Why would I choose Freetrade?

[Raul (Ann Onymuz)]

Hello @777GE90

@777GE90

I did not share the name of the broker as I don’t want to be advertising, if a mod says it’s ok then I’ll happily do so

@Freetrade_Team1 is the moderator of this forum and he posted

@Freetrade_Team1

I did not share the name of the broker as I don’t want to be advertising, if a mod says it’s ok then I’ll happily do so.

Please feel free to name and talk about other brokers here

Hence it seems to me you now can share the name of the broker you mentioned.

In the recent past I posted about other brokers

Tickr is coming soon to Seedrs

https://tickr.co.uk/post/does-impact-investing-mean-sacrificing-returns One more fintech crowdfunding on seedrs. At first glance seems like a roboadvisor or did I miss something?!

And others have done it too. Here are a few examples:

Tickr - ESG platform

Came across these guys via a colleague. Initially very intrigued and interested as they are saying they will be a different ESG platform (like Nutmeg/Wealthify etc, but specifically focussed on Environmental, Social, Governance issues, and similar impact investingthemes). Summary: platform for thematic ETF portfolios based on Climate, Social Impact, or Tech Disruption, or a combo of the three, as well as classic three stage risk allocation (cautious, balanced, adventurous). I was quite disa…

[Crowdfunding ] Evarvest

There is also a new app coming to Europe and crowdfunding soon… https://www.evarvest.com/

Trading 212

Sorry if this has been asked before, but here goes. US has Robinhood, and UK has 212 which allows zero commission trades on stocks. What Unique Selling Point does Freetrade have over either of these?

eToro

I almost missed this but eToro have launched a service to enable users to buy shares (not CFDs) on their platform, without charging stamp duty, although they do have a spread of 0.99%. There’s no mention of ISAs in the press release either. Obviously they offer a pretty good UX so this is probably worth keeping an eye on. Has anyone tried it out yet? Also, don’t miss the small print **eToro reserves the right to withdraw the practice of absorbing stamp duty in future.

Here are 3 reviews for eToro:

eToro Review - A "Must Read" For UK Traders. Includes 'How To' Guides

eToro Crypto Review 2024

eToro

Amongst other things, according to those reviews, there’s a minimum deposit of $200 (circa £150). Unfortunately, there are many people for whom this is a barrier to entry.

Trading 212, on the other hand, according to this review

Trading 212

has a £100 minimum deposit. Unfortunately, this is also a barrier to entry for too many people.

With Freetrade I can start with as little as £1 or even £0.01. One penny. Of course with one penny I can’t buy much if anything, but that’s not the point. The point is, generally speaking, the barrier to entry has been removed.

Also, in the near future, Freetrade will have fractional shares. I think this is huge. A huge incentive. I can buy £20 worth of Amazon, or Tesla, or Jonhson’s & Johnson’s. Or £1 worth of Apple or EssilorLuxottica.

Everybody has different wallets, or different pocket sizes, or different cash flow streams. Everybody has the ability to save money every month. Just different amounts.

Also what @Rob14 said

@Rob14

Freetrade’s purpose is to help long term investors, separating it from nearly all other brokers who mainly encourage trading. I think the portfolio chart over time (while not perfected) is unique amongst stockbrokers and shows where FT is heading. It will soon compare you portfolio against a benchmark and release it’s analytics tab giving you further insights (perhaps identifying risks) as well as an autopilot feature to rival Robo-Advisors, giving you control and without the excessive costs. If you’re a long term investor it is sensible to go with a company that is built for your needs.

777GE90:

what appears to be Freetrades USP

• Built for long term investors
• Clear, simple and low pricing
• Transparency and community focus
• Shares priced in pounds and pence, rather than just pence
• Autopilot robo like service (in progress)
• Analytics tab (in progress), portfolio chart against benchmark (in progress)
• UX
• Further innovation (any secret plans! )

sendu:

there’s no particular reason to choose Freetrade over T212 right now that I’m aware of.

I think T212 will follow a similar path to IG: it will lure customers in with low commissions and then pressure them into trading frequently or using CFD products (where 80% of clients lose money and they make a lot). E.g. IG introduced a custody charge £24 per quarter for customers unless you use CFD’s/spread betting or trade frequently. The T212 app’s confusing, particularly for new investors, CFD’s and real shares are muddled in together looking the same. I have no doubt it’s luring some investors into using CFD’s and that they’ll be losing money

It seems to me you’re scanning the market, doing your due diligence so you can find the best sevice provider for your particular needs.

I’m glad you consider Freetrade in your journey. By the way, have you seen

https://www.dabblinvest.com/

they offer 3 free trades per month.

I’ve looked into quite a few brokers myself. And they all have charges, one way or the other. And that’s because they have expenses and profit targets. Nothing will ever be completely free. Look at Robinhood the

@777GE90

big (and completely free) broker from the US to enter the UK market

I suppose.

A few years back I considered opening an account with Vanguard and get one of their tracker funds. In the end I didn’t because there were a montly minimum deposit of £100.

Once again, welcome to the forum and feel free to share the name of the other stock broker.

If you consider Freetrade it’s not the best option for your personal circumstances I think that’s ok. I wish you well and a boat load of profits in your investment journey, regarless of your chosen broker.