Thousands of Americans Are Signing Up to Trade Stocks for Free, free money to trade.

Free money to trade


When taxi drivers start offering stock-market tips, it’s time for the pros to get out of the market — at least that’s what wall street lore says.

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Thousands of Americans Are Signing Up to Trade Stocks for Free, free money to trade.


Thousands of Americans Are Signing Up to Trade Stocks for Free, free money to trade.


Thousands of Americans Are Signing Up to Trade Stocks for Free, free money to trade.

Indeed, on nov. 15, the dow closed above 28,000 for the first time ever. While stocks have slipped back slightly since then, the market remains up about 19% year to date. But while the idea of trading stocks can seem more enticing and exciting when the market soars, the object is ultimately to buy low and sell high.


Thousands of americans are signing up to trade stocks for free. Here's what to do instead


Thousands of Americans Are Signing Up to Trade Stocks for Free, free money to trade.


When taxi drivers start offering stock-market tips, it’s time for the pros to get out of the market — at least that’s what wall street lore says.


Maybe charles schwab’s assumes main street investors aren’t familiar with that old adage.


In october, the discount brokerage announced a new policy of commission-free stock, ETF and option-trades. Since then, schwab has been running an ad that shows a middle-aged taxi driver turning around in his cab to address a silver-haired passenger, “you’re a broker. What do you charge for online equity trades?” as signs for $0 at schwab flash by.


As it happens, trade-for-free deals, originally pioneered by upstart apps like robinhood, have become something of an investing craze. Following schwab’s october announcement, rivals E*trade, fidelity and ameritrade quickly followed suit. And investors appear to be game. Schwab, which agreed to purchase ameritrade for $26 billion monday, recently said it signed up 142,000 new customers in october, up 30% from the number it signed up in september.


So are free trades worth it for you?


Maybe. But as with most investing crazes, you should be cautious.


When it comes to investing, costs do matter. And anything that promises to lower investors’ costs is worth applauding. But your investment horizon should also be long-term. Making trades free seems to run counter to that, encouraging people to trade more.


(for what it’s worth, schwab doesn’t agree. A spokesman says schwab doesn’t expect trading volume to spike as a result of eliminating commissions. He also defended schwab’s ad, arguing a taxi driver chatting about brokerage commissions wasn’t the same as one chatting about what stocks to buy.)


Before you jump in to free trades here are some things to consider:


Don’t forget about mutual funds


Skipping fees in order to put your money to work sounds like a no-brainer. And it in a way it is. But the truth is, investors have already been able to do this for years.


While brokerages have recently been eliminating commissions they charge to trade stocks, exchange-traded funds and options, investors have always been able to buy shares of traditional mutual funds commission-free, either at brokerages like schwab or TD ameritrade (look for the “no load” funds section) or directly from fund companies themselves, on their websites.


The drawback? Well you obviously have to be interested in holding a broad swath of the market— but for most individual investors that’s a smart move anyway. Also, unlike exchange-traded funds, which trade like stocks, you can only buy or sell mutual funds only once a day (at the afternoon price that day), and they may limit your ability to repeatedly shift money in and out.


But again, for most individual investors with a long-term time horizon, these restrictions might be seen as healthy guardrails, rather than bugs.


Watch your cash


Brokerages may have made stock trading free. But they aren’t becoming charities. So, how do they make money?


One answer, the wall street journal recently pointed out, is your cash. Most stock market investors keep some cash in their accounts — temporarily after selling a stock or earning a dividend that isn’t reinvested, or more longer-term as an emergency cushion against market swings.


Even though this money isn’t “invested,” brokerages pay you interest on your balance. But they don’t pay you nearly as much as a money-market mutual fund or as savings account would. Schwab’s website says uninvested cash in brokergage accounts (as well as retirement accounts like iras) earns 0.06% to 0.3% annual interest. At TD ameritrade they range from 0.01% to 0.3%, depending on your type of account and how much money you have.


By contrast, vanguard prime money market fund yields 1.75%. An online savings account at SFGI direct, money’s pick for best banks 2019-2020 in that category, yields 2.27%.


Buy low and sell high


Brokerages are lowering trading commissions mainly to better compete with online start-ups. But for their part, investors’ desire to trade stocks is probably tied to something else: the stock market, which has been climbing steadily now for more than a decade, and has been hovering near all-time highs.


Indeed, on nov. 15, the dow closed above 28,000 for the first time ever. While stocks have slipped back slightly since then, the market remains up about 19% year to date. But while the idea of trading stocks can seem more enticing and exciting when the market soars, the object is ultimately to buy low and sell high.


Right now, stocks are trading at roughly 30 times the 10-year average for company’s annual profits — compared to a long-time historical average of just 17 times. In fact, stocks haven’t been this expensive since the late-’90s internet bubble. That was also the last time it became fashionable for individual investors to try to score big by trading individual stocks, in what was then called “day-trading.”


Needless to say, it ended badly for many small investors, and for a while they appeared to have learned a lesson. Don’t make the same mistake they made.



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How asia's RCEP deal has brought the return of free trade


While britain and the EU struggle to come to terms, 15 asia-pacific countries quietly signed the biggest free-trade deal in history. That’s a welcome development, says simon wilson


Thousands of Americans Are Signing Up to Trade Stocks for Free, free money to trade.


© NICOLAS ASFOURI/AFP via getty images


What’s happened?


In the middle of last month, as the UK and EU were struggling to nail down the world’s first free-trade agreement explicitly aimed at putting up fresh barriers to trade rather than tearing them down, 15 asia-pacific economies quietly signed the world’s biggest free-trade agreement. The regional comprehensive economic partnership (RCEP) has been signed by china, japan, south korea, australia and new zealand – along with ten southeast asian countries, all members of the existing asean trade bloc. The agreement covers almost a third of the world’s population and about 30% of global GDP – and is the first ever free-trade deal between china, japan and south korea, the biggest, second-biggest and fourth-biggest asian economies. Of the major asian economies, only india has opted out, over concerns over cheap chinese imports. But as one of the original negotiating partners, it has an option to join at a later date.


When does the deal take effect?


It’s likely to be years rather than months, and some of its provisions may not take effect for up to 20 years. After eight years of tortuous on-off negotiations, the deal was concluded following a four-day international summit in the vietnamese capital, hanoi, in mid-november. But it must now be ratified by each country, and will not take effect until at least six of the ten asean nations, and three of the five non-asean nations, have done so. The key aim of the agreement is the progressive lowering of tariffs to allow more free movement of goods and encourage investment.


How is this different from the TPP?


RCEP represents a bigger bloc, but a less comprehensive deal. Since president trump withdrew the US from the trans-pacific partnership (TPP) trade deal in 2017, it has been renamed the comprehensive and progressive agreement for trans-pacific partnership (CPTPP) and was ratified by its 11 remaining members in 2018-2019. The RCEP nations’ overall market size is nearly five times greater than that of the CPTPP, and the trade between them twice as big. Seven countries (notably japan and australia) are in both blocs. But crucially, the new bloc includes china and south korea (and six southeast asian economies that are not CPTPP signatories). It does not include the americas members of the CPTPP (canada, mexico, peru and chile). However, compared with CPTPP, the RCEP is less comprehensive – and with much less emphasis on labour rights, environmental and intellectual property protections and dispute resolution mechanisms.


How important is the agreement?


RCEP was conceived as a grand “tidying-up exercise”, says the economist, bringing together various smaller trade agreements in place between the asean nations and australia, china, japan, new zealand and south korea. As such, only a limited amount of asian trade is affected. Indeed, “of the $2.3trn in goods flowing between signatories in 2019, 83% passed between those that already had a trade deal”. The biggest benefits, in terms of trade liberalisation, will probably come of RCEP’s rules of origin – that is, the principles setting out how much regional content a product must have for it to enjoy lower tariffs. Currently, exports from an asean state could face three different sets of rules when exported to china, south korea or japan. Now such companies will only need to comply with one and the rules are relatively liberal: many products will need just 40% of their value to be added within the region in order to take advantage of lower tariffs”.


Who gains the most?


The RCEP is not “china-led”, in the sense that it was the asean nations that conceived the pact and have driven it forward. But it definitely serves china’s interests. The old TPP included provisions that reined in state-owned firms and included rules on labour and environmental standards. RCEP includes none of those constraints and is likely to strengthen china-centric supply chains. But a study by peter petri of the peterson institute and michael plummer of johns hopkins university estimates that japan and south korea will gain the most, with real incomes 1% higher by 2030 than they would have otherwise been.


So a bit of damp squib?


It has certainly been over hyped, says salvatore babones in foreign policy. The RCEP is a “straight tariff-reduction agreement at a time when base tariffs are already low, and countries don’t hesitate to impose punitive tariffs whenever it suits their foreign-policy objectives”. Moreover, it avoids hard issues such as state subsidies, intellectual property theft and investor-state disputes. Yet it remains the biggest free-trade deal in history, says petri and plummer for the brookings think-tank. Together, CPTPP and RCEP are the only major multilateral free-trade agreements signed in the trump era. And as now configured (ie, without the US) both of them “forcefully stimulate intra-east asian integration around china and japan”. RCEP will “help china strengthen its relations with neighbours”, and accelerate northeast asian economic integration.


What should america do?


In terms of pushing back against china, and reasserting US leadership on trade, the “obvious move”, says the FT, would be for the biden administration to take the US into the CPTPP. Alas, while “such a move would make sense in diplomatic and economic terms”, it is probably “politically impossible in the current US climate”. There is an interesting geostrategic dilemma for india, too, with its goal of emerging as this century’s second asian superpower. The modi government has stood aside from RCEP, but india “must take care it does not relapse into the defensive, inward-looking attitude that has served the country so badly in the past”. And for the western world as a whole, RCEP presents a salutary reminder. Whatever the prevailing mood of scepticism towards economic liberalisation, “free trade is the best route to greater prosperity”.



Freetrade makes it easier to lose your money on the stock market


Thousands of Americans Are Signing Up to Trade Stocks for Free, free money to trade.


Gordon gecko. The wolf of wall street. Christian bale’s portrayal of michael burry in the big short. These characters embody the public idea of ruthless finance types who will use every trick in the book – including cheating pensioners out of their money – to make their own millions.


To that roster of characters I’d like to add me, conrad quilty-harper, blogger, digital editor and the proud owner of £636.36 worth of stocks, commodities and bonds. I’m not going to make millions with my tiny pot of money, but to own those shares at least I didn’t have to move to wall street, don a double-breasted suit or set up an ISDA master agreement*: I simply downloaded an app on my phone.


This is a review of freetrade.Io, a new app, based in london, which allows its users to access a selection of shares available to buy in the UK and abroad. With a few touches and a thumb press, you can buy and sell shares, and have a very good reason to reinstall the ios stocks app.


Of course it’s always been relatively easy to buy shares if you really wanted to. Moneysavingexpert has a brilliant list of some affordable options. The difference with freetrade is that, as the name suggests, it’s free to trade.


When the app launched, free trades used to be limited to 4PM every day, and you had to pay £1 per trade if you want to do it “instantly.” they’ve since made instant trading free. That compares remarkably favourably with existing competitors like AJ bell (from £1.50 a trade), interactive investor (£7.99), X-O (£5.95) and hargreaves lansdown (£5.95, but you have to make more than 20 trades in one month). Some of these more established companies have reduced their prices since freetrade launched, but that also might be to do with commission-free trading options from revolut and etoro, and low fee options trading apps like BUX and degiro.


What none of those more expensive or complicated options offer is a process as seamless as freetrade. If you have online banking already, to gain access it’s only slightly more complicated than signing up for netflix. Put in your details, your national insurance number, transfer some money to a bank account, and within a few days you’re able to buy shares.


I’ll use this animated gif to show you how many touches it takes to sell my £13 worth of vodafone shares.


Thousands of Americans Are Signing Up to Trade Stocks for Free, free money to trade.


The app still isn’t perfect, nearly two years since its launch. It does a lot of those annoying fintech things like not put an axis on its charts (WHY?!) and uses language that developers think are cute but actually make you question whether you should give them your money at all (e.G. BT’s listing in the app is described as “slow internet”). On the other hand, when I encountered a bug they fixed it within a day and sent me a chat message within the app.


I signed up to freetrade simply to play around with the app, but as the app has developed and the company continues to add new shares (the roadmap is quite comprehensive) it has started to replace my other investment platforms. I’ve even invested in the app itself via one of its crowdcube funding rounds.


One final thing: freetrade made me realise how poor most of the news and information is there about the stock market for retail investors. You can use the ios stocks app, for instance, but that often has no recent news about relevant companies. A better source is the FT’s markets section, but again their coverage isn’t universal. Surely there’s an opportunity there…


More information about freetrade and investing apps in the UK


Can I use robinhood in the UK?


Not at the moment. Robinhood, a similar app which launched in the US in 2013 and also offers “commission-free” trading, has “indefinitely postponed” its UK launch. The company announced in august that it had regulatory approval to operate as a broker in the UK and it planned to allow UK customers to buy and sell shares from 2020.


What is freetrade app?


Freetrade is a stock and shares investment smartphone app which allows you to trade for free. The company is still an early stage start-up, and has raised money several times using crowdfunding platform crowdcube. More than 200,000 people have accounts with freetrade, and it’s been operating for nearly two years.


How can I trade for free?


It’s possible to trade “for free” using freetrade, a mobile app which lets you invest in a limited selection of stocks, shares and exchange traded funds (etfs).


How can I get freetrade?


Sign up to freetrade with my referral code link and if you’re a new customer and put at least £1 into your account, you’ll get a free share. Here’s some more information about the offer.


Further reading if you’re interested in finance


(this blog was originally published in december 2018. *A plot point in the big short.)



UK and singapore sign free trade deal


The UK has signed a free trade deal with singapore, international trade secretary liz truss said.


Ms truss said in a statement on twitter that the pact will cover trade worth £17.6 billion.


Alongside a photograph of herself with singapore’s trade minister chan chun sing, ms truss said it was the second biggest such agreement britain has signed in the asia-pacific region.


It comes as UK and EU negotiators begin a final push to salvage chances of a post-brexit trade deal after downing street warned that the gaps between the two sides remain “very large”.


Prime minister boris johnson and european commission president ursula von der leyen held crunch talks over dinner in brussels on wednesday aimed at breaking the deadlock, yet key differences prevail.


Today I signed a deal with singapore covering £17.6bn of trade – the 2nd biggest agreement we’ve signed in #asiapacific ��������


✅it secures certainty for biz✅means deeper future ties in digital & services trade✅ is further proof we can succeed as an independent trading nation pic.Twitter.Com/6pmlqb7v9b


Ms truss said the pact with singapore “secures certainty” for business, will mean “deeper future ties in digital and services trade” and is “further proof we can succeed as an independent trading nation”.


It follows the UK and canada reaching a deal last month to continue trading under the same terms as the current european union agreement after the brexit transition period ends.


The singapore deal largely mirrors the one the city-state has with the EU, effectively allowing trade to continue as before after january 1.


Alongside the continuity deal with singapore, the two countries also intend to launch negotiations on a digital economy agreement.


Ms truss is also expected to sign a rollover deal with vietnam to ensure trade continues on the same terms after january 1.


She said: “both these agreements are vital for the UK’s future as an independent trading nation.


“not only do they lock in billions of pounds worth of trade, they also pave the way for new digital partnerships and joining the trans-pacific partnership.


“this will play to the UK’s strengths, as we become a hub for tech and digital trade with influence far beyond our shores, defining our role in the world for decades to come.”



Building an investment portfolio with etfs just got even cheaper. Here's how to do it


Thousands of Americans Are Signing Up to Trade Stocks for Free, free money to trade.


As exchange-traded funds gain more and more fans, brokerage firms are making it cheaper and easier for investors to use them as the main building blocks of a retirement portfolio. Just beware of the potential pitfalls.


Earlier this month discount brokerage charles schwab doubled the number of exchange-traded funds that could be traded for free on its online platform and rival fidelity investments immediately responded with a similar offer. As a result, investors can now buy and sell thousands of etfs without paying regular commissions.


Etfs, which after years of explosive growth hold more than $3 trillion, are mutual funds that trade throughout the day like a stock. Most etfs are index funds, meaning they track market benchmarks and boast relatively low investment fees. While there are plenty of similarities between etfs and traditional index mutual funds, etfs do offer some advantages, like de minimis investment minimums (in theory you can but just one share) and certain tax advantages when it comes to capital gains.


Low-cost etfs can be like a “swiss army knife” for investors, says ben johnson, director of passive funds research with morningstar. “they can do a lot of different jobs for a lot of different people.”


But is building a portfolio with etfs the right approach for you?


How the offers work


Schwab doubled the the number of etfs available to trade for clients commission free to more than 500 staring march 1, and fidelity essentially matched that, with 500 made available to trade for free beginning on feb. 28. Vanguard already offers more than 1,000 etfs free of commission.


Fidelity had formerly offered commission-free trades for a large suite of blackrock’s ishares and its own etfs. Fidelity said it was adding “smart beta” and “active” etfs from a range of providers to the free-to-trade bucket. Schwab added funds from a number of providers to existing invesco, state street global SPDR and wisdomtree offerings.


Among other brokerage platforms, etrade offers 250 free-to-trade ETFS and TD ameritrade offers more than 300. Clients of bank of america’s brokerage platform merrill edge with at least $50,000 in their accounts get 30 free stock and ETF trades a month.


Typically it costs $4.95 to $6.95 a trade on major platforms. While that may not sound like much, fees can pile up if, say, you’re someone who plans to sock away a few hundred dollars every month, or who regularly rebalances to make sure market swings don’t throw your chosen blend of stock and bond investments out of whack.


By contrast thousands of traditional mutual funds have long been “no load,” or free to trade, although many place restrictions on how many trades shareholders can make in a given time period.


Hidden costs


If investors are not careful, however, there is a danger of being penny wise and pound foolish with etfs.


While fidelity’s and schwab’s ETF offers look attractive, the firms still plant to make money. Fund industry analysts say these deals are loss leaders to get customers to spend money on other products and services. That could mean enticing you to purchase more expensive actively managed funds; cash products, like sweep accounts that may offer sub-optimal interest rates; or add-on services for individualized advice.


Investors should also educate themselves on the pitfalls of ETF pricing, andrew craswell, senior vice president at brown brothers harriman who works on ETF development for the private bank’s european operations. With a traditional mutual fund, investors are guaranteed a prices that matches “net asset value,” essentially the value of the fund’s underlying stock holdings, as of 4 p.M. On the day of the order.


While etfs almost always trade at market prices that closely match their N.A.V.S, there is no such guarantee. In some instances, like the “mini flash crash” of 2015, etfs have temporarily diverged sharply from their theoretical values. Craswell recommends investors use “limit orders,” which specify the price you are willing to accept for a given trade, to avoid the nasty surprises that can happen when orders at market price are mistimed.


Do you really need hundreds to choose from?


Oliver pursche, chief market strategist at broker-dealer and money manager bruderman brothers says investors should be wary of etfs that overthink the market.


While new offers mean investors can now trade many more niche and specialty funds for free, these tend to be far more expensive plain vanilla offerings. For instance, starting march 1, schwab investors will enjoy free trades of the the global X S&P 500 covered call ETF, an expense ratio of 0.65%, and the wisdomtree U.S. Multifactor fund, with an expense ratio of 0.28%, among many others.


But investors pay handsomely for these niche strategies. The schwab broad market ETF, also free to trade, costs just 0.03%.


When it comes to “smart beta,” “active” or “multifactor” funds, investors should ask themselves: “do you know what impact each of those factors have on the stock selection?”


“I believe in keeping them very simple and therefore low cost,” said mr. Pursche.



Thousands of americans are signing up to trade stocks for free. Here's what to do instead


Thousands of Americans Are Signing Up to Trade Stocks for Free, free money to trade.


When taxi drivers start offering stock-market tips, it’s time for the pros to get out of the market — at least that’s what wall street lore says.


Maybe charles schwab’s assumes main street investors aren’t familiar with that old adage.


In october, the discount brokerage announced a new policy of commission-free stock, ETF and option-trades. Since then, schwab has been running an ad that shows a middle-aged taxi driver turning around in his cab to address a silver-haired passenger, “you’re a broker. What do you charge for online equity trades?” as signs for $0 at schwab flash by.


As it happens, trade-for-free deals, originally pioneered by upstart apps like robinhood, have become something of an investing craze. Following schwab’s october announcement, rivals E*trade, fidelity and ameritrade quickly followed suit. And investors appear to be game. Schwab, which agreed to purchase ameritrade for $26 billion monday, recently said it signed up 142,000 new customers in october, up 30% from the number it signed up in september.


So are free trades worth it for you?


Maybe. But as with most investing crazes, you should be cautious.


When it comes to investing, costs do matter. And anything that promises to lower investors’ costs is worth applauding. But your investment horizon should also be long-term. Making trades free seems to run counter to that, encouraging people to trade more.


(for what it’s worth, schwab doesn’t agree. A spokesman says schwab doesn’t expect trading volume to spike as a result of eliminating commissions. He also defended schwab’s ad, arguing a taxi driver chatting about brokerage commissions wasn’t the same as one chatting about what stocks to buy.)


Before you jump in to free trades here are some things to consider:


Don’t forget about mutual funds


Skipping fees in order to put your money to work sounds like a no-brainer. And it in a way it is. But the truth is, investors have already been able to do this for years.


While brokerages have recently been eliminating commissions they charge to trade stocks, exchange-traded funds and options, investors have always been able to buy shares of traditional mutual funds commission-free, either at brokerages like schwab or TD ameritrade (look for the “no load” funds section) or directly from fund companies themselves, on their websites.


The drawback? Well you obviously have to be interested in holding a broad swath of the market— but for most individual investors that’s a smart move anyway. Also, unlike exchange-traded funds, which trade like stocks, you can only buy or sell mutual funds only once a day (at the afternoon price that day), and they may limit your ability to repeatedly shift money in and out.


But again, for most individual investors with a long-term time horizon, these restrictions might be seen as healthy guardrails, rather than bugs.


Watch your cash


Brokerages may have made stock trading free. But they aren’t becoming charities. So, how do they make money?


One answer, the wall street journal recently pointed out, is your cash. Most stock market investors keep some cash in their accounts — temporarily after selling a stock or earning a dividend that isn’t reinvested, or more longer-term as an emergency cushion against market swings.


Even though this money isn’t “invested,” brokerages pay you interest on your balance. But they don’t pay you nearly as much as a money-market mutual fund or as savings account would. Schwab’s website says uninvested cash in brokergage accounts (as well as retirement accounts like iras) earns 0.06% to 0.3% annual interest. At TD ameritrade they range from 0.01% to 0.3%, depending on your type of account and how much money you have.


By contrast, vanguard prime money market fund yields 1.75%. An online savings account at SFGI direct, money’s pick for best banks 2019-2020 in that category, yields 2.27%.


Buy low and sell high


Brokerages are lowering trading commissions mainly to better compete with online start-ups. But for their part, investors’ desire to trade stocks is probably tied to something else: the stock market, which has been climbing steadily now for more than a decade, and has been hovering near all-time highs.


Indeed, on nov. 15, the dow closed above 28,000 for the first time ever. While stocks have slipped back slightly since then, the market remains up about 19% year to date. But while the idea of trading stocks can seem more enticing and exciting when the market soars, the object is ultimately to buy low and sell high.


Right now, stocks are trading at roughly 30 times the 10-year average for company’s annual profits — compared to a long-time historical average of just 17 times. In fact, stocks haven’t been this expensive since the late-’90s internet bubble. That was also the last time it became fashionable for individual investors to try to score big by trading individual stocks, in what was then called “day-trading.”


Needless to say, it ended badly for many small investors, and for a while they appeared to have learned a lesson. Don’t make the same mistake they made.



Freetrade makes it easier to lose your money on the stock market


Thousands of Americans Are Signing Up to Trade Stocks for Free, free money to trade.


Gordon gecko. The wolf of wall street. Christian bale’s portrayal of michael burry in the big short. These characters embody the public idea of ruthless finance types who will use every trick in the book – including cheating pensioners out of their money – to make their own millions.


To that roster of characters I’d like to add me, conrad quilty-harper, blogger, digital editor and the proud owner of £636.36 worth of stocks, commodities and bonds. I’m not going to make millions with my tiny pot of money, but to own those shares at least I didn’t have to move to wall street, don a double-breasted suit or set up an ISDA master agreement*: I simply downloaded an app on my phone.


This is a review of freetrade.Io, a new app, based in london, which allows its users to access a selection of shares available to buy in the UK and abroad. With a few touches and a thumb press, you can buy and sell shares, and have a very good reason to reinstall the ios stocks app.


Of course it’s always been relatively easy to buy shares if you really wanted to. Moneysavingexpert has a brilliant list of some affordable options. The difference with freetrade is that, as the name suggests, it’s free to trade.


When the app launched, free trades used to be limited to 4PM every day, and you had to pay £1 per trade if you want to do it “instantly.” they’ve since made instant trading free. That compares remarkably favourably with existing competitors like AJ bell (from £1.50 a trade), interactive investor (£7.99), X-O (£5.95) and hargreaves lansdown (£5.95, but you have to make more than 20 trades in one month). Some of these more established companies have reduced their prices since freetrade launched, but that also might be to do with commission-free trading options from revolut and etoro, and low fee options trading apps like BUX and degiro.


What none of those more expensive or complicated options offer is a process as seamless as freetrade. If you have online banking already, to gain access it’s only slightly more complicated than signing up for netflix. Put in your details, your national insurance number, transfer some money to a bank account, and within a few days you’re able to buy shares.


I’ll use this animated gif to show you how many touches it takes to sell my £13 worth of vodafone shares.


Thousands of Americans Are Signing Up to Trade Stocks for Free, free money to trade.


The app still isn’t perfect, nearly two years since its launch. It does a lot of those annoying fintech things like not put an axis on its charts (WHY?!) and uses language that developers think are cute but actually make you question whether you should give them your money at all (e.G. BT’s listing in the app is described as “slow internet”). On the other hand, when I encountered a bug they fixed it within a day and sent me a chat message within the app.


I signed up to freetrade simply to play around with the app, but as the app has developed and the company continues to add new shares (the roadmap is quite comprehensive) it has started to replace my other investment platforms. I’ve even invested in the app itself via one of its crowdcube funding rounds.


One final thing: freetrade made me realise how poor most of the news and information is there about the stock market for retail investors. You can use the ios stocks app, for instance, but that often has no recent news about relevant companies. A better source is the FT’s markets section, but again their coverage isn’t universal. Surely there’s an opportunity there…


More information about freetrade and investing apps in the UK


Can I use robinhood in the UK?


Not at the moment. Robinhood, a similar app which launched in the US in 2013 and also offers “commission-free” trading, has “indefinitely postponed” its UK launch. The company announced in august that it had regulatory approval to operate as a broker in the UK and it planned to allow UK customers to buy and sell shares from 2020.


What is freetrade app?


Freetrade is a stock and shares investment smartphone app which allows you to trade for free. The company is still an early stage start-up, and has raised money several times using crowdfunding platform crowdcube. More than 200,000 people have accounts with freetrade, and it’s been operating for nearly two years.


How can I trade for free?


It’s possible to trade “for free” using freetrade, a mobile app which lets you invest in a limited selection of stocks, shares and exchange traded funds (etfs).


How can I get freetrade?


Sign up to freetrade with my referral code link and if you’re a new customer and put at least £1 into your account, you’ll get a free share. Here’s some more information about the offer.


Further reading if you’re interested in finance


(this blog was originally published in december 2018. *A plot point in the big short.)



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So, let's see, what we have: schwab, ameritrade and others will let you trade stocks for free. That doesn't mean you should. At free money to trade

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