As per the title, I’m tempted to upgrade to FreeTrade Plus. I don’t like the stock limitations on the free version nor the inability to place limit orders. I have a small FT portfolio of around £1,500 and also have £1500 in an H&L ISA - but of course they charge £11.95 per trade as well as FX fees. Hence why I am considering FT Plus.
However, multiple sources online seem to suggest the PLUS subscription is a flawed business model that will hurt the platform in the long run - and they advise against it. e.g.
Naturally people who have invested in the Plus stocks before they Plus launched will not see the value of Plus (as per some of these reviews).
If you’re coming from a HL or AJ Bell then it’s fantastic value.
FT needs to make money and other comission free brokers make money from their users losing money. Is that sustainable?
Thanks for the replies. A couple of further newbie questions if I may.
1) With a Plus account, does it allow you place limit orders on US stocks?
2) A few days ago, I held a US stock in my GIA. The stock closed at $38. At around 10am GMT I placed an order to sell my holding, hoping to lock in that price of $38. However, when the order was executed at 3pm GMT I only got a price of around $36 per share. Where did I go wrong? Would having a Plus account have made any difference in this scenario?
The market does not open with the last price of the previous day. There is after hours trading as well. Also, freetrade executes orders that were made outside of market times at 3pm. The US market opens at 2.30 though.
I’ve joined plus last month to access additional stocks however I’m not sure I will keep it.
Freetrade describe’s itself as a platform for small investors. However, 10£ a month is not a good investment for anyone with a portfolio worth less than say 5k.
I believe a lot of people investing in individual shares will enter and exit positions at least a couple times a year, specially having access to smaller and more volatile stocks in Plus. Limit orders also provide an incentive for increased trading.
Because FT doesn’t allow holdings in dollars, going in and out 2x per year in plus will cost 1.8%. Adding 10£/month on a 5k portfolio we’re looking at a total of 4.2%.
To make it more attractive for smaller investors, FTPlus should be cheaper if the FX rate is to be maintained. Revenue loss could be offset by more people joining Plus, trading more often and paying those FX charges. This would allow for a true easy access to the markets for the small investors.
If you are a passive investor and go with a Vanguard ISA, they charge a 0.15% ISA admin fee or platform fee. This means if you have more than 24k in your FT account you are better off with the FT ISA. For Plus members a pot value of 80k or more is required to beat Vanguard’s platform fee. Obviously the comparison is not completely fair, however, costs are the main distractor of long term performance.