Freetrade 💸

Doesn’t the W8-Ben reduce the tax on dividends from 30% to 15%? If I’ve remembered that correctly it’s included so people are aware it’s not treated the same as uk stocks in the ISA

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You are totally right.

This allows them to withhold US dividend tax at the appropriate treaty rate, 15%

I thought it was fully claimed on your UK taxes and done that way round. My mistake, you are totally correct!

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Freetrade’s shared their Christmas list for 2019. I’m quite surprised that they’re adding 7 day support (given that the markets are shut at the weekend) but that’s good for their customers.

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Any news on the platform that will massively increase the stock universe and set them apart from competition who mostly use intermediaries?

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@Marsares what feature on this list you are most excited about?

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I haven’t heard any :sweat_smile:

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Would have been fractional shares, but it’s not on the list. In the absence of that, the alpha account.

But really, I think they need their investment platform so they can massively increase their stock universe, and they need fractional shares.

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If you read the Medium article, at the bottom under the list of what’s coming they have written:

" 2020: Acceleration :hammer_and_pick:

The big one. A juggernaut representing the size of Freetrade’s ambitions, our Invest Platform is the single most significant piece of engineering work we’ve undertaken.

Phase one will see all customers migrate onto the Invest Platform in December, enabling us to release features fractional shares, thousands of US stocks, and more early 2020."

So looks like fractional shares and more stocks are on the way.

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Indeed. long awaited one. will make me a happy customer if I can have more investment options.

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Thanks for that, clearly missed out that piece when I was speed reading it!

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It wasn’t obvious. You’d think they would have made slightly more effort to highlight it as an update that’s coming to the platform. It seems to be the main request I see people posting to ask for.

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And would alleviate a lot of nervousness about the seemingly slow development pace, even more so in the face of ever growing competition.

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This just came out.

& a bonus -

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Freetrade’s about to begin charging £3 a month for their Stocks & Shares ISAs.

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Seems a bit steep to me. £36/year for something you come to expect as a hygiene factor.

I get that they look for ways to make money, and a subscription model for an ISA is the logical starting point, but I doubt that the average pot size of their users is high enough to warrant a £36 expenditure on top of it.

For £3/month I’d expect more, previously they said that unlimited insta trades would be part of the mo that charge. Surprised it’s not on there.

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Out of interest, what would you consider enough to make the £36 good value?

You might be confusing this with their Alpha subscriptions, which were previously shown as £7 per month on the website? They’ve removed all of the details about the prices and what’s included now though :thinking:

Something like £7,500, which then equates to c. 0.5% charge per year, which seems reasonable for a digital platform.

Ah yes, you are absolutely right. My mistake. I do wonder when the Alpha account will come out, I should get a year’s free of it due to my last crowdfunding investment.

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That seems fair, I think they’d argue that you need to consider your cumulative gains, both in terms of returns and the limit on your contributions each year. But I expect a lot of people will stick to doing that sort of calculation instead.

True, but I’d suspect returns will be much more volatile for most DIY investors than if you just stick your money in a fund and let it sit there.

After all, most DIY investors aren’t as proficient, may be driven more by emotions or bias, and with a small amount of money it’s not always easy to create a balanced portfolio.