Freetrade has just launched UK Treasury Bills for their customers, which have previously only been available to UK investors in minimum order sizes of £500,000. So, I have a chat with Adam Dodds, the Freetrade CEO, about how to invest in UK Treasury Bills on Freetrade and how investors can benefit from them.
With Freetrade you can invest in 28-day UK Treasury bills with as little as £50. The catch here is that you cannot sell or cash out of your Treasury bills – you will need to wait for them to mature to get your capital back.
And your money could be tied up for longer than the maturity period. For example, your money is generally tied up for about 31 days for a 28-day UK Treasury bill.
So, you need to be sure that you won’t need access to your money before the maturity date.
You can watch the full interview below or listen on Spotify.
We discuss Freetrade’s history, its Good Money Guide Awards, as well as the evolution of the market for low-cost or free stockbrokers. Adam and I then delve into the concept of UK Treasury Bills, explaining that they are short-term IOUs from the government and offer a relatively risk-free rate of return.
We also discuss the mechanics of how to invest in UK Treasury Bills and the benefits of investing in them through Freetrade as opposed to directly with the DMO. We also cover the risks and protections for investors, as well as the availability of fractionalised shares in ISAs.
We finish up with some quickfire questions about how Adam invests his own money and some tips for investors around continually investing and avoid trying to time the market.
In this interview we discuss:
- Freetrade’s History & Awards
- Overview of UK Treasury Bills
- Comparison with Traditional Bonds
- Investing in UK Treasury Bills through Free Trade
- Risks and Protections for Investors
- Fractionalized Shares in ISAs
- Quickfire Questions About Adam’s Investing
- Tips & Guidance for Investors
Richard is the founder of the Good Money Guide (formerly Good Broker Guide), one of the original investment comparison sites established in 2015. With a career spanning two decades as a broker, he brings extensive expertise and knowledge to the financial landscape.
Having worked as a broker at Investors Intelligence and a multi-asset derivatives broker at MF Global (Man Financial), Richard has acquired substantial experience in the industry. His career began as a private client stockbroker at Walker Crips and Phillip Securities (now King and Shaxson), following internships on the NYMEX oil trading floor in New York and London IPE in 2001 and 2000.
Richard’s contributions and expertise have been recognized by respected publications such as The Sunday Times, BusinessInsider, Yahoo Finance, BusinessNews.org.uk, Master Investor, Wealth Briefing, iNews, and The FT, among many others.
Under Richard’s leadership, the Good Money Guide has evolved into a valuable destination for comprehensive information and expert guidance, specialising in trading, investment, and currency exchange. His commitment to delivering high-quality insights has solidified the Good Money Guide’s standing as a well-respected resource for both customers and industry colleagues.
You can contact Richard at richard@goodmoneyguide.com
