Hi thanks for readings. So I’ve just kind of started getting into stocks and shares and I’ve got an idea of where I want to go with it. Now I think I understand dividends and such, but when i go to buy a share on Freetrade, and scroll to the bottom there is a ? Costs and Charges.
Now I click that and it tells me various things, then it proceeds to give me an example using $5000 over 5 years. And this is where I am curious about:
All of these are 0 with ongoing charges (£3/month ISA) and transaction costs (£1.trade (instant trade)
So it goes on saying Investment product charges:
One-off charges = £0
Ongoing charges = £675.10
Transaction costs = £23.41
Incidental costs = £0
Total investment product charges over 5 years = £698.51
And then it goes on to tell me the value over 5 years with and without the charges:
Now my question is this: I thought freetrade was free? But on the example above im actually losing more than i’m gaining with a 5k investment? Am I confused?