Zoom AAA #4: Ask Adam Anything: Freetrade Founder & CEO Adam Dodds. 12th May @ 8pm

Freetrade Chat 🔥
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EDIT 2: Thanks for coming, everyone! We really enjoyed it and we’re looking to up our Zoom participant limit to 1,000, to accommodate everyone!

EDIT 1: ZOOM LINK: [deleted]

Following the recent jam-packed ‘ask me anything’ Zoom meetups recently with Adam, myself, and CTO and Co-founder Ian, Freetrade CEO Adam will be back on to take your questions!

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Tuesday 12th May
8 PM

The best topics

  • Crowdfunding
  • Product
  • Vision and company stuff

If you are planning to come

  • Like this post, so we get a sense of the crowd size
  • Post any questions below
  • Like the questions Adam should tackle first
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Thank you for taking the time to do this. Shows Freetrade is willing to listen.

What are your plans around fractional shares, seeing as they have just gone into beta?

Will you allow the purchase of integer value of shares?

If someone wants to transfer out of Freetrade and has 5.5 shares, can they sell 0.5 shares and then transfer out 5?

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Please can you explain the rationale behind the decisions to introduce a £2 minimum for trades and more importantly the decision (if it is indeed a final decision) to offer only fractional trades in the USA rather than both fractional and whole share trades.

They both feel like regressive or at best sideways moves compared to some of the market competition.

Thanks Mike

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What are the barriers behind not allowing the flexibility between purchase by amount or purchase by number of shares?

Will this be something that you will offer in the future? If not, why not? (as the feedback behind the fractional beta has been quite clear on this)

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What date will the crowdfund be?

When can we expect European shares? and European fractional shares?

When will you launch (properly) in Europe?

How large do you expect the stock universe to be by year end? (How many hundreds or thousands of stocks in total, and which exchanges?)

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  1. Is the likely to be an accompanying institutional round this year?
  2. Is there likely to be another crowdfund going forward considering EIS eligibility and scale of funding needs?
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Your Order Execution Policy was updated last month and details how US orders get sent to your US broker, i.e. DriveWealth.

According to DriveWealth’s legal pages, they partake in payments for order flow for some orders. This wouldn’t be allowed in the UK. Their broker’s CEO is also an advisor to their board. Is there a conflict of interest there to the detriment of Freetrade customers? Will Freetrade users be getting the best possible prices available for US-listed securities going forward?

Would you be wiling to publish, for a given time period, how close prices paid by customers were to the live price, and have that independently verified? I can see Hargreaves Lansdown achieves a variance of up to 0.04% from the live price for 99% of its orders, and AJ Bell also has their data downloadable. What is your target for this, and what has it been so far?

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What is the cost to FT to list a new share.

Do you ever imagine to hold the majority of UK shares and what time scale would this be.

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Don’t know if this was asked / answered in the last vlog, but…

Any plans for an iPad &/or Apple Watch app?

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Could someone please volunteer to summarise the main points? :pray:

We are expecting our first child to be born very soon and while I would love to attend and hear all about fractional share ownership, I don’t think that will be possible!

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  1. What feature are you most excited for that’s on the roadmap in the next 6 months?
  2. When do you think you will be able to share more details about Alpha?
  3. What do you see as the biggest threat to Freetrade’s success?

Thanks team!

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Congrats, Phil!

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Seeing as noone has provided an answer from last week’s ama…

Can we have 4 decimal places please on share prices. Perhaps with the two dp after pence in slightly smaller writing… :blush:

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What features do you have coming up that might be small but delight customers? What are you particularly excited about in the future?

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I would like to hear as much detail as possible about the Alpha/Premium/Paid tier/service level. This is the most important item required to make Freetrade a sustainable business. I have heard management mention that it will contain lots of great surprises, but I would like to start hearing some concrete plans and timelines please. Thanks and look forward to the discussion.

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Added this to my calendar! No missing this one! See you on Tues @adam

With the roll out of free instant trades, how has this affected the Alpha model? Can you let us know any key features for Alpha?

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It seems there is great appetite for the upcoming crowdfunding round. What influence does this have on the valuation you decide on? My understanding is you intend for crowdfunding to be part of the funding mix for some time to come. What contingency plans do you have in case crowdfunding investor sentiment takes a turn for the worse for whatever reason, perhaps at a time in the future? I have seen multiple times how negatively investors can react to a down round and what a ‘turn-off’ this can be, even if brought about due to wider economic circumstances.

How do you take advantage of the huge desire to invest to optimise valuation and equity given, without jeopardising a.future crowd fundraising under different circumstances b. VC relationships and participation?

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