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

  1. Why did Freetrade decide when designing the app or setting up it’s relationship with drivewealth that customers should not be allowed to buy specific number of shares?

  2. Do you foresee in the next 12 months a patch being issued to re-create this option?

  3. I’m worried of a flood of negative reviews on the app and a large amount of ridicule from competitors, or worse the national press. Is there anything you can tell me as an investor to alleviate my concerns?

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You always bought shares for an amount, and not a specific number of shares. I’m in the beta, still buying shares for an amount (and I end up with a fractional share on top of my whole shares).

So, the only difference is, I don’t have to think hard what I spend my leftover 17p on, after buying whole shares only.

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Do you plan on increasing headcount, specifically marketing, after the next crowdfund?

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What’s the business model now? How do you plan on making money going forward? I presume ISA fees are not enough.

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@Rollingskies has a very valid point, why can’t you buy a specific number of shares rather than just inputting a value? Personally I thought the 17p thread was a piss take when I read it, and it shouldn’t be used as justification for implementing fractional shares in such a heavy handed way.

So my question: how much external user feedback have you taken during the process of designing the fractional share functionality?

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That’s confusing. Fractionals were requested before Freetrade onboarded the first customer. So definitely a long time before the 17p thread was created. Source.

Even if that wasn’t the case. It’s confusing why a thread on dropping your last 17p has led to implementing a universal £2 minimum, when previously this minimum didn’t exist.

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Thanks for doing another AMA.

Q1: What specific improvements/features would you like to see on the Insights page by the end of the year?

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Q2: At last AMA we had a sneak peak at ‘Alpha’ account features (if I remember correctly, limit order types). Can you give any more details on features?

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Q3: You always have a fair few roles on the jobs board - is this a result of fast growth or slow candidates (so to speak)? Are there growth areas you are excited to work on, but just can’t find that right person to drive them?

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Congratulations :slightly_smiling_face:

I’ll attempt to summarise discussion points - if no-one has already volunteered.

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Kudos to you guys for being so transparent with the community. Keep the good work up! My questions:

  • What do the current unit economics look like? Is Alpha/Premium a necessity to go from negative to positive unit economics?
  • Do you still plan to launch France in 2020? Will you offer a PEA upon launch?
  • Can you share some user figures about Ireland & the Netherlands?
  • What is currently the most important acquisition channel?
  • Why did you choose doing a crowdfunding round before a VC round?
  • Where do you see FT in 3 years in terms of # users?
  • Can you share data about the current state of FT: # users, trade volumes, avg amount held on the app, retention etc.
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Will this be FT last crowdfunding round? You said you would do a Series B later this year. Presumably thereafter Series C and so on.

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Is the last AMA recorded it all?

Would live to see it prior to the next round of investment.

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Hey guys, thank you for taking this initiative. I would like to raise the following questions, if not redundant from the ones listed before:

  1. Could you please provide a view on your cash management given the frequent, precedent raises and how you anticipate to reduce acquisition / management costs as you scale up the business?
  2. Please provide your bird eye view on the competitive landscape shaping up around commission free trading
  3. Based on your customer acquisition tactics, what is now your customer retention strategy?

Many thanks again and looking forward to this Zoom call. Maybe a minor request but any chance you could share an outlook call invite with the Zoom details to the participants in due course? Appreciate that some of us may have hectic schedules and a nice placeholder in the calendar would be very welcomed.

Stay safe and sound!

Sandro

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Why can’t you add a placeholder in your calendar yourself? Just come on the forum 5 minutes before 8 on Monday and you’ll see the link…

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Are faster deposits or card payments in the pipeline? Bank transfers seem very random - for example the other day it was in the app within 20 minutes, but today (bank holiday friday) it hasnt arrived at all scuppering my planned purchases today. To keep up with competition I think Ft need to speed the process up one way or another.

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It wont appear on bank holidays.

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If banks are on the Faster Payments network (which any serious player is) then payments arrive within minutes, max tends to be 4 hours, regardless of what day it is. The network runs 24/7, 365 days a year so the payment will have reached Freetrade successfully the processing issue is then with Freetrade. Other UK brokerages do allow for Bank Holiday deposit processing so it is not an unreasonable post.

Full list of participating institutions can be found here: Faster Payment System - Pay.UK

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What’s the revenue model going forward?

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Maybe the reaction was driven by the fact that Freetrade sent out a private message to everyone one the app saying that bank transfers on Friday will not be processed until Monday. Can’t fault them if they’re telling you beforehand. :slight_smile: