While Freetrade Support sort-of convinced me we won’t really see short selling option with Freetrade unless there is a substantial interest , I am still stubborn and feel the need to comment.
Yes, short selling is extremely risky. It is not for everyone. It is not for investors - it is meant for traders. Freetrade is meant to be an investment platform. It’s all well understood. However, fees that Freetrade plans to introduce (or lack of any besides Alpha plan which is a bargain) sound extremely attractive for everyone - even more to traders than investors. I am sure that many experienced traders will want to save hundreds of dollars per month simply by choosing a new broker! And experienced traders will want to have the ability to short sell - even if it is limited for intra-day trading.
Again, I understand that Freetrade is not meant to be for day traders. But the amount of money a day trader may save with Freetrade is substantially higher than the amount of money that a long-term investor could save. Long-term investors execute only a few trades throughout a year anyway. Alpha pricing plan seems to be suited to anyone who trades frequently, so it’s a bit peculiar that there is a system appealing to traders, but then common trading practices are discouraged.
Perhaps, include an additional pricing plan for traders wanting to short-sell? Add additional terms and conditions, i.e. notes to new traders so that they are aware that short-selling is probably not for them? If those two things/barriers (illustrative examples how risky it is if you do not know what you are doing and the fact that you need to pay more per month) do not turn beginner traders away and they go all in, they do not cut their losses on time and they lose everything through short-selling - well, hard luck haha…there were multiple ‘filters’ along the way which could have stopped them on time.
Also, as I said, consider the option of introducing short selling intraday. There is much less risk involved compared to the situation where you keep shorting overnight.
Hope this makes sense. I will continue watching how Freetrade develops.