Thatās why fixed fee works our better in the long term. For new investors thereās nothing wrong with vanguard, but even with plus itās one of the cheapest fees around. Most places are more expensive after a single trade.
Fact is things cost money and the days still holds true your either the customer or the product and if your not paying anything then youāre the product.
Iām not sure they have gone back on what they said, for as long as I remember, they have stated that they would be introducing a paid for āalphaā level of account. They have to make money some how to maintain operations.
212 for instance, offsets the cost of running their invest platform through the money they make (and the losses their customers make) on cfdās and derivatives trading. Thatās not uncommon for that type of account broker and freetrade decided from day one, they didnāt want to make money that way.
212 might be best for you for now while freetrade continue to add value to the plus account, just try not to get tempted by derivatives.
The problem with the finance model that T212 uses, where it requires the money made from CFDās etc to run the āfreeā part of the platform is that they require a continual influx of new customers to maintain the cash flow. With 76% of customers losing their shirt on CFDās it doesnāt take long for them to be ex-customers.
I used to be a bookie with William Hill, so I know the gambling industry extremely well. The whole gaming industry is geared up to getting new customers to replace the ones whoāve gone broke. T212 is following a similar model.
I prefer FT because, although getting more customers is great for the business, you donāt need to obsess about getting the numbers up, because customers should be around longer with FT, and thus bringing in a steady income. ,
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