Note to crowdfunding investors and AMA

[aljt201 (Alex Taylor)]

Hi Adam, will it be possible to move shares I hold within Computershare onto Freetrade? I’m guessing the answer is no at the moment but is this being considered? It’s for a US stock that you do not have right now but you may in the near future. FYI this is a pain to manage and I’m currently receiving US dividend cheques which I obviously can’t cash! Cheers, Alex

[adam]

@Birgirm

Any different terms than the other investors in the round? Any preference shares or alike?

Look forward to seeing the rollout to more countries. Is user count increasing steadily?

There are standard investor protections included, and we have adopted new Articles that were approved by A shareholders. The new Articles will be publicly available at Companies House soon - previously we were still using the Model Crowdcube Articles.

On user count, there is actually a great thread on the forum with people sharing their new customer number: How many users now? - #238 by Viktor

[adam]

@Kk123

Hey Adam - in addition to looking fwd to fractional shares, one thing I’d like to see is a ‘Watchlist’ or ‘shortlist’ option to keep track of interesting stocks and get quick access to the profiles.

Any plan to work on something like this?

Yep! If you check out @anon810895’s link, it is on the Xmas list.

[Kk123 (Kunaal K)]

Thanks @anon810895 I must’ve missed this when I saw that update. Will make good use of this feature - should result in a lot more transactions

[Jim_mcgrain (Jim)]

What would you like to look like in 5 years time?

[anon1435622]

What do you see as Freetrade’s biggest challenge going forward?

[cwlfletcher (Charles fletcher)]

@adam
I completely agree with james here. Freetrade still has huge potential that hasnt been realised yet, although great progress has been made.

I am an early adopter and I haven’t transferred my portfolio due to:

1. ISAs being expensive. Most platforms do not charge for ISAs and so I think you should not if you want to realistically compete.
2. Lack of ETFs and stocks to choose from; I know this will come eventually as it takes time to add these and so obviously large competitors have the upper hand at the moment.

Furthermore many of my friends arent as patient as myself in the signup process and struggled with the following aspects:

1. Transferring funds to freetrade/topping up
2. Getting their account verified so they can withdraw funds - even I struggled with this.

Personally I think you should definitely tick off feature development before expanding to Europe. Key features in prioritised order in my opinion are:

1. Top up methods
2. Isa free
3. Watchlist
4. Benchmarking
5. Better graphs

I think once these are complete the platform would be “sticky” enough (in the economic sense) to keep customers.

Finally, great to hear about draper esprit! Congrats. What do you plan to do to counteract many platforms offering comission free trading such as etoro and bux?

Thanks!! Keep up the good work. I believe strongly but there is still a fair way to go!

[MartinBodocky]

Hi @adam, how many outstanding shares has Freetrade after the investment?

The company filling from august 2019 says there is 49 mil of them:
https://s3.eu-west-2.amazonaws.com/document-api-images-live.ch.gov.uk/docs/ocL5BlhL7wfOVjl80XNOQ8CitfKpnT_uWCYMmbkcyeQ/application-pdf?X-Amz-Algorithm=AWS4-HMAC-SHA256&X-Amz-Content-Sha256=UNSIGNED-PAYLOAD&X-Amz-Credential=ASIAWRGBDBV3ABNBPOPY%2F20191112%2Feu-west-2%2Fs3%2Faws4_request&X-Amz-Date=20191112T202307Z&X-Amz-Expires=60&X-Amz-Security-Token=IQoJb3JpZ2luX2VjEPT%2F%2F%2F%2F%2F%2F%2F%2F%2F%2FwEaCWV1LXdlc3QtMiJHMEUCIQCrua%2Bv6rKC6R%2FsbJJOfnFDvTuufOWT2epM%2F6MJLcyjewIgMbcI8PyAT0Z0TXfZdKULE2tYZgpDHrKbjKQHlb6sgwMq0AIIHRACGgw0NDkyMjkwMzI4MjIiDG7gtcUu7rlb3iOWxiqtAiGY33Xn7y3ueNy5itKknG0GSU4%2B1kdOXzyWcwwqiJByQZAiqJCLZ02Rv4xYHH3zWGHt9u4mxG1pkDH%2BzXv95khyHtqHAmeBisc4t1cIPs2krGUdLUCBFl05ENv2ej%2B3jCtY2UMPTgdYxyGA0Dxjx0hkmEc%2FpsAYiWFN2FQYacI9DS3kkPOL2xXF68L8kQrfoOKtd7dxxrRGtWq8ibThSuNk5%2Bi4ezjrwYUQMhXKq4%2Flbld8tjwT5ZA0eii9uoOBAIDt6ymc7LHK0zZxJ93CqEp0AHE6b%2B%2FwI0Blje5xlDwgwWeNXDqa3cdLkLzQt4jjKSMQNkF32lW2lhDQTeLdYCWTtgMwZCuZjJc5qbBWZzH6qEawV66TvNCTDKees0i7P%2FGFRt%2BIDdgjvxdun0EwrY6s7gU6zwLKw5x2bW%2FSCsssXsT3tb%2BYVXI1Zgodnavc4UlIsWqV%2Fb%2F6MOGU2KlSVXomdpDa%2FgEaITR7mQM6px5O%2FaSmtodQszOFBuM9b3MxCdb7gI8PRUj8Gw%2FQ2ph2gjKiYrWHca8des5%2B9fw30KCCvkPgIHJ0Y%2Btwf5H71UrBwi2uiRGeVqhgILu%2BGbZQEUBvE8Svy9xG6p2a3idvyWbrH24SxBSVVcezLJuPiPtzNPpb3l4LvgcTtFiksMwZtUzZhD%2BfOdDZQ63s7E690cYTjv3GovSmbhLo74OQ25gee7gSZGDIb%2Br60UbK1yBfgP2KVpW6tOjNW37Ugyx%2FC1TXADhTOIYEoeViVi3gOt%2BuFR4yeojDfCLs3HKPUTqAJx3uv6esGXIAtjdGj5zLYJqxdpvKeNAF9A4llM%2BdMNa7L12KPTiYCuQ8pD0Ec9rY4KllXtuhzg%3D%3D&X-Amz-SignedHeaders=host&X-Amz-Signature=7b8b756356c7c7fd962bfd2b09a88eeae19f8ce0c358cca379a730bfef03272c

Thank you,

Martin

[anon810895]

@CashCow

Fairtrade

@CashCow

Fairtrade

@CashCow

Fairtrade is a bright fun app

So good you forgot it was called Freetrade

[adam]

@MartinBodocky

how many outstanding shares has Freetrade after the investment?

c. 55 million once fully completed.

[adam]

@userfy_123

Hypothetical question but if you were to raise again tomorrow what share price would you hope to achieve given progress over the last 3+ months?

We’re focused on growing the business and developing our tech - the valuation will follow if we execute well.

[adam]

@Biyka

Am assuming that Draper have negotiated some special class of shares from the way you seem to be avoiding answering this question however would be great to understand what additional rights they have? I’d assume that this will come out via companies house anyway in due course?

Yes, the full Articles will come out in due course on companies house. Not everything will be made public though. Draper has certain ‘consent matters’ which I would call investor protections. Eg we can’t sell the company without their consent. As a crowdfunding investor, I’d be happy to see the additional structure around corporate governance, but I hope you understand why putting everything out to the public sphere wouldn’t be appropriate.

[adam]

@caribo

I’ve made a couple of referrals but neither have been taken up. In both cases the people concerned have felt trepidation about investing in the stock market and the possibility of losing money (maybe it’s because they are Yorkshiremen!).

I see this a lot and it’s a difficult sell… many people that I encounter have an inherent fear of the stock market and a reticence to invest.

How do you plan to overcome this and “Make Freetrade Sexy” ?

Paul, that’s a big question!

Right now, our product is not designed for someone like your friend. It’s a utility for someone that knows what they want to invest in. That will change over time, as we build out new features to help new investors.

The association of investing with gambling is a tougher one. Especially when you have shady CFDs brokers mixing the two wilfully, or ‘investing’ apps stateside that are really just trying to get you into leverage.

We’re in it for the long fight though. This round will help us take the first steps towards education and getting Freetrade’s voice out there.

[adam]

@aljt201

will it be possible to move shares I hold within Computershare onto Freetrade? I’m guessing the answer is no at the moment but is this being considered? It’s for a US stock that you do not have right now but you may in the near future.

This is a question best asked through the app to our wonderful customer support team.

But no, we can’t transfer shares to your Freetrade account if we don’t support those securities in our universe.

[adam]

@Jim_mcgrain

What would you like to look like in 5 years time?

The dominant investment platform in Europe.

[adam]

@anon1435622

What do you see as Freetrade’s biggest challenge going forward?

Keeping focused and executing on our vision. Biggest challenge right now is making everyone that invests already aware that Freetrade is the best option out there. After that it’s convincing everyone else that investing is something they should do too.

[anon810895]

@adam

What tidbits can you share about the upcoming Alpha accounts? Any features you can tell us about now?

[adam]

@cwlfletcher

I am an early adopter and I haven’t transferred my portfolio due to:

1. ISAs being expensive. Most platforms do not charge for ISAs and so I think you should not if you want to realistically compete.

Sorry but that’s absolute nonsense. £3/mo for an ISA with no trading commissions or custody charge is not expensive.

@cwlfletcher

Personally I think you should definitely tick off feature development before expanding to Europe. Key features in prioritised order in my opinion are:

1. Top up methods
2. Isa free
3. Watchlist
4. Benchmarking
5. Better graphs

You’ll be really pleased with the Xmas list of features (except the free ISA )

@cwlfletcher

hat do you plan to do to counteract many platforms offering comission free trading such as etoro and bux?

Build a better product and overall experience for our customers. We don’t have a monopoly on not charging commissions and yes we are seeing some clones. We’ll just keep running fast on product and build the world-leading tech behind what makes Freetrade special.

[Biyka (Ben)]

Thanks - I have no issues with additional corporate governance controls. Much more concerned about clauses like the 18% compound guarantee that BrewDog offered to TSG. Am assuming from what you have said that there isn’t anything similar to this?

[adam]

@anon810895

What tidbits can you share about the upcoming Alpha accounts? Any features you can tell us about now?