I have been thinking in regard to the instant trade fee of £1. I know its not the world to pay £1 for that but how do you think about a monthly bundle that you could buy upfront.
Let’s say 5 instant trades that you can use within a month/year instead of £5 you get it for say £2 (this is just an example). We could do a similar example with 10 instant trades and so on …
I could see myself buying such a bundle upfront knowing I would save some £££ and Freetrade would be able to plan ahead in terms of ‘capacity’ ?
I know what you mean but for my investment style I try to stay away from monthly fees and instead have a ‘pay as you go’ approach for certain premium services. I hope this makes sense
I am not an economic psychologist but I am always the first one going for the ‘buy one get one free’ offer at supermarkets
I am also not specialist on such a pricing model. But if you are able to ‘sell’ more instant trades than before when applying some sort of discount (say even 10%) for those that are happy to buy in ‘bulk’.
Again this is just an idea and I just wanted to see what everyone thinks and I get your point @Rat_au_van ! Thanks for sharing that
No, I get where you’re coming from and can see the benefit in your idea
I imagine the hope is most people who want instant trades will sign up to alpha, which you’ve already said you’re not interested in.
Selling more instant trades depends how much they actually make on them, if it’s a very small margin then it’s pointless
I like the simplicity of Freetrade’s pricing and adding other options would reduce that.
I would like this a lot too. Being able to buy a bunch of trades up front that have a limited time on them e.g. a month or a quarter and then spending them.
This was kind of the interactive investor approach (but it wasn’t discounted.) I’d like to buy a bundle of trades which I have to use and pay an upfront discount in return for making sure I use them or lose them.
This promotes speculation over investment. Trading is NOT free, as much as brokers make you believe. You are always either paying trading fees, fx fees or some kind of tax like stamp duty or PTM levy.
The best thing to do is buy something you like at a price you like and hold for 20 years.
I see what you mean. But please don’t get me ‘wrong’ here. I am not saying to trade for free but to see this from the ‘big picture’.
Scenario 1: You offer instant trades for £1 each and lets say you get 10.000 investors that make use of this → £10K
Scenario 2: You offer instant trades for £1 each and in addition you offer some discounted bundles for like a 10% discount. Lets say due to this marketing strategy you attract more investors (e g 15.000) —
You see where I am coming from – its more about creating a ‘win-win’ situation for trader and platform at the end.
I also guess if you look at other trading platforms where they offer you £100 when you deposit X is nothing else at the end of the day.
From a ‘long term’ perspective it makes no difference if you pay £1 or not.
But @Freetrade_Team1 what about if you are a long term investor and at the same time someone you invests on a monthly basis… A bundle offer might be still attractive to some in that position?
I like the idea, but you don’t factor in the cost for Freetrade of these free fees. @Rat_au_van has tried to explain the downfall of such an avenue.
Say it costs Freetrade 80p of the £1 cost of instant trade, then they are only making 20p per trade.
Scenario 1: 20p x 10,000 people = £2000 profit.
Scenario 2: 20p x 15,000 people = £3000 profit.
Scenario 2 continues … because you havn’t factored in that if it is 2 for 1, it will also cost Freetrade the 80p for the free 15,000 on top of the 15,000 they made money on (total 30,000 trades). 80p x 15,000 is £12,000. That means Freetrade will make a £9,000 loss overall on the trades.
First of all thank you so much for this view and also for all the maths ! I really like the way you think here.
I do understand what you mean and especially if its down to ‘buy one get one free’ scenario.
I do however think (without having any degree in marketing or economic psychology) that some form of incentive could create in the long run a ‘win-win’ situation.
I am curious to see your math skills say you give one free trade for every 10 free trades.
This entire suggestion stems from my own experience of being more attracted to bundles and ‘offers’ that suggest a better deal for me. Even though I know deep inside “maybe that wasn’t so much of a good deal” I bet everyone had that experience at some point.
I am more than happy to learn from others and outline to me how ‘unrealistic’ my idea is as I am always keen to learn (even if that means to be wrong)
It would be interesting to get some insight from someone who has some sort of marketing experience and how these ‘bundle offers’ work.
