Freetrade Unveils its New Platform for Trading Stocks and Shares

Freetrade Unveils its New Platform for Trading Stocks and Shares
25.07.2016 11:00 am

Freetrade Unveils its New Platform for Trading Stocks and Shares

Trading Systems

Freetrade has announced today that it will be launching its disruptive new platform for trading stocks and shares, which brings proven commission-free trading technology and fractional share dealing to the UK for the first time.

Most people, especially Millennials, are priced out of investing on the stock exchange. Costly broker fees, typically around £12 per transaction, prohibit smaller investors, who often need to see their investment grow considerably before returning a profit. In addition, receiving the correct advice is difficult because it tends to require an investor meeting with an IFA in person to receive support, which is both expensive and time-consuming.

A recent survey showed that 46% of Britons would love to invest in stocks and shares but don’t know how. Even when an investor is knowledgeable, traditional channels are out-dated and difficult to use. In the USA companies such as Robinhood and Loyal3 are addressing this issue by providing intuitive platforms with zero commissions. They have shown they can still be successful by providing additional services and investing client money held on account in overnight markets.

Freetrade has recently been formed in the UK, and has already designed a mobile app that’s designed to make stock market investing more accessible for European investors, by having a user-friendly interface that makes it easy to search for companies that are trading on an exchange, removes restrictions around portfolio sizes and operates on a zero-commission model so low value traders aren’t excluded.  Freetrade will also be introducing fractional share dealing to the UK market; for example, if Apple is trading at $100, users will be able to invest $25 in shares. Fractional share dealing is available in the US through the likes of DriveWealth and Stash Invest, but Freetrade will be bringing this proven model to Europe for the first time.

Freetrade’s most innovative feature is a world-first – their app will offer access to a network of IFAs using a model similar to Uber and Airbnb, where independent advisors can provide advice directly through the app, reducing the impact of one of the major barriers to entry in stock market investing. This will provide people new to trading with access to the same professional advice as more seasoned investors, allowing them to make informed decisions over the shares they purchase – a crucial element missing from many of the US-based solutions.

Freetrade has been accepted onto the FCA Innovation Hub program and is in the process of applying to the FCA for regulatory permission to be an execution-only broker. The company is on course to start officially trading within the £288bn UK share dealing market by early 2017.

 

To aid their development, Freetrade is running an equity crowdfunding campaign on market-leading platform, Crowdcube, where they have raised 40% of their £100,000 target within just four days of being live to the public. Their plan upon launch is to target the 14.8 million Millenials in the UK.

Freetrade is currently accepting early registrations via their website – www.freetrade.io

Who’s behind it?

Adam Dodds, Chartered Accountant, CFA Charterholder, formerly of KPMG. Adam is a former auditor and M&A professional with a focus on banking, broker-dealer and fintech sectors.

Davide Fioranelli, Masters (Finance), spent five years with KPMG in Italy and the UK. Davide met Adam in the M&A team at KPMG, where he had a focus on the banking and fintech sectors.

Andre Mohamed joined the Freetrade team from leading capital markets technology consultancy, Lab49. With 15 years’ software engineering experience, Andre has a B.Sc in Computer Science from UCL.

Quote from Adam Dodds

“We came across the model they have in the States, and not being satisfied with simply bringing the same concept to the UK, we looked at how we could raise the bar. These US companies have shown zero commission trading models can work, but they were only solving half the problem. Professional advice is an intrinsic part of making a good investment decision, and no one, as far as we can see, is offering low-cost, flexible access to IFAs and other advisors. We are creating a world-first – an Uber or Airbnb model for IFAs, alongside a zero commission trading model. With all these elements combined, we’re unlocking the stock market for millions of people, and creating an investment platform that will massively disrupt a huge market.”

 

Related News

Reuters Events Discuss the Resilience of the Energy Market Through Volatility

Reuters Events will be hosting a free online webinar series focused on commodity trading and commodity value chains.

The energy industry has never seen a year like it.... Read more »

Newfound launches virtual fintech trade mission to stimulate economic growth in UK and Australia

Global expansion specialists Newfound today announced the first ever virtual fintech trade mission between the UK and... Read more »

IPC’s Connexus Cloud ecosystem continues expansion with linkage to London Metal Exchange

IPC, a leading global provider of secure, compliant communications and networking solutions for the global financial markets community, announced today its... Read more »

Cloud9 Chooses OpenFin to Empower “Virtual Trading Desks”

Cloud9 Technologies ("Cloud9"), a leader in cloud-based communications, has partnered with OpenFin, the operating system (OS) of finance, to streamline the deployment of Cloud9... Read more »

QuantHouse to provide TSL machine learning capabilities as part of the QuantFactory cloud backtesting suite

QuantHouse, the global provider of end-to-end systematic trading solutions including... Read more »

AxeTrading and Mosaic Smart Data Collaborate to Unlock Bond Market Insights

AxeTrading, the fixed income trading software provider, and Mosaic Smart Data, the real-time capital markets data analytics company, today announced the... Read more »

Magazine
ALL
Free Newsletter Sign-up
+44 (0) 208 819 32 53 +44 (0) 173 261 71 47
Download Our Mobile App
Financial It Youtube channel