At the start of last month, I joined James and Ettore as part of the Freetrade design team and I wanted to take a moment to let you all know about a new little thing we’ll be rolling out pretty soon.
You’re probably all pretty familiar with this little bit of our app . You’ll be seeing it every time you buy or sell shares. For the most part, it’s pretty slick (even if we do say so ourselves). However, we’ve seen one issue occurring much more often than we’d like…
Look familiar? We really hope not - but, if it does then this is for you.
Before we look to improve this we first needed to understand why it’s happening so let’s start there.
When you place a Basic order (you know, those free trades you’re all so fond of ) what we do is queue all of the orders ready to be executed at 4pm. This keeps our costs down and allows you to buy and sell for free.
However, in the time after you place your order and until 4pm when we execute it, the price will fluctuate - usually only by a few percent. In most cases this is no big deal but if the amount you enter is the same as or very close to the exact price of a single share then these small fluctuations could bring the share price above the amount you have reserved for your order causing it to fail when it’s executed.
Now we’ve got that out the way let’s get back to the interesting bit. As you probably know we’re working hard to add US stocks to our universe.
I’ve been tasked with making sure you get to see your hard earned £’s turn into the $'s that’ll be used to purchase those oh so shiny, no-emission Tesla shares . Something we noticed, however, is that that with US stocks come some much more expensive shares - we’re looking at you Amazon - which means that few percent can end up being a much larger price change.
Because of this, we decided to take a look at ways we can help you place orders that are more likely to execute successfully and to bundle this in with the upcoming release of US stocks.
We began by exploring many, many options and came up with a few solid ideas that we felt had some potential. Though it’s worth noting that this is hopefully a short-term problem as once we offer fractional shares none of us needs to worry about orders failing in this way.
So… to recap we want something that will:
- Help people (both experienced investors and people who have never done it before) place orders that allow for the fluctuations in share price.
- We’ll release this alongside US stocks so it needs to be easy to build so as not to delay US stocks.
- Be quick to remove so as not to delay the work on fractional shares.
So after a few rounds of revisions and a little over 100 comments later here’s where things stand right now…
This will give you all a little more information when placing your orders and we’re quietly optimistic you’ll all see less failed orders.