Sustainability of Freetrade

Would it be possible to have a vision of the future sustainability of Freetrade ?
I can sense with all the commission free brokers there is a doubt in many people’s mind before they take the plunge and start investing with their hard earned cash.
I feel it will help attract the people who are watching on the sidelines to take the plunge.
Freetrade have been getting my ISA fee since December and I love it :dizzy:

I don’t really see why it matters.

Broker goes bust you still own the stuff you’ve bought. It’s held in nominee separate to the company.

See:

https://beta.companieshouse.gov.uk/company/10998319

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Ok fair enough.
Lock :closed_lock_with_key: the thread !

Sure? Happy to leave it open of you think there’s discussion to be had?

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Everyone’s share dealing is as safe with freetrade as any other broker in the UK. Now with free instant trades, when the team at freetrade are ready, I’d like to know how this would affect (or if it was factored in from the start) the long term profitibality of the company to be able to keep adding great new features for all of us.

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It’s entirely up to your good self. Maybe i could have replied in the FSCS thread I remember seeing yonks ago :joy:.
People I know haven’t taken up their free share as they want to see Freetrade around for a few years.
How can they make money is what I get asked.
I have the faith. The platform will be used by huge numbers as it’s personally what I’ve wanted for years ! It’s the others :joy:.
I didn’t make the case for Freetrade even though I’m all in personally as I feel they can look for themselves and make their own mind up.

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Freetrade is in the rapid growth phase. Making money during this period usually tends to be an afterthought.

I can see an account charge being a pretty standard thing moving forward, as well as premium features account.

£3 for an ISA isn’t much.

But £3 per ISA, JISA, LISA, SIPP in the UK (not to mention whatevers available across the EU / Aus / Canada etc) will soon add up.

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It is normal for startups to make losses. But economies of scale play here. If Freetrade gets 2 million accounts in the next 5 years they will need more staff of course, but the number of staff and running costs won’t be proportionally the same as those need for 100,000. It’s economies of scale.

Another thing worth remember is compounding. Like investments a growth of 50% a year gets a lot more tasty in 5 years than it does in the first 6 months.

Think of how many people don’t know of Freetrade, but would use it if they did? The team’s job is to reach out to those people at the smallest cost possible.

The other thing the team had to be careful was overloading too quickly without the support to back up users. That would be a PR disaster. When it comes to people’s money and investments you want 0% negative publicity.

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Could there be a possibility for Freetrade to offer a B2B proposition. They now have their own platform so should be able to licence this out to other brokers? If so then could be a really good revenue stream.

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