Freetrade review – update and direction

Update…

My first post focused fairly heavily on Freetrade and my first investments on their platform. Since then a lot has changed; I have sold off all my holdings except for Sirius Minerals that I have pound cost averaged into during the heavy falls in performance in May and June. I now average around 15p per share with an overall investment of 1000 shares. This isn’t a huge amount when looking at my overall portfolio, but it is an incredibly volatile stock that will probably bounce around quite considerably until Sirius start bringing in their first lots of revenue in ~2021.

I also purchased my first shares in three companies I had wanted to purchase for a number of years, but was unable to as mentioned in my previous post, due to being priced out by your normal online brokerage accounts and their high fees. These shares are Unilever, Diageo and Disney. I originally wanted to invest in Disney when the first initial murmurs of the new Disney+ came out, but Freetrade had not been released back then. As a result, I began piling my money into various funds and trackers instead. Unfortunately I missed out on the +15% rise once details of the Disney+ platform were officially released, but this is a stock I see holding forever and maybe even passing to my (potential) kids so I am not worried in the long term. So at last I purchased a couple of shares in Disney and Diageo and one in Unilever. I’m looking to increase this to 3-4 shares over time and grab another in Diageo. This is all very gradual still and I’m learning a lot about volatility when investing in individual stocks, so my main investments will still stay in trackers and funds for the foreseeable future.

I have updated my chart on the next page to reflect this.

 

A few I am currently watching…

London Stock Exchange (LSE) – I’d been thinking about this one for a while and my hesitance proved a mistake again. I annoyingly missed the considerable rise, brought about by the announcement of their plans to acquire Refinitiv, which LSEs CEO described as being “a leading global provider of data, analytics and global financial markets solutions”, and their strong financial outlook for the first half of the year. The stock soared from ~£66 a share to an ATH of ~£72 a share last week and now resides around the ~£68 price point.

Berkshire Hathaway (BERK) – Currently sitting on $122 billion in cash, Warren Buffet’s company looks to be awaiting market uncertainty to bring about cheaper options to buy in.

Hargreaves Lansdown (HL) – The share price still hasn’t reached the valuation it saw before the Woodford news broke and questions were asked of their Wealth 50 list. I have had great experience with the company personally and they are still considered the largest online broker in the UK. They charge a premium for buying on their platform and are one of the most expensive out there, but people still flock to them for reliability. If they can hold their nerve through the Woodford issues, I see no reason as to why they can’t be a reliable option for a good few years yet.

 

A few extras…

Renewables Infrastructure and Robo Global  – An investment trust and a Robotics and AI ETF. These are long term holds for alternative energies and technologies. These will be put on ice for now until I have looked at other options like the three above.

 

My invested amount now is up to £500 and am currently holding £200 back to invest in any dips. I’d like to get my Freetrade account up to around £1000, while holding 4-6 stocks so as not to spread myself too thinly considering this is supposed to be my ‘riskier’ investments.

 

The App…

The app itself has undergone a number of changes, not least the addition of many more stock options including some fairly new IPOs like Beyond Meat.

They have also smashed a number of crowdfunding campaigns, bringing in a whopping £4million in their last round, reaching 400% of their target amount.

With this money, one of their ventures will be in opening up their platform to a number of European countries, with the waiting list for Ireland, France, Germany and The Netherlands already open.

They have also been trialling free shares for current customer for referring friends and family to their platform.

Finally – and arguably the most significant – the FCA have granted the company new permissions to explore fractional share trading. Where buying into the likes of Amazon (~$1,800 a share) or Alphabet (~$1,200 a share) may have been too much of commitment for some investors to just one stock, Freetrade are looking to allow investors, in the future, to soon be able to buy into any number of companies with any amount of funds they have. So not only are Freetrade bringing investing to more people through their fee free basic account, but also allowing those with slightly lighter pockets to invest in some of the biggest companies in the world; I see this is excellent news and really shows Freetrade’s ambition to bring investing to everyone.

 

I will be trying to write a post more regularly, and have a few ideas on the go at the moment, I just wanted to update the original post with more of a strategy and more experience on the Freetrade platform.

3 thoughts on “Freetrade review – update and direction

  1. I so want to buy into Disney but as it’ll go into my ‘fun’ Freetrade account, I don’t have the spare money to do so right now! But I think I may save up for it, or sell something to fund the purchase. I was interested in buying before the new Disney+ as I’ve been a longterm fan – their Marvel and Star Wars tie-ins as well as all the Frozen stuff just guarantees success for the future.

    Am a long time holder of Diageo, not added to my original small investment but happy to collect the dividends. Might consider adding to it. I always thought that I’d missed the boat with Unilever, or maybe just felt like it was never the right time to buy. Don’t know – it’s still on my watchlist anyway.

    Good luck with your shares!

    Liked by 1 person

    1. I wanted a significant holding in Disney for that exact reason too, but I hadn’t discovered Freetrade at that point and wasn’t prepared to pay the one off purchasing fees on HL. Because of that I missed the spike early on in the year when the pricing structure was announced.
      I just hope they can follow up the sub par Last Jedi with the final film of the trilogy next month. As a prequels baby I can now see why people had an issue with them when they first came out but I still swear by Phantom Menace as my favourite *hides head in shame*.

      Liked by 1 person

      1. I’ve managed to sell a few shares so I should be able to purchase 1 share in Disney soon!

        I don’t really dislike any of the Star Wars films, have my favourites (the Phantom Menace is not one of them!) and I enjoyed the recent two, though thought ‘The Force Awakens’ was the better film. Look forward to the final one.

        Liked by 1 person

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