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Mar 15, 2017 · bdaily.co.uk
App-only stockbroker Freetrade has announced it has raised £1.1m in just 12 days on crowdfunding platform Crowdcube as it gears up for its full launch this year.
Operating on a zero-commission model, the app is aiming to democratise stock market investing by removing traditional barriers to entry such as minimum account balances and punitive per trade commission fees in what would be the first product of this type in the UK.
The likes of Robinhood and Loyal3 both operate similar models in the USA, but until now UK traders have had to stump up commissions in the region of £10 per trade from traditional stock broking services.
Freetrade plans to make its money by charging for premium services and bigger trades, including £1 commission per £1,000 invested as part of its premium share dealing account and associated charges for its self-invested personal pensions (SIPPs) or stocks and shares Individual Savings Accounts (ISAs).
Explaining the inspiration behind the app, Freetrade Co-Founder, Adam Dodds, said he stunned by how difficult it was for regular people to get access to stock trading in the UK.
He commented: "When I moved to London a few years ago I was astonished and shocked at how expensive and intimidating it was to become an investor.
"This is why Freetrade was created, to make investing in the stock market easy and affordable for everyone."