Editing Freetrade
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In addition, while investing can be a powerful tool for wealth creation, it's not the only strategy. Other important aspects of personal finance, such as maintaining a budget, managing debt, and building an emergency fund, also play critical roles in financial health.</ref>, and Freetrade is a company that's on a mission to get everyone investing.<ref name=":8" /> | In addition, while investing can be a powerful tool for wealth creation, it's not the only strategy. Other important aspects of personal finance, such as maintaining a budget, managing debt, and building an emergency fund, also play critical roles in financial health.</ref>, and Freetrade is a company that's on a mission to get everyone investing.<ref name=":8" /> | ||
The main offering of the company is an app, also called Freetrade, that enables people to buy and sell certain investments without paying any trading commissions.<ref>https://freetrade.io/compare-plans</ref> Currently, with peers such as Trading 212 providing access to more investments (12k vs. 6k), and at a lower cost in terms of platform fees (zero vs. £5.99 per month for access to 6k investments) and foreign exchange conversion fees (0.15% vs. 0.59% for the £5.99 per month plan), there doesn't seem to be | The main offering of the company is an app, also called Freetrade, that enables people to buy and sell certain investments without paying any trading commissions.<ref>https://freetrade.io/compare-plans</ref> Currently, with peers such as Trading 212 providing access to more investments (12k vs. 6k), and at a lower cost in terms of platform fees (zero vs. £5.99 per month for access to 6k investments) and foreign exchange conversion fees (0.15% vs. 0.59% for the £5.99 per month plan), there doesn't seem to be an obvious material uniqueness of the Freetrade offering.<ref>Freetrade and Trading 212 are similar in that they both offer commission free trading. Trading 212 is better than Freetrade in terms of the number of investments offered (12,000 vs. 6,000), FX fees (0.15% vs. 0.39%) and platform usage fee [Zero vs. £5.99 per month to access the 6,000 investments (note, to access 1,500 investments only, there is no fee)].</ref> | ||
Assuming that Freetrade increases its share of the global brokerage market by 1000x to 1% (from less than 0.0010%<ref>The annual global brokerage market right now (2023) is estimated at $1.30 trillion, and Freetrade generated around £12.68 million ($15.93 million) in revenue in its most recent full-year results</ref>) and other assumptions, the expected return of an investment in the company over the next five years is 202%, which equates to an annual return of 25%. In other words, an £1,000 investment in the company is expected to return £3,016 in five years time. | Assuming that Freetrade increases its share of the global brokerage market by 1000x to 1% (from less than 0.0010%<ref>The annual global brokerage market right now (2023) is estimated at $1.30 trillion, and Freetrade generated around £12.68 million ($15.93 million) in revenue in its most recent full-year results</ref>) and other assumptions, the expected return of an investment in the company over the next five years is 202%, which equates to an annual return of 25%. In other words, an £1,000 investment in the company is expected to return £3,016 in five years time. |