As you might have heard in the April meetup, we’re focusing on building our new Investment Platform, so we can add thousands of stocks to our app very quickly. (If you haven’t yet checked out our app, you can try it here).
Meanwhile, you’ll see a little bit of slowing down before we can speed up.
We can see that many existing US stocks are among our most popular:
OK, but how about this year’s new US IPOs?
We can already see high demand for these in our app:
We’d love to introduce these stocks to Freetrade instantly, but in order for us to do so, we currently need something called a CDI.
What’s a CDI?
A CREST Depository Interest (CDI) is a UK security that represents a stock traded on an exchange outside the UK, in this case, the US. CREST itself is the central depository which holds UK equities and gilts as well as Irish equities and other international securities.
Great, so when will a CDI be created for my favourite stock?
This depends on the individual stock.
Generally, the higher the demand in the market for the stock, the more likely it is a CDI will be created in the UK. CDI’s are expensive to create, so unless there is this large demand out there, a market maker (an institution which buys and sells large quantities of a stock, creating liquidity) won’t go out there and create one.
Once a CDI has been created, we can then explore introducing this stock onto the Freetrade app. But it’s out of our control for now, and we can’t give definitive dates on new stocks.
Here’s our 2019 IPO tracker:
|Stock||IPO’d yet?||CDI created?||On Freetrade?|
|Cloudflare||Public||Not yet||Not yet|
|Fiverr||Public||Not yet||Not yet|
|Peloton||Public||Not yet||Not yet|
And there’s good news!
As mentioned above, we’re creating the Investment Platform, and we won’t have to rely on CDI’s forever.
We’ve used them up to this point as they were the best way for us to introduce US stocks.
However, as part of our Investment Platform, we’ll be able to offer direct access to US stocks very quickly after they’ve launched. We’ll be doing this later in the year.
As always, the best place to get updates on new stocks is right here on the forum.
In the meantime, you can also vote for your favourite US stock.
Stay tuned for updates!