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Freetrade ReviewFreetrade Review
Written by Elizabeth Anderson
Fact-checked by Steven Hatzakis
Edited by Carolyn Kimball
Your capital is at risk.
Freetrade is a newish investment platform known for its commission-free stock trading. Like other platforms including rival Trading 212, its aim is to get more people investing by reducing the cost.
You can invest a few pounds without being stung by trading charges, which means Freetrade is a great platform if you are new to investing and want to learn more about the stock market before committing much money.
-
Minimum Deposit:
£1 -
ISA:
Yes -
SIPP:
Yes
Freetrade pros & cons
Pros
- Low fees. There are no trading stock trading fees.
- Great value for those investing small amounts.
- Offers a stocks and shares ISA and a SIPP (for a monthly fee).
- Easy-to-use mobile app that offers great investment inspiration.
Cons
- Investment options are more limited than other platforms. Does not offer bonds or mutual funds.
- No web platform (still in beta mode).
- Limited research material for more experienced investors.
Overall summary
| Feature |
Freetrade
|
|---|---|
| Overall Rating |
|
| Charges & Fees |
|
| Investment Choices |
|
| Mobile App |
|
| Website |
|
| Ease of Use |
|
| Education |
|
Charges and fees
For beginner investors, the great thing about Freetrade is that you can invest in fractional shares – which means you don’t have to purchase one whole stock. This is particularly beneficial if you are investing in U.S. stocks, where share prices commonly run into the hundreds of pounds.
For example, you could choose to buy £30 worth of Apple shares, meaning you would own about a fifth of a share at today’s value. You would pay no trading fees, although you’ll pay a small currency conversion fee. I was charged a total of 11p when I tested this trade (0.39% foreign exchange fee for a Plus account).
Freetrade offers three account levels:
Basic account: This level carries no cost and allows you to invest in 1,500 stocks and ETFs through a general investment account. It still offers a decent range to choose from, including FTSE 100 and FTSE 250 companies and Vanguard and iShares ETFs.
Standard account: If you want more investment choice, and the option to save through an ISA, Freetrade’s ‘standard’ plan costs £5.99 a month, totalling £71.88 a year, although this is discounted to £59.88 if you pay annually.
You’ll get access to more than 6,000 investments, including more international shares, and you can earn 1% interest on uninvested cash up to a maximum of £2,000. You can also set up recurring orders and limit orders on stocks, meaning you buy or sell when a share reaches a specified price.
The £4.99 a month ISA cost can work out quite expensive if you have less than £10,000 to invest. You’d be better going through a platform that charges a percentage fee, such as Vanguard or AJ Bell.
Plus account: Freetrade’s third option, the Plus account, costs £11.99 a month (totalling £143.88 a year if paying monthly or reduced to £119.88 if paying annually). It is for those who want to save through a SIPP (self-invested personal pension). You’ll also earn 3% interest on up to £4,000 of uninvested cash and access to better customer service.
Overall, the basic account should do fine for many investors starting out – although the ISA option should be considered if you are looking to save higher amounts long-term and are not already paying into an investment ISA elsewhere.
Scenario pricing: When calculating annual share dealing costs, trading frequency and account balance are the two most important factors to consider. Assuming a £30,000 portfolio in a traditional, taxable share dealing account, here are four scenarios of how much Freetrade would cost based on trade frequency:
- 5 trades per year = £0 (Basic plan), £71.88 (Standard), £143.88 (Plus)
- 12 trades per year = £0 (Basic plan), £71.88 (Standard), £143.88 (Plus)
- 36 trades per year = £0 (Basic plan), £71.88 (Standard), £143.88 (Plus)
- 120 trades per year = £0 (Basic plan), £71.88 (Standard), £143.88 (Plus)
- 3 fund trades per year = N/A
| Feature |
Freetrade
|
|---|---|
| Minimum Deposit | £1 |
| Share Trading: 0-9 Deals/ Month | £0 |
| Share Trading: 10-19 Deals/ Month | £0 |
| Share Trading: 20+ Deals/ Month | £0 |
| Annual Custody Fee: £0 - £250,000 | £0 (Basic plan), £71.88 (Standard), £143.88 (Plus) |
| Annual Custody Fee: £250K-£500K | £0 (Basic plan), £71.88 (Standard), £143.88 (Plus) |
| Annual Custody Fee: £500,000 - £1m | £0 (Basic plan), £71.88 (Standard), £143.88 (Plus) |
| Annual Custody Fee: £1m and over | £0 (Basic plan), £71.88 (Standard), £143.88 (Plus) |
| Bonds - Corporate - Fee | N/A |
| Bonds - Government (Gilts) - Fee | N/A |
| ETFs - Fee | £0 |
| Investment Trusts - Fee | £0 |
| Telephone Dealing Fee | N/A |
What type of trader are you?
New to the world of investing? See my picks for the best UK trading platforms for beginners. More experienced traders should check out my guide to the best UK Trading Platforms for Active Traders. If you're looking to trade shares on the go, read my guide to the best UK stock trading apps.
Mobile trading apps
I like Freetrade’s mobile app, although it’s not as advanced as other platforms such as eToro, IG or Interactive Investor, which offer better research and chart tools.
You can search for stocks or ETFs, see newly added funds and what stocks and ETFs are popular that week. You can also see which companies have recently listed on a stock exchange through an IPO.
Companies are also organised by themes – e.g., gaming stocks or firms with female CEOs. This is unique among investment platforms and I found it an interesting way to find new companies around themes of interest to you.
Tap for a demo of Freetrade's U.K. trading app.
Website
The Freetrade website makes it easy to get started, giving clear links to what Freetrade offers and its pricing plans. There is also a ‘learn’ section featuring guides and market news. However, there is no web platform unless you are paying for the £11.99 a month Plus account. Even then, the web platform is very basic – simply allowing you to view your investments and search for stocks. You cannot yet buy or sell through the website — everything must be done through the app.
Freetrade says a web platform is in development. If you prefer to trade via a web platform, you may wish to check out alternatives like Interactive Brokers or IG.
| Feature |
Freetrade
|
|---|---|
| Web Platform | No |
| iPhone App | Yes |
| Android App | Yes |
| Stock Alerts | No |
| Charting - Indicators / Studies | 0 |
| Charting - Drawing Tools | 0 |
| Charting - Notes | No |
| Charting - Display Corporate Events | No |
| Charting - Stock Overlays | No |
| Charting - Index Overlays | No |
Investment choices
Freetrade’s investment options are limited to stocks, ETFs and investment trusts. Having said that, there are more than 6,000 U.K., U.S. and European stocks and ETFs to choose from, so any investor should still find plenty of choice.
Like eToro and XTB, Freetrade also offers the chance to buy fractional shares – a great option for investors not wanting to commit much money when starting out. However, fractional share trading is only available on U.S. stocks, and not on U.K. or EU-listed shares, which is a shame. This is because the U.K. tax regulator, HMRC, has not clarified whether fractional shares held in ISAs should be eligible for the tax-free benefits.
| Feature |
Freetrade
|
|---|---|
| Share Trading | No |
| CFD Trading | No |
| Funds | No |
| Research - ETFs | Yes |
| Bonds - Corporate | No |
| Bonds - Government (Gilts) | No |
| Investment Trusts | Yes |
| Spread Betting | No |
| Crypto Trading | No |
| Advisor Services | No |
Education
Freetrade offers a range of useful articles and guides on its website aimed at beginner investors. These include guides on what a stock is and how your investments are taxed. There are no official Freetrade educational videos, but many customers have uploaded user video guides on YouTube.
The educational material is aimed at novice investors. Those with more experience will find better research materials on other platforms such as Fidelity, Interactive Investor and Interactive Brokers.
| Feature |
Freetrade
|
|---|---|
| Education (Share Trading) | Yes |
| Education (Funds) | Yes |
| Education (Retirement) | Yes |
| Client Webinars | No |
| Client Webinars (Archived) | No |
Final thoughts
Investors should be aware that investing in individual stocks is risky. You are better to diversify and get a better chance of good long-term returns by investing in funds or ETFs that invest in many companies worldwide. Freetrade does not offer mutual funds, commonly used by many investors looking to diversify, but it does offer ETFs that offer the same diversification opportunities.
Overall Freetrade is a great platform to help you get to grips with investing. You will not lose money to expensive charges, although the price of your chosen investment may go down, of course, as the market fluctuates.
Sophisticated investors may find other platforms offering a wider range of investment options and tools, such as Interactive Brokers, Fidelity or IG, more suitable.
About Freetrade
Freetrade launched in the U.K. in 2019 and reports that 1.4 million clients have used its platform since that time, investing a total of £1.3 billion. Freetrade is growing quickly and is expanding across Europe, having launched in Sweden in late 2022.
How trustworthy is Freetrade?
Like all U.K. investment platforms, Freetrade is regulated by the Financial Conduct Authority, meaning your investments are protected up to £85,000 should the company go out of business for any reason. Freetrade is a trustworthy platform that has good reviews from its customers.
Is it worth investing with Freetrade?
It’s definitely worth investing through Freetrade if you are new to investing or stock trading. You can get to grips with how it all works without investing a large amount of money or paying fees.
Can you make money with Freetrade?
Like with any investing, whether you make money with Freetrade depends on the investments you choose. Do your research thoroughly and aim to diversify if you want the best chances of long-term returns.
Is the Freetrade app really free?
Yes, the Freetrade app is free for many users. You only pay a fee if you are looking to invest through an ISA or SIPP, or if you want access to a wider range of investors. But there is plenty for investors through the free ‘basic’ plan.
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Methodology
For the UK.StockBrokers.com Annual Review, we assessed, rated, and ranked 17 U.K. share dealing platforms over a 10-week time period. Each broker’s platforms and features were exhaustively tested by hand and graded on 53 different variables. In total, over 25,000 words of research were produced.
We thoroughly tested and compared features of prime interest to everyday investors, including but not limited to:
- Investment choices, such as whether the broker offers trading of shares, ETFs, funds, bonds, and CFDs; and offers SIPP and ISA accounts.
- The broker’s charges and fees for investing.
- Functionality and design of mobile apps and website platform, and a fluid experience moving between app and web.
- Usability of tools such as charting and watch lists.
- Market research, such as screening, news and analysis.
- Educational resources including tutorials, online courses, videos, webinars and articles.
Our rigorous data validation process yields an error rate of less than .001% each year, providing site visitors with quality data they can trust. Our lead researcher and writer, Elizabeth Anderson, has more than a decade’s experience as a financial journalist and market researcher. Elizabeth’s expertise is backed by a team of veteran fellow traders, data auditors, editors and project managers who work to ensure that UK.StockBrokers.com reviews and guides are the most unbiased and complete in the industry. Read more about our team.
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Show allAbout the Editorial Team
Elizabeth Anderson, lead writer and researcher, has been a financial journalist for more than a decade. In addition to her work with UK.StockBrokers.com, she has written extensively for major publications including BBC, The Times and Bloomberg. A keen investor herself, she is passionate about helping people understand finance and investing.
Steven Hatzakis is the Global Director of Online Broker Research for UK.StockBrokers.com and ForexBrokers.com. Steven previously served as an Editor for Finance Magnates, where he authored over 1,000 published articles about the online finance industry. Steven is an active fintech and crypto industry researcher and advises blockchain companies at the board level. Over the past 20 years, Steven has held numerous positions within the international forex markets, from writing to consulting to serving as a registered commodity futures representative.
Carolyn Kimball is a former managing editor for Reink Media and former lead editor for the StockBrokers.com Annual Review. Carolyn has more than 20 years of writing and editing experience at major media outlets including NerdWallet, the Los Angeles Times and the San Jose Mercury News. She specializes in coverage of personal financial products and services, wielding her editing skills to clarify complex (some might say befuddling) topics to help consumers make informed decisions about their money.