Freetrade Brings New Investment Products in the UK, Targets Millennials

Mobile-based stockbroker Freetrade on Tuesday, announced the launch of its flagship brokerage platform in the United Kingdom.

Dubbed Invest by Freetrade, the product suite is regulated by the UK’s Financial Conduct Authority and will offer the traders on the platform thousands of new stocks and Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading. An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading. Read this Term-traded funds (ETFs). The platform also secured the Financial Services Compensation Scheme certification for ensuring security.

Commenting on the development, Adam Dodds, founder and chief executive of Freetrade, said: “Exorbitant fees of traditional providers shouldn’t be the norm, so we have broken the mould for how Stock Brokers Stock Brokers A stock broker is a company, individual, or entity that is authorized to buy and sell stocks or other financial instruments. Brokers’ main function includes buying and selling orders on a trader’s behalf. Through innovation and a byproduct of us residing with the technology era, more and more traders are beginning to open brokerage accounts with online brokers.In the past, many brokers accrued money through charging a commission on every trade but as competition has strengthened and technology has advanced, many brokers nowadays offer commission-free trading. For brokers that don’t charge commissions, more often than not a broker generates money through accrued earned interest on uninvested cash dispersed throughout investor accounts. Generally, investment accounts possess a small sum of capital, in which the broker moves into a deposit account that begins earning interest, where the broker later keeps the accrued interest. In most cases, brokers are required to register with a regulatory or governing entity, such as the Financial Industry Regulatory Authority (FINRA), to provide financial services to traders. Held to high-standards, brokers seeking regulation must operate within the suitability rule standard of conduct while also enforcing a KYC (know your customer) policy to create a more transparent trading environment. In trading, brokers are generally categorized into two categories.Brokers that charge commission and execute a diverse range on a trader’s behalf are known as discount brokers. With discount brokers, trade recommendations or market insights aren’t given while most brokers operate via salary opposed to commission. Popular examples of discount brokers include Robinhood, Charles Schwab, and Interactive Brokers.Brokers that offer market research, investment advice, retirement planning along with an extensive selection of investment products are known as full-service brokers.The most prominent of these include Morgan Stanley, Cantor Fitzgerald, and Goldman Sachs. A stock broker is a company, individual, or entity that is authorized to buy and sell stocks or other financial instruments. Brokers’ main function includes buying and selling orders on a trader’s behalf. Through innovation and a byproduct of us residing with the technology era, more and more traders are beginning to open brokerage accounts with online brokers.In the past, many brokers accrued money through charging a commission on every trade but as competition has strengthened and technology has advanced, many brokers nowadays offer commission-free trading. For brokers that don’t charge commissions, more often than not a broker generates money through accrued earned interest on uninvested cash dispersed throughout investor accounts. Generally, investment accounts possess a small sum of capital, in which the broker moves into a deposit account that begins earning interest, where the broker later keeps the accrued interest. In most cases, brokers are required to register with a regulatory or governing entity, such as the Financial Industry Regulatory Authority (FINRA), to provide financial services to traders. Held to high-standards, brokers seeking regulation must operate within the suitability rule standard of conduct while also enforcing a KYC (know your customer) policy to create a more transparent trading environment. In trading, brokers are generally categorized into two categories.Brokers that charge commission and execute a diverse range on a trader’s behalf are known as discount brokers. With discount brokers, trade recommendations or market insights aren’t given while most brokers operate via salary opposed to commission. Popular examples of discount brokers include Robinhood, Charles Schwab, and Interactive Brokers.Brokers that offer market research, investment advice, retirement planning along with an extensive selection of investment products are known as full-service brokers.The most prominent of these include Morgan Stanley, Cantor Fitzgerald, and Goldman Sachs. Read this Term operate by taking brokering in-house, creating our own software platform, and reducing costs tremendously. This benefit is passed directly to Freetrade users in the form of zero-commission trading on over 600 stocks and ETFs. This makes investing in the markets more accessible than ever before.”

Zero-fee trading

Freetrade’s primary clients are millenials due to the platform's strategy of marketing its product without any trading fees. The company is now targeting the same group in Europe.

However, the platform has to face tough competition from platforms like Robinhood, which also opened a branch in the UK.

“For most of Freetrade’s 70,000+ customers, it’s the first investment service they’ve used, and we’re now seeing many investors move over to us from legacy stockbrokers too, with consumers wanting to find a fairer, more transparent place to invest their money,” Dodds added.

“Invest by Freetrade is the most modern brokerage platform in the world and we have all the ingredients to transform how financial services will look in the 2020s. I’m very much looking forward to seeing more people gain access to the stock market’s many opportunities in a fairer way.”