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).

https://www.leonardcurtis.co.uk/svs/

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.

FreeTrade is a really good product, and I believe that it has a bright future. This is why I invested in it too.

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What features do you like most?

I just think it has an enormous potential. I am fascinated by trading, I really love my job. I am working on [link removed] for 3 years, and I am really succesful in that area. Besides trading, I also like investing, it can be very profitable, and I think that I can see the good in this company. I am sure that it’s going to become very big, it has a great idea at its base. I am 100% sure that it has a bright future, and I just wanna help these guys become better. I am sure that my investment is going to pay off.

How often do you use the app?