Unhappy Investor

I invested in both of the last two crowdfunding rounds. I am unhappy for a few reasons and I’m interested to know if other investors feel the same. In summary my points are as follows:

  • App development too slow

  • Social strategy not influencer/creative content focused enough.

                               **App Development**
    

I use freetrade regularly as a customer. My concerns are as follows

  • New Stocks Why is it taking so long to add the stocks and ETFs? I don’t understand why you are not scaling this rapidly and adding far more stocks and ETFs very fast. Its too slow.

  • App data doesnt update properly Why is the app so slow at updating asset prices and purchases? The app doesn’t update the stock prices fast enough, it lags. In addition, It lags when you make purchases and its trying to calculate your new cost basis/ P/L. I’ve had occasions where I make a purchase and it incorrectly calculates my P/L on that asset because it hasnt correctly updated the cost basis for the shares. I’ve also had numerous situations where ive purchased shares and it does not show up in my activity log or on the share page for ages. Also bugs with trying to buy a share in Google for three days straight and it not processing.

This is simply not good enough if you want to compete!!!

  • Security - right now there you don’t log in with a username and password, you use a link in your email. This means if someones email is compromised they can lose access to their freetrade. No option for 2 factor authentication and you expect people to deposit tens of thousands of pounds?! not good enough. I cant even update my email address or address without contacting support?!

  • Stock Info Its taking FAR too long to make the graph functions better and add more information on the stock pages.

                             **Social Strategy**
    

Commission free trading is spreading like wildfire and at this rate you will simply become a feature on other peoples more complete apps, like Revolut and robinhood, if not others. It’s going to be just like when instagram stories started and snapchat got smashed.

The USP of freetrade needs to be that you have created a massive social community.

  • you need to hire influencers to make stock market content on youtube, or partner with stock market commentator youtube accounts.
  • You have about 2400 followers on instagram, ive seen people with 100k followers that post business/investing Memes. Seems pretty obvious to me that if you want mass exposure you need to make or sponsor viral content/accounts.
  • Discord/skype/facebook chat groups where people can discuss stocks.
  • Blog posts on investing need to be increased

Final thoughts

60k users might seem great now but with no fees on trading these guys need hundreds of thousands of users to create any meaningful revenue relative to their skyrocketing costs.

They need to roll out revenue generating features like cryptotrading, options or CFDs etc and the speed that they bring out features gives me no confidence at all.

Anyway just some general thoughts interested if anyone has feedback,

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I’d have to disagree with this conclusion. Commission free trading isn’t spreading like wild fire. Those who are offering commission free trading are doing so at a limit per day, offered via the 80% losses people make on cfd trading, or are (and possibly all are) offering at a loss to gain customers, or are gaining money through hidden fees or spread not mentioned to the customer at the time they buy and sell.

Quite frankly I think all of the small handful of platforms offering free instant trading will change their strategy once they have enough numbers of have haemorrhaged to much money.

The most used ones lay forms on the U.K. all offer paid instant trades still. The cost of those is coming down I would say, but I’m confident that free is unsustainable.

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It’s normal for financial application to not let you just update things like address without contacting customer service, Freetrade have to comply with AML regulations just like Banks do

I notice you invested in R5, That’s only a couple of months ago, how much progress did you expect in that time? I’ll admit I’m a bit impatient to see things like the European rollout and fractional shares, but we need to be realistic

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Here’s a novel idea for you.

Put two factor security on your email.

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You forgot to say its takes Freetrade over a WEEK to pay dividends and still waiting

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As an investor I’m delighted Instagram influencers aren’t being used. They’re a waste of money.

Having a high number of followers is meaningless when you don’t know anything about them, if they’re not all just other ‘influencers’, or even if they’re real.

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Freetrade is using best-in-class tools and processes. What would you do differently?

As for hiring more engineers, their career page shows they’ve got eyes on that target.

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I actually dont agree with this. From a security standpoint you cannot assume 3rd party systems are secure when you don’t have any insight into them.

Freetrade can detect that you have faceID enabled for example. They can not detect if you have 2FA on your email. So they have to assume you don’t and base security decisions around that risk.

The fact is most people simply do not have 2 factor enabled on their email.

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How is a week to pay dividends best in class?? that a basic thing for a stock broker no??

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They are on track to reach their 100,000 customers which is what they have promised.

Someone said they were advertising on facebook. Something is being prepared in the background. Growth might be ramping up.

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I invested in R3 and R5. Thus far, Freetrade has exceeded my expectations for a start up company in a competitive market. They’ve delivered an app which I trust enough to try to max out my ISA allocation and which I have recommendeded to friends and family.

I agree that the product is not perfect and that things are taking a long time to fix or develop but I for one am excited about what’s in the pipeline/roadmap: https://trello.com/b/W15ccViA/freetrade-roadmap

Someone set up a Discord server:

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I think that’s an Issue with that particular dividend, I received 16 Dividends last month with no issues, all within a couple of days of pay date

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I agree here, competition is coming fast and FT is too slow now. FT you need to wake up!

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As with every other startup there will be a lot going on behind the scenes. It’s not like everything has stopped just because it’s not yet public. Look to the future :blush:

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well the same share i hold with other platform that has paid me already so its Freetrade issue if its not here by friday im gone

After years of forking out at least £10 / trade ( Halifax, HL ) I’m a happy :freetrade: investor. Add US / European fractional trading soon and I’ll be a very happy investor.

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Would like to purchase your shares if you are not happy. Last round’s price.

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I can understand reasons for being an unhappy investor IN Freetrade. I’m baffled by anybody being an unhappy investor ON Freetrade - a clear distinct between the two in my eyes.

As somebody who has lost £14,872.96 in brokerage fees and commission (yes I have kept a record everytime) I can say that the service, including its startup style compromises, are weighted heavily in our favour as retail investors. I doubt anybody who has been a long term investor in the financial markets would sit here and be unhappy with the service so far

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Arent robinhood and revolut both going live in the UK?

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Yes…

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