Even if it was 10x i’d still be investing (1/2 way). Please don’t use my terrible guesstimates as a guide and i generally do not factor in dilution because you simply never know how much that dilution will be.
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15 mins in and almost 100% overfunded at £1.9m. 
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Almost 150% overfunded now. Wow.
Seems bonkers the hype over freetrade IMO, trading212 is basically the same and robinhood is on it’s way over to the UK soon, sooo… what’s freetrade got going for it?
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Also I tried to sign up to freetrade and had a pretty awful onboarding. That might have improved, but as I said… not sure what else they have that is cool…
- Factional shares exist on multiple platforms
- ISAs, ETFs, multiple assets, multiple countries exist on other platforms
- Zero fees / commission exist on most other platforms that aren’t dinosaurs
Anything I’m missing?
Trading212 subsidises their product through CFDs. Over 70% of investors lose money through CFD trading. Its a very shady business model, IMO.
Robinhood by your own admission haven’t launched yet in the UK, so Freetrade have a clear advantage in the UK.
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Most people that buy and sell shares over short term horizons lose money, regardless of asset type. Some estimates are as high as 90% of retail investors lose money…
Also doesn’t change the fact that trading212’s invest or ISA platforms do that same that freetrade does?
Freetrade will make money selling order flow to high frequency trading firms, is that ethical? Same as they all do.
This is factually incorrect. They can not (it’s not permitted here, under MIFID II) and will therefore not do this.
Further easy to digest information here:
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The valuation at £140m is just silly.
Am I right in thinking the project revenue for this year is £5.2m? 26x projected 2020 revenue is nuts, especially in a year where trading platforms will experience higher than normal revenues due to market volatility/higher number of average trades per account.
Appreciate they’re growing but this is not a winner takes all market so not sure how they can justify such a rich valuation.
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Freetrade isn’t intended for short-term trading. You cannot compare an instrument - CFDs - designed to make customers lose money with general bad trading decisions.
The point is that their business model is subsidised by shady practices. Either they get away with it, in which case I want no part of it. Or people catch on to what they’re doing and avoid trading in CFDs, so they can no longer subsidise the share trading and ISAs.
This is wrong, Freetrade do not do this.
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“This is factually incorrect”, perhaps on UK listed stocks
https://qz.com/1751912/how-robinhood-plans-to-make-money-on-us-stock-trading-in-the-uk/
Payment for order flow is also used by other big American brokerages like Charles Schwab and Etrade, but it’s frowned on by UK authorities and generally isn’t used by brokerages that offer direct trading in London-listed stocks. It’s controversial because it can be difficult for
the customer to figure out how much exactly a given trade is truly costing them, and officials are concerned it could cause conflicts of interest.
Also, if Freetrade doesn’t make money like this, god knows how it will make money in a passive investing / zero commission world.
Bonkers to think it’s worth £140m.
Wow, you seem really invested (if you’ll pardon the pun) in putting down Freetrade. Why not go visit the Freetrade forums and try that approach over there? I’m sure they’ll welcome your input.
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Rid the slide deck on CC, they speak about their revenue streams
has anybody explained why freetrade is better than the altenratives/
Ah, that reminds me of what I read about Robinhood’s proposed launch - that they were proposing that when they launched in the UK they’d still run all their trades through their US brokers, in order to get around the UK law on not adding a markup on orders. A good reason for UK users to stick with Freetrade and not switch to Robinhood on launch, if that’s still the case.
I don’t know why but i actually clicked that link! God Damnit!
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If I’d had the time I could have registered it and made a fortune via google ads (or however it’s done!)
I just assumed you were trying to rickroll everyone.
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