The idea of ‘wisdom of the crowds’ has always intrigued me and I’ve parted with a bit of money through crowdfunding, including charity and property crowdfunding, which I posted about here.
My most recent bit of crowdfunding ‘investing’ was when I bought some shares in BrewDog – less to make money, more because I like the product!
Another Crowdfunding Investment
Some of you may recall that when I set my goals in January, I mentioned that I was going to do some ‘trading’ and was on a waiting list for a new app, although by ‘trading’, what I really probably meant was not ‘holding’ long-term.
Five months later, this still hasn’t materialised and while I was waiting, I came across the chance to invest in another app, namely Freetrade via CrowdCube.
The company was looking for an investment of £500,000 – this target was reached in just 12 minutes!
After 28 hours, funding was capped at £3.1m and it became Crowdcube’s most overfunded equity offering ever.
What’s in the Box?
Freetrade has been touted as the UK equivalent of the US investment app Robinhood, which allows you to trade stocks for 0% commission.
Freetrade’s interesting tag line is: “Invest for free, forever.”
Bold words indeed – perhaps the likes of Hargreaves Lansdown aren’t quite quaking in their expensive shoes but I’m sure they will follow the progress of this app with interest.
Its pricing plan is like many of the ‘free’ apps you can download – you get a basic service for free but if you want some bells and whistles, you pay for a premium account – an ‘Alpha’ account in this case.
It’s very competitive though – check out the price list here and it looks like you can buy ‘fractional shares’- not sure how dividends would work in this case though.
There’s been mention that crypto currencies might be available on the app at a later date but I’m not tempted as that’s a gamble too far, even for a gambler like me!
Also, it’ll be interesting to see the app in amongst Monevator’s broker comparison list.
The app is being slowly onboarded (there’s a big waiting list) – my time in the queue will probably be even longer as I have to wait for the Android version of the app but I’ll probably do a proper review once I’ve got my mitts on it and tested it out.
I could be tempted to buy bits of the FAANG stocks (Facebook, Amazon, Apple, Netflix, Google) – why? Just cos it’ll sound ace to my friends – they needn’t know I’ve just got a fraction of a share, haha! Naah, most likely I’ll stick to stocks closer to home.
As you can already gather, I’m likely to just be using ‘fun money’ (ie matched betting profits) for this – right now, I can’t envisage transferring one of my existing ISAs here but I’m excited about the possibility of saving on trading fees for my Dogs of the FTSE portfolio.
Anyway, there’s not a lot more I can say, except that there’s a nifty little Freetrade forum and community building already and I can’t wait to have a play on app!
Enjoy the bank holiday weekend!
[Disclaimer – I have no affiliation whatsoever with Freetrade and this is not a recommendation to download the app (although it is free). There are no referral links in this post, even though I do have a link but all it does is shove me up the waiting list – I think I can wait!]
PS – Everyone GDPR ready?
Here’s a comic strip which sums things up…