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Freetrade

Discuss Brokers, trading, fees, experiences
anteos
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Freetrade

#170985

Postby anteos » October 3rd, 2018, 7:57 am

Hi

I noticed this on the techcrunch blog:

https://techcrunch.com/2018/10/02/freetrade/

https://freetrade.io

Its not for me as an ISA would cost £120/year to run, but I hope its as disruptive as it seems to be.
Hopefully a game changer.

Alaric
Lemon Quarter
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Re: Freetrade

#171008

Postby Alaric » October 3rd, 2018, 9:58 am

anteos wrote:Hopefully a game changer.


If there isn't some way for it to generate income to pay expenses, it's going to die as soon as it runs out of capital, leaving holders with the problem of how to retrieve their assets from liquidators. Perhaps it isn't always buying the stocks, perhaps like Delgiro there's stock lending and contracts for differences involved. That may explain why they are charging for ISAs as virtual stocks aren't permitted.

Cookie
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Re: Freetrade

#171249

Postby Cookie » October 3rd, 2018, 10:37 pm

Yes, it's difficult to see where they will make their money. Yet Robin hood in the US do it and also there are already low cost regular investment schemes which batch investment

Is there any scope to buy from these or Degiro and then transfer to a safer holder?

Another article
http://www.altfi.com/article/4764_exclu ... e-launches

Alaric
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Re: Freetrade

#171256

Postby Alaric » October 3rd, 2018, 10:52 pm

Cookie wrote:Yes, it's difficult to see where they will make their money.


If they are dealing once a day, there's a possible margin from the spread between buy and sell prices that will be available once the system matures. In other words dealing once a day enables buyers to be matched with sellers and only the net change put through.


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