Free Trade

Inspiration

FreeTrade is a recent start up share trading company for the modern world. It is app based with no fees as its USP. It is growing fast having hit 500k users at the end of January 2021. Features that attracted me to use this for my stock market investments:

  • No fees/commission for each trade.
  • App based user interface
  • London stock market
  • New York stock market
  • ISA for £3 per month stand alone or as part of ‘Plus’ £10 per month
  • SIPP available for ‘Plus’ users £10 per month
  • Ever increasing range of stocks and ETFs
  • Fractional shares for US market
  • Friendly community chat

The blurb from the platform

“Freetrade is an award-winning, commission-free investing app.

Our mission is to get everyone investing by making it simple and commission-free, with a stockbroker you can trust.

We invest our most important currency, our time, every day.

We also invest our money every day. Almost everything in modern life is made or provided by companies. And, companies are the primary way wealth is created in the world.

Our goal is to give access to everyone to benefit from that wealth creation. We believe we can make an impact on rising inequality and we can make the world a more equitable place by giving access to markets and educational information.”


How it works

First step is to download the App. Using the link will earn you and me a free share worth up to £200

Once you have registered on the app, fund your account and you are good to go. it really is that simple.

The app is very intuitive to use. Find the stock you are interested in, and press buy.


Where to find out more…

There is lots of information on the website

https://freetrade.io

Another great place to spend your time is the FreeTrade community. it’s a very friendly discussion forum. There are threads about almost all the stocks, sectors, general investment advice. It’s a great place to ask newbie questions

https://community.freetrade.io


My journey with FreeTrade

I signed up with a friends link back in January 2020 and made my first purchases. I’ve been investing £500 per month since then, with the exception of April, May and June 2020 where I invested a bit more due to the market crash.

My full intention was to follow the FIRE movement recommendations and invest for dividends and concentrate on exchange traded funds (ETF’s). Over time I would end up with a regular income from the dividends. Then Covid happened and the world changed…

  • Whole sectors have very little future
  • Wholesale halting in dividends
  • Acceleration in transition to a tech based future
  • Stimulus packages and lockdown, injecting massive new funds into the sock market
  • Pivot point for transitioning from carbon to renewable based energy sector.

For me this represented an opportunity for growth investing at the expense of dividends. I concentrated on the sectors that seemed to be doing well due to covid, ‘riding the wave’. I invested in green energy companies, especially those related to Electric Vehicles. I also concentrated on tech. There seemed to be some explosive growth in the mining sector as well so some money went in this direction as well.

All in all a good strategy with my portfolio creating a Money Weighted Rate of Return of over 100% by January 2021.

By March 2021 the market was a little overheated and there was a correction. I used this time to cash in my General Investment account shares and transition to an ISA account. Part of my FIRE goal includes making my income as tax free as possible. In March I topped up my ISA account until I had maxed out my ISA allowance for 2020-2021. In April I transferred the remainder of my General account money into the ISA account.

That first year of investing for growth with individual stocks was good fun, but took a lot of time and effort. That didn’t really fit with my “Lazy way 2 FIRE” ethos. My investments in my ISA account are very different. The new portfolio is based on my top dividend performers, along with well performing investment trusts and ETFs with only a small number of pure play growth stocks.