You’ll be able to buy shares and ETFs on Freetrade, without any fees. Currently, you pay up to £12 / transaction (+ platform fees, and who knows what else) to do that at Hargreaves Lansdown and similar companies, which would be our competition, although our community consists of a younger demographic whom are locked out of investing due to those high fees.
Nutmeg and Moneyfarm are robo-advisors. They give you a “ready-made” portfolio (usually you can choose if you want low risk vs. medium risk vs. high risk, and your potential upside is supposed to correlate inversely). As far as I know, those portfolios are made up of ETFs. I could be wrong, so if anyone is a robo expert here, please add your insights.
We build Freetrade for people who want to directly buy shares of companies in the UK, the US, and beyond - but have been discouraged by the extortionate fees in the UK. We think it’s important to enable that. Almost everything in modern life is made or provided by companies. And companies are the main way wealth is created in the world. Our generation should have access to that.
Another reason to buy shares over portfolios (for me personally): I want to invest into companies I believe in. When you invest in companies that you believe in, you profit when they do well, and you support their mission. So, buying shares in e.g. Tesla is more than a transaction for me. I buy into Elon Musk’s vision of an electric future, and own a piece of a company making change in the world.
I’m not a financial advisor, nor do I play one on the internet, but wanted to give you some context why someone would want to buy individual companies’ shares (although for more “instant diversification”, we’ll have ETFs).
Robinhood is the most similar company to us, this is a great recent article about them.
Currently, we plan to open stocks & shares ISA accounts.
The automatic money sweeping is interesting! I’ll discuss it internally. Let’s say you have a £50 budget to invest / month (a lot of shares cost more, but that’s not a problem, as you’ll be able to buy fractional shares with Freetrade). You could just get your monthly investing budget from your CA into Freetrade, which sounds convenient.
I feel the same way (I’m with IG). You are exactly whom we build Freetrade for! Right now, we are heads down, focusing on the app, and any integration or partnership discussion would be a distraction. But over time, that could be interesting to look at.
FWIW, I got my Monzo CA a few months ago, and I never want to go back to Barclays again. I’m personally a fan.
Top notch response!
You could even hold spare change in a pot and allow investment once it hits a trigger.
Eventually you should hire advisors to provide free advice on what too look out for / follow a professional persons trades to get more returns.
@v18n Would love to see Monzo intergration! I’m sure its on your to do list once the CA is open to all
Triggering investment when your available cash reaches £X (that you set) is an interesting idea. It could be “freed up” for investment, or you could have a rule, e.g. pot has £X, and Tesla’s price hits $Y -> buy (until Z date). We like automation.
Regarding advisors and following, we already see some community members who’ll be interesting to follow.
For now, our focus is on the core app, but these are very interesting ideas. I hope you signed up because we want people like you on board!
Definitely, something to look at when the time is right.
For now, we focus on the app.
Registered. I like the idea and concept so looking forward to giving it a try. Not got massive savings so other investments have always put me off with the high fees
Thanks for those who clicked on my link. I’ve received three emails to say people have signed up. It the tracker says it’s only two people.
We Brits love a queue.
Queues are indeed… kind of liked here (and they’re much better than chaos!).
The one missing referral likely didn’t verify their email. Message me your email, and I’ll check.
Thanks for using the referrals everyone, I’m now in the ‘you will be one of our earliest users’ group. They do promise more goodies if people use the link though - intrigued to find out what!
I’ll let you know what it is if people keep clicking… http://freetrade.io?kid=H1PQ1
Ah, no problem. It was the email that confused me. I’ll queue patiently
Thanks @v18n for all the extra info and thanks a lot to those of you that bumped me, looking forward to getting onboarded now
Thanks everyone! I’m up to 503 now!!
Just in case someone hasn’t already used one of the links further up the page and would like to use my referral link:
and likewise if anyone would like to use my referral link
I’m number 71 now. Excellent.
Ah man… I’m only at 72