Recurring trades using set interval


(Kam) #1

It would be awesome to see a feature whereby you could schedule a recurring trade e.g. Buy £100 of S&P 500 a month using a Basic order.

It would be good to have the following intervals:

  • Daily
  • Weekly
  • Monthly

This would let someone like myself who wants to trade using the ‘dollar-cost averaging’ technique to hedge any volatility in the market.

What does everyone think? :smiley:


Fractional shares (UK)
#2

Yes! You have my :ballot_box: I’m all for the “set and forget” approach…


(Rob N) #3

Great idea! It would be good to set it up and then have a notification of when you’ve bought each week/month and the share price paid etc - so you don’t completely forget about it…


(Luke Bebbington) #4

Brilliant. Would be v useful


(Josh Bruce) #5

Totally agree with this :heart_eyes_cat:


#6

This is a feature that most other platforms seem to have, at least for their S&S ISA. Now that Freetrade have an ISA account, it would be great to be able to set up a regular investment.


(Ryan) #7

I completely agree with this! Would be very handy.


(Tim Drew) #8

I love this idea, this kind of feature would have to be one of the top ones I would cast my personal vote for.

To flesh this concept out a bit more, what kind of safety guards (if any) do you think you would need to have on a recurring trade? Is it ok to put responsibility on the user and say “it is up to you to keep an eye on price changes and cancel the recurring trade if it no longer represents good value for you”, or would you need a recurring trade to auto-stop if particular price levels are reached?

Also, do people have a use case for recurring sells or is this just for buys?


(Kam) #9

I personally can’t see a reason for recurring sells :thinking:. For me it would be a seldom (if at all) used feature. I am aiming to go long with most of my investments, hence like the idea of buy at regular intervals to hedge against volatility. IMO It’s a far better approach compared to buying one-off large blocks of shares.

Since I can setup scheduled payments inside of Monzo, having a ‘Scheduled Buys’ feature in Freetrade would truly let me ‘set and forget’ :heart_eyes:. Automation FTW :sunglasses:.


#10

I thought the same thing, but if you have a lump sum to invest, you’re better off investing the whole lot, rather than splitting it up in to monthly payments.

As that rather nuanced article notes, it’s still psychologically good to go monthly though, and of course it is the only practical option when you don’t have a lump sum and are just investing a proportion of your monthly salary. In this situation you wouldn’t want to build up cash to try and time the market: monthly payments are probably going to perform better (invest as soon as possible to benefit from gains in the market).


#11

I’ve not seen any other platform have auto-stops or the like. I’d suggest Freetrade just keep it simple. People are only going to regularly invest in something they believe they would buy every month regardless of price: an ETF tracking a “safe” index.

What is important to the implementation, however, is fractional share purchasing. When I set up a regular transfer in to Freetrade of £X, and ask Freetrade to invest £X in to ETF Y, I need 100% of X to be invested in Y, so there’s nothing left over un-invested by next month. If there is, things start to get very awkward and decidedly non-automated and very much not “set and forget”, which is what this feature should be about.

I can’t think of a use case for recurring sells, and it might be damaging just to offer it.


#12

There’s a need in the market, but whether FT want to address it is another question: people in the decumulation phase of their investing career (eg retirees) often pay investment managers hefty percentage fees to handle recurring sells for them.


(Dave Smith) #13

On other platforms that offer recurring trades any left overs just end up as cash in your account, it would work better with fractionals but it’s not a massive problem, I just let it build up till there’s enough to buy something


#14

Interesting. I guess I automatically re-interpreted this idea in my head to be my own version, which is “regular investment”, not “recurring trade”. I think with a “regular investment” feature you really do need it to invest everything so you don’t have to baby sit it. A basic “recurring trade” feature could work the way you point out, with manual intervention.

I actually vote for “regular investment” :sweat_smile:


#15

That is a pretty good article, thanks. Worth noting that the benefit of lump-sum over drip-feed is reduced if:

  1. you use a platform with zero trading fees (hmm sounds familiar)
  2. you end up being one of the minority of unlucky people who did invest that lump sum at the wrong time. Me, I like the comfort of averaging in, just in case. Minimise regret rather than optimise return.

(Tim Drew) #16

Lots of excellent feedback. I’ll flag this one with the team and we’ll see how we go re roadmap.

In the meantime, if you have any additional thoughts, keep them coming!


#17

I am voting for this feature too and hoping to see it alongside fractionals sometime soon: Fractional shares (UK)


#18

I thought this plot can show the potential of DCA (or regular investing) into stocks versus setting aside the amount under the mattress (and that will work only if you can resist the urge to spend that stash on the shiny bling :smiley: )


(Vladislav Kozub) #19

You can add the risk of fire or burglary to the ‘mattress’ option, which is someting that won’t happen to S&P 500 :wink:


#20

Excellent suggestion and believe it would be yet another unique feature on the market.