With its commission-free trading, no-fee basic plan, user-friendly app, useful analysis and well-supported community forum for social trading, Freetrade holds particular appeal for investment beginners. And, for investors with larger portfolios the fixed (opposed to percentage-based) monthly platform fees on non-basic plans can present better value.
Pros
- Commission-free share trading
- No platform fee on basic plan
- Good choice of investments on non-basic plans
- Pays interest on cash balances (on non-basic plans)
Cons
- Platform fees expensive for small portfolios
- No (OEIC) funds
- Desktop trading limited to plus plan
All your investments in one place
Table of Content
Show more
Show less
Who should choose Freetrade?
Freetrade is likely to appeal to investors looking for a low-cost trading platform for shares and ETFs. It charges no commission on share trading and no platform fee for basic plan account holders.
However, the flat platform fee for the standard and plus plans may attract investors with higher-value portfolios. By comparison, many of the mainstream platforms charge a percentage-based platform fee (typically 0.25% to 0.5%) of the value of the portfolio, which can be expensive for larger portfolios.
The range of investments varies according to the type of plan. There’s over 1,500 UK, US and European shares and ETFs under the basic plan and 6,000 plus investments under the standard and plus plans.
Unlike many platforms, Freetrade allows investors to buy fractional shares, which can be useful for trading in US shares with high prices for individual shares. It also charges a competitive foreign exchange fee of 0.45% on trading in non-UK shares.
Freetrade offers interest on uninvested cash balances in the non-basic plans, ranging from 1% for the standard plan to 3% for the plus plan (up to balances of £2,000 and £4,000 respectively).
Freetrade could also be a good choice for investors interested in social trading, with an extensive community forum. However, it is not possible to trade in funds or cryptocurrency through the platform.
To compare Freetrade against alternatives, visit our round up of Best Investment Trading Apps.
Freetrade offerings and features
Freetrade offers three types of plans:
- Basic plan (no fee): includes a general investment account with no monthly platform fee and access to over 1,500 shares
- Standard plan (£4.99 per month): also includes an ISA and access to over 6,000 shares, including a wider range of ETFs
- Plus plan (£9.99 per month): includes everything in the standard plan plus a Self-Invested Personal Pension (SIPP) and access to a dedicated customer service team.
Ready-made portfolios
Freetrade does not currently offer ready-made portfolios.
Freetrade enables investors to connect through its community forum, which covers share and general investing discussions, together with queries about the platform.
There is a separate section for beginners to ask investing questions, which is well-supported by more experienced investors.
Education
Freetrade has a solid educational offering, although not as extensive as some of the other providers. It produces regular stock market analysis and guides for investors wanting to learn more about investing.
Mobile apps
Freetrade’s investing app is available on both Android and iOS devices. Trading via a desktop device is only currently available to customers on the plus plan.
Automated trading tools, such as limit orders and stop losses, are only available under the standard and plus plans.
Security
Freetrade is regulated by the Financial Conduct Authority (FCA) in the UK.
The company uses third party banks and custodians to hold customers’ funds, which provides protection for customers in the event that the company went into liquidation.
Freetrade commissions and fees
Freetrade charges no share trading fees. As mentioned earlier, there is no platform fee under the basic plan and a monthly fee of £4.99 and £9.99 for the standard and plus plans respectively.
Trading in non-sterling denominated shares is charged at the spot rate plus a foreign exchange fee of 0.45%.
