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Freetrade Hones In On Tax-Advantaged Accounts, Long-Term Investors: 'Better Returns'

Freetrade Hones In On Tax-Advantaged Accounts, Long-Term Investors: 'Better Returns'

Freetrade, a commission-free trading app for stocks and ETFs, has rolled out a new platform targeting long-term investors.

Freetrade’s co-founders, Viktor Nebehaj and Adam Dodds, spoke with Benzinga about the platform.

What Is Freetrade?

Freetrade is a fee-free fractional trading application that has gained popularity in Europe.

Dodds came up with the idea, incorporated the company and sought crowdfunding, at which point he met Nebehaj. Nebehaj joined the founding team after Freetrade pitched him for funding.

“When I met [Freetrade], I was really impressed with their knowledge about the brokerage space. Eventually, I felt strongly about applying and joined,” Nebehaj told Benzinga.

The two then led a full-stack approach to building a stock brokerage, launching after the U.K.’s Financial Conduct Authority authorized Freetrade to operate as a self-clearing brokerage.

The firm’s core offering includes:

  • U.S. and U.K. securities.
  • Zero commissions.
  • ISA, tax-efficient accounts.
  • Fractional share trading.
  • Free shares per sign-up and referral.

The Differentiator For Freetrade

The Freetrade application is a holistic solution for long-term investors, Dodds said.

“We’re a product for getting better investment returns; our customers are not necessarily traders, as much as buy and hold investors.” 

Freetrade places an emphasis on wealth creation through its easy-to-use tax advantaged accounts, he said.

“We’re building SIPPs, a pension plan. That’s the kind of direction we’re taking this product.”

In conjunction with fractional share trading, Freetrade’s product portfolio is aimed at providing new and small investors the ability to build wealth.

Next Steps For Freetrade

Freetrade's co-founders said it has an open line of communication with its more than 70,000 users.

“They suggest product features, we throw it up in the Trello board and tell them this is what we’re looking at in the next three to six months [or] six to 12 months," Dodds said.

Among the many projects in development, the following are planned for release in the next six months:

  • Customized order entries.
  • Fractional shares on international securities.
  • Security insights and analytics.
  • Screenshot courtesy of Freetrade.

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