Freetrade is one of the disruptors in the U.K. stock trading and investing world, alongside Capital.com and Trading 212. Its low-cost, commission-free model allows trading of fractional shares, with regulation from the FCA and a solid, user-friendly, gamified mobile trading app, and the educational offering is of good quality and decent depth. The low price does come with a cost, however, in terms of very limited research, limited offering of investments and the lack of an online trading platform. Our take: Freetrade is one to watch for the future.
Freetrade pros & cons
- Zero commission and almost no hidden costs or fees for trading major U.K. and U.S. shares (there is an FX fee for non-GBP deposits of spot + 0.45%).
- Stocks, fractional shares, ETFs, investment trusts, SPACs and REITs are all on offer.
- Decent educational offering.
- Very user-friendly mobile trading app.
- Limited research available, apart from the market news and emailed Honey newsletter.
- No online trading platform or charting package; everything is done through the mobile app.
- You cannot invest in bonds or funds.
About the Editor
Carolyn Kimball is managing editor for Reink Media and the 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.
About the Author
Steve Miley With 30 years of experience in institutional financial markets, Steve has won multiple awards from Technical Analyst Magazine, including "Best Independent Fixed Income" and "Best FX Research." In addition to his work with StockBrokers.com, Steve is the founder of The Market Chartist, where he provides market research for institutional clients; and is editor-in-chief for FXExplained.co.uk.