Freetrade Investment

Who knows what business models will work in Fintech, early days yet… I don’t think an attitude that rules out subscriptions is very sensible tbh.

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Trading212 are not ruling it out, they will also introduce an advanced subscription for additional revenues. Maybe both Freetrade and T212 will crack the fintech subscription model, and I sure hope Freetrade do otherwise my investment is a writeoff.

Interactive investor, the second largest stockbroker and fintech (held within the Augmentum listed fintech fund) uses a subscription model successfully.

This works for a fintech stockbroker already and is thought to be the model which other brokers will slowly move towards, the trouble legacy European brokers have is they’re too dependant on trading fees (e.g. De Giro earns 90% of revenue from these). It’s going to be tough smaller legacy brokers.

I value the exceptional transparency that Freetrade gives on how it makes money, it really is a breath of fresh air in an industry which is still having scandals

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II was founded in 1995 - and imho its not really a fintech. It started off by using Halifax’s white label share service and most of its growth in customer numbers has come from acquisitions of other brokers (it’s majority owned by VC J.C. Flowers)

Also, it offers a free account enabling customers to access all the share prices, news etc.

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It will be classified as a fintech, it was actually on the cloud back in 2013 using AWS, but yeah I know what you mean it hasn’t really innovated, the product isn’t great, it’s mainly been focussing on acquisitions. It’s definitely not the same breed as the newer generation of fintechs, but does illustrate my point on subscriptions in the stockbroking space.

(Ownership will have changed following the acquisitions, Augmentum was the earliest investor 7 years ago as far as I know).

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If anyone missed it, I’m selling a couple of shares:

Your post and the buy/sell thread have been removed; it appears Freetrade will no longer support soliciting for sales on their forum.

Selling at £2.51 now is unappealing as there’s no EIS on your shares for the buyer, so they’re better off “expressing interest” to Crowdcube and picking up shares after the cool off periods which end this week and in July. During cool offs, some pledge amounts are removed which frees up EIS eligible investment for anyone still interested in buying.


If you want liquidity anytime soon, I suggest you lower your price considerably, and at least by 30%.

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Good. Investing in startups isn’t a get rich quick scheme. Invest, if you want to INVEST.

Folk trying desperately to sell Monzo shares was v annoying, too. Glad they shut it down on Freetrade, too.

And before anybody jumps on this, I hold a few thousand monzo shares and could do with the money, too. if you choose to invest in startups and want them to grow, give them space to do it. Otherwise stick to gambling on public markets at eurphoric PE levels.

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Might need to indeed, open to offers :slight_smile:

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“Active mobile users in the U.K. for the last 6 months” apparently:
image

Surely this ain’t right for Freetrade as their latest pitch deck was 70,000+ actives, 40,000+ making a trade.
Source: AppAnnie via T212

10,000 users per day, and that’s a weekend number, so probably about right.

As for their second largest volume statement. That’s volume, not value, so they could very well be making ridiculous numbers of trades

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Ah yeah good spot, that’s sneaky tbh to quote a weekend number but guess it’s the same comparison for all.

But then even so the blue line for Freetrade doesn’t breach 40k at any point during weekdays by the looks of it. Daily active users insight is interesting.

You’d expect to see higher numbers of during periods extreme market volatility we saw during the early phase of the crisis. Key question: what defines an active user?

To Eden’s point, the LSE figures Freetrade are quoting could be driven by the sheer volume of trades by those users.

Interestingly, if we assume these numbers are accurate, you could read a correlation between features of the platforms and numbers of ‘active’ users. I can attest that the platform is limited in functionality and ease in terms of funding and client experience. Would also add that Revolut isn’t a particularly useful comp because it’s effectively far more than just a broker. I’d like to see IG up on the graph too.

@Theodore why not pose the numbers question to Freetrade?

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I have on various AMAs. Was more curious about interpreting this particular graph, but I get it now

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Update: it’s daily active users (who open the app) which tbh is a metric I’m intrigued to see more about as an investor.

Better midweek graph data point here:

I see this stat as an encouraging one for Freetrade, not one to be embarrassed/defensive about.

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I’d be interested to understand how it collects the data.

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Going by their website, it’s looks like anonymised App Store data they can access which I think is reasonably accurate and not something that wouldn’t be accessible.

I’d be more interested in the “frequency of use” metric too:

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