FREE TRADE is a no frills broker with Free Commissions. So you do not get any research or fancy charting platforms – you get a simple app, a catalog of available assets and free or £1 commissions!
I use Freetrade to build up my dividend positions similar to why I use Trading 212. It is a commission free broker (or cheap – £1) so you can add small positions as and when required.
The app is easy to use and there is a community forum which has some good conversations and sharing on. The community forum is also where people can request improvements and additions to the app as well as new stocks and ETF’s to be added to the catalog.
You have two options for the commissions with Freetrade. The first one is to purchase now at market price and that will cost you £1 per trade. The second option you have is for the commission free trade – but for this you have to put your order in before 15:00 and you have to accept the market price when they process your order shortly after 15:00.
As already mentioned, I use Freetrade mainly to top up my dividend investments. The commission free trades allow you to execute small orders to slowly build up your positions. For example if something is happening within the markets that causes a the price to drop for a stock I currently hold, I can take advantage and top up or even average down. Obviously you still need to be confident in the future of your position! – don’t keep buying a stock if it’s price is dropping due to it being a bad or declining business!
I think Freetrade is an excellent app and I believe it has provided the opportunity for people to invest that would usually not get involved. Due to it being simple to use, the commissions being free (or cheap) and the community being fun and relaxed, it has encourage a new wave of investors. You do not need a lot of money to start investing anymore! You can now start with something as little as £10 and starting building slowly each month!
Just make sure you do your own due diligence when you are buying your stocks!
See the site and the forum below for more details.