#WealthTech / Exclusive: ‘Power to the people’ – Adam Dodds, Freetrade in “The Fintech Magazine”

London-based Freetrade is a commission-free trading app that aims to get everyone investing. Founder and CEO Adam Dodds set up the company in 2015 after relocating from Canada as a manager with KPMG and discovering that the investment account options in the UK were archaic and clunky…

… perhaps Freetrade’s most important innovative features are those on the surface – most notably its game-changing fractional shares approach. Some US stocks cost hundreds of dollars, if not more, for a single share – meaning many smaller investors miss out due to the share price being beyond their budget.

Fractional share trading means people can choose the amount of money they invest – from as little as £2 – rather than the number of shares they buy. Freetrade then works out how to get the user as many shares as possible for that price, with any resulting dividends split, based on the fraction of the stock owned.

… Crowdfunding has been central to Freetrade’s business model, with the company raising some £20million in alternative finance since its inception. In contrast to venture-backed startups, this has allowed the company to keep customers at the heart of its business… The effect of this is that Freetrade is, in many ways, like a public company with 10,000-plus individual shareholders…

… central to Freetrade’s mission remains its goal of enabling everyone to benefit from having access to wealth creation, with its website proudly stating: “We believe we can make an impact on rising inequality and make the world a more equitable place by giving access to markets and educational information.” For, as Dodds points out: “Finance is notoriously bad for using jargon to try and make it seem like it’s more complicated than it is.”

https://www.fintechf.com/01-news/exclusive-power-to-the-people-adam-dodds-freetrade-in-the-fintech-magazine/