I like that Freetrade exists. But they are such a small startup with very little progression on the platform. Their biggest update was to allow instant buys. Big freaking deal for us. Also these rounds of crowdfunding create shills that only promote the platform because they are invested in the company, not based on it’s merits.
It’s good that it exists because it challenges the notion of paying such high commision from the traditional brokers. It’s filling a large gap in the market for more ordinary people. But if it remains this uncompetitive, with a continual need to seek funding, I don’t see how it can survive. Healthy competition is good for us, the consumer, but it seems that there is only one company leading the way in Europe .
The business model of T212 has a much more professional business structure, generating their own private profits. I like it when a company says “we don’t need any funding” and have 0 debts. They have also been rolling out substantial improvements to their platform, with more to follow this month. Props to T212, it can’t be easy to shake up an industry all by yourself. Also shows what an incredible job they’ve been doing.
Edit: If a traditional broker like Fidelity, II, IG or a bank decides that they want a piece of this and go commission free, Freetrade will be dead in the water. Their only USP at that point would maybe be a nice UI on their phone only app. Their only USP now is that they are the only alternative to T212 if you want less features and want to pay money for your isa “because it makes you feel better”.
T212 will still maintain it’s edge with fractional shares and soon the “Pie update”. Moving broker would provide little benefit. The only one being, access to markets like Japan and Korea, which will hopefully come anyway.