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Screenshot of a breaking news alert e-mail from Q2 2017
Freetrade has announced today that it will be launching its 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.
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 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. Now, that’s a first!
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 £288 billion UK share dealing market by early 2017.