain of my own destiny rather than leave it up to chance.

It is I think not that simple.

While freetrade currently operates at a loss in terms of profit on their statements. Whether they go bankrupt or not is a bit different for startups. They’re (as I understand these kind of startups) supported by investment from a number of institutional investors (and individual investors). This allows them to operate while losing money.

The goal obviously is not to lose money.

I think freetrades overall long term success will depend on how well they’re managed and how well the build their product to generate cash. And the introduction of the change in tiers i imaging was backed up by numbers and calculations. It might seem they’d make more on Fx but I can only assume they’ve done the numbers and in the long run this method works out better.

Starling and Monzo might be a good example of profitable vs unprofitable startups. Monzo are still unprofitable, Starling are now profitable (though only by a small amount). But the difference seems to be direction of the business and where the focus was and their goals to profitability.

I think for a broker becoming profitable quicker is a better idea (imo). But technically so long as the cash flows in from investors they have a lot of time to get there.

FYI, they have increased revenue this last year, along with number of accounts and trading volume.

But they’ve also made a bigger loss this year. That’s not necessarily unexpected when your wanting to expand at a certain pace to push out new features and support more counties etc

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I’d also like to see the paywall go. I worry that FT is becoming like the Ryanair of the brokerage business – charging to access certain stocks, customer support, order types and a website when they’re bog standard elsewhere. To my mind, that’s a backward step – not disruptive innovation.

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This is probably a good assumption. It would explain why a cohort of clients on the basic GIA who have an ISA and SIPP taken care of elsewhere are treated as collateral damage.
Personally I have no reason to upgrade to standard or plus as my ISA allocation is planned out for the next 12 years. I have a final salary pension scheme which is about to mature this year so again no reason to upgrade.
It really leaves me and others like me with a stark choice.

  1. Take the changes on the chin and stick with a reduced product offering.
  2. Move to a platform best suited to those needs.

I’m still undecided as to which option I’ll take. Maybe a hybrid of both but Either way I don’t think Freetrade have considered this cohort favourable.

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I’m also not happy about the price increase of the ISA. I’ve been on a waiting list to open a Trading 212 account now for over 18 months. I have now just managed to open both the GIA and ISA accounts.

So the Trading 212 ISA has no monthly fee. It gives you full access to all of their stocks, limit , stop & stop limit orders, and the FX fee is only 0.15% Also a web page free for everyone to use. It Iooks like I may have to transfer everything over to Trading 212.

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I would like this option!
I am planning to downgrade from ISA to basic because the extra £2 a month doesn’t seem worth it to me. Just need to check all my existing stocks work :thinking:
In choosing Freetrade the £3isa was a big win.

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7 posts were merged into an existing topic: Freetrade investor relations/updates

Clearly no or little fees are best but in comparison to others out there the Freetrade fees are not too bad.

If you have used your full £20K ISA allowance the £4.99 fixed fee is only 0.3%pa and hopefully your investments are growing which sees the %fee dropping.

For really low fees I also have an account with Vanguard for their funds as they have a low low fee of only 0.15%pa

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I’m happy that Freetrade has put a simple and transparent fee structure in place. As I have the bulk of my ISA here I want them to do well. I’m also planning to transfer a small SIPP over now that the Plus includes this.

As someone who has previous experience of H-L they are prohibitively expensive if you want to do any sort of stock picking / trading outside of the funds they push.

Freetrade is free to trade. Yes there is a tiered platform fee but what do people expect - a completely free service forever?? Good luck moving to some other start-ups that may currently be a tad cheaper. They will have to make money off you at some point in the future to stay in business.

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