Freetrade is a relatively new mobile app to the UK investing scene. The company, Freetrade Ltd, was co-founded by Adam Dodds and Davide Fioranelli and was incorporated in September 2015. The app, however, was officially launched on iOS in 2018 and on Android in 2019.
Dodds previously worked at KPMG in corporate finance, specialising in mergers and acquisitions, as did Fioranelli. This meant the co-founders had already developed skills in seeking and managing investment. Their established network from their previous role was the perfect springboard, and so, Freetrade was born.
Freetrade gained significant traction from the get-go accumulating hundreds of thousands of investment funding using the popular crowdfunding platform Crowdcube. As of June 2020, Freetrade has managed to accumulate nearly £20m from the platform alone. But if it’s not investing in Freetrade you’re interested in, here are 5 reasons why you should at least download the app!
Reason 1: Intuitive UI Design & User Experience
The Freetrade app is designed with minimalism in mind. It is colourful and appealing to the eye, and offers a sleek interface that enables users effortlessly navigate throughout the simple app.
You can track your investments individually or your total investment from the Portfolio page. It shows peaks and troughs as you deposit and withdraw money, and displays the total amount gained or lost since you began investing.
The Discover page is updated weekly with the new stocks: ETFs, Stocks, etc. Here is where you can have a bit of fun by easily researching and analysing data. It’s no candle-stick chart, but it’s a start!
Then there’s the Insights page which conveniently breaks down your portfolio into the appropriate categories. The Activity page displays your buy and sell history. And finally, the Account page shows you how little money you have left to invest!
You can follow Freetrade on Twitter to stay up-to-date with the latest stocks, and even have your say as to what stocks they should add.
Reason 2: Built with the Layman in Mind
If it’s options and candle-sticks you’re looking for, then this app isn’t for you. Freetrade was built for the average investor. Don’t get me wrong, there will be many seasoned investors using the app too, but the app clearly appeals to the masses.
We’ve seen a significant number of new investors enter the market in 2020. This is likely due to the coronavirus. With everyone on lockdown, people are not going out and spending money anymore. With a build-up of excess cash, we need somewhere to put it. The savvy millennial will think about investing their money to make it go to work for them, which is exactly why Robinhood had a huge spike in user sign-ups recently.
I would imagine the same is happening in the UK. The fickle returns you can get from a bank’s interest rate today are an abomination. And that’s just one of the reasons why you should be investing your money elsewhere.
Sign up to Freetrade using this link and we can both get a free share worth up to £200.
Reason 3: Commission Free Investing
One beautiful thing about the Freetrade’s business model is that it is a freemium service. That means, you can invest in stocks COMPLETELY FREE!
So you might be wondering, how does Freetrade make money. Well to answer your concern, the company’s revenue streams currently include interest earned from banks on customers’ cash, a fee of 0.45% of the Base Foreign Exchange rate on each US order placed, and a £3.00 per month Individual Savings Account (if you sign up), which leads me to the next reason you should download the app.
Reason 4: Easily Set Up an Investment Individual Savings Account (ISA)
Have you ever considered setting up an ISA? A stocks & shares ISA gives you the opportunity to avoid paying tax on any income or capital gains you earn from your investments. Nobody likes to pay tax, and we investors are certainly no different.
Freetrade gives you the ability to set up an ISA in a few clicks for just £3/month. Once set up, you can put up to £20,000 in stocks & shares each tax year. The process is extremely simple and cost-effective.
Reason 5: One Free Share Each Time Someone Uses Your Referral Link
After signing up, you can refer a friend using your in-app link and once they have signed up and deposited some money, you’ll both get 1 share each worth up to £200. Now if that’s not a good incentive, I don’t know what is!