Freetrade crowdfunding

So FreeTrade are crowdfunding again this week. What do people think about that?

I invested last time but, as mentioned on another thread I am in the process of switch to Trading212 as they are now a proper stockbrocker and not just CFDs and I prefer their product at the moment. I’m quite interested in the “pie” they’re developing (set your stocks/ETFs as a ratio and it will buy fractionals in them each time you top up).

I do think FreeTrade is a good product though, but with T212 and RobinHood launching soon (I think?) I’m not as confident it is going to stay ahead.

Fact that they do CfDs still mean that the broker itself is exposed to an unacceptable amount of risk (and this isn’t just talking about risk of clients defaulting, but the regulatory & reputational risk as well).

That is a good point. My (probably incorrect) understanding though is that FSCS protection applies to the shares (up to the £50k limit of course) if the client defaults etc. ?

If (I ever) have that much in a S&S ISA I think I would just pay the fee for one of the larger brokers in that case anyway.

With any broker your funds and shares are yours, and are ringfenced from any company accounts. If any of them go under, they should have money set aside to help you move/sell your shares and withdraw your cash.

Just to add (though maybe this needs a new thread)… Interactive Brokers are actually the custodians of the shares, and they’re not going bust anytime soon.

Anyway, back on topic. Freetrade just announced they are the 3rd largest stockbroker in the UK (by number of trades, not value) and there is clearly a space for both of them in the market.

In the long term it could be that their Invest by Freetrade platform is better than using a third party.

What features do you like most?

How often do you use the app?

Hi Fiona,
Are there any specific elements that you like about FreeTrade or is it mainly that they off Free Trading of shares?

Don’t get your hopes up for a reply from ‘Fiona’. I’m pretty sure she’s not real - or at least not who she says she is.

Only ever connects through VPNs, goes back and edits posts to include spammy links and, unless I am very much mistaken, is actually in Moldova. Just like the multitude of other spammers I’ve blocked in the last month.

They’re currently blocked from posting until they prove me wrong.

1 Like

Ok - thanks for heads up Liam. I wont hold my breath!!