Freetrade Review 2024

Freetrade is a UK broker that specialises in stocks, ETFs and other equity investment products. With zero commission, no deposit or withdrawal fees and over 6,000 stocks and ETFs to invest in, more customers are registering with Freetrade all the time. This 2024 review will examine the broker’s trading platform, payment methods, account types and more.

Freetrade Headlines

Freetrade Ltd was established in 2016 and has evolved into a brokerage that has had its number of users confirmed to be over one million. As a UK company with its headquarters in London, the broker is regulated by the Financial Conduct Authority (FCA). Its founder and CEO is Adam Dodds. In 2021, the platform generated £12.7 million in revenue, although in January 2021 it failed to attract new investors at a valuation of £700 million.

This broker has won multiple awards, including the ‘Best Online Trading Platform’ (2019-2022) at the British Bank Awards. Its success and growth have caught the eye of large venture capital firms and investors who have subsequently fed money into Freetrade. It is an innovative company that has previously had a public roadmap of its plans and ideas and has a mission to make trading simpler and more affordable.

Trading Platform

No external trading platforms are used by this firm. Instead, the broker uses its own in-house platform named ‘Invest by Freetrade’. The platform is based entirely on a mobile app (not on the web), which means that positions cannot be opened or closed on a desktop. That said, the broker is in the process of building a web platform that would allow clients to view and manage their investments. The main points to note regarding the mobile app trading platform are as follows:

• Basic order types
• Simple order process
• Standard charts show price movement
• Lacks advanced technical analysis tools
• Advanced search tool to easily locate assets
• Triggered, limit and stop loss orders are only available on the Standard and Plus plans

Freetrade Mobile Platform

Freetrade does not have an official API.

Freetrade Markets & Instruments

Freetrade has over 6,500 assets, some of which have monthly dividend payments. Although these are mainly concentrated on stocks and ETFs, the full list is as follows:

• 6,000+ UK, US and European stocks and ETFs, including Airbnb and GME shares, as well as FTSE 100 index funds
• 150+ investment trusts
• 200+ SPACs
• 160+ REITs

The full list of stocks can be found on the broker’s website. Note that Freetrade does not offer cryptocurrencies like Bitcoin or commodities such as gold or crude oil.

Fees

With the Freetrade stock universe, investing is commission-free on all account types across all assets, including stocks and ETFs. Although there are no inactivity fees or deposit/withdrawal costs, there are overseas FX share charges. The fee is the spot exchange rate + 0.45%, which traders may find is not an insignificant amount.

The main fee investors need to account for is the monthly account charge. However, there is a free account option if traders opt for the Basic plan. The Standard and Plus plans are premium subscriptions and attract fees of £4.99 and £9.99 a month, respectively. More details on account types are given further down. Overall, this broker is relatively cheap compared to its competitors.

Leverage

There is no leverage or margin trading account available on Freetrade. Although leverage can often help to diversify a trader’s portfolio by allowing their capital to ‘go further’, this broker offers fractional share trading. This performs a similar purpose in allowing clients to invest in an asset with a smaller amount than would usually be required.

Mobile Trading

Freetrade has a mobile app available on iOS and Android. Downloading this app is essential as there is no desktop or browser-based trading platform that is compatible with this broker. There are no alternatives to the in-house platform. We undertook a review of the app and found it to be constructed with the user in mind and easy for beginners to learn how to use.

Payment Methods

Deposits

There are no deposit fees nor a minimum deposit amount at Freetrade. That said, our experts noticed that the funding options are limited and only include the following:

• Bank transfers
• Apple Pay and Google Pay

Instant bank transfers should arrive within a couple of minutes although standing orders generally have a slower deposit time. Money can be sent from any fully authorised UK bank. Funds from Apple Pay and Google Pay should be available to invest with immediately. However, there is a £250 lifetime limit and traders can only use a debit card for Apple Pay/Google Pay, not a credit card. Freetrade does not accept deposits from e-money accounts such as Revolut or accounts that are not in the investor’s name.

Withdrawals

There are no withdrawal fees at Freetrade. Withdrawals must be made to your linked bank account and the time is usually 2-3 working days but can take up to five working days. Investors cannot withdraw unsettled cash but can reinvest this on the app.

Demo Account

Unusually for a broker of this size, Freetrade does not have a demo account where traders can get to grips with the trading platform or practice their trading strategy. That said, with clients being able to invest from as little as £2 in fractional shares, this firm makes its platform accessible to beginners and allows them to start small.

Bonuses & Promotions

Although Freetrade has had promotions in the past, there are currently no welcome deposit bonuses or similar incentives advertised.

Freetrade Regulation

Freetrade is regulated by the FCA, a robust regulatory body trusted by investors around the world. It monitors the activities of financial services firms closely and puts in place protections to reduce the risk of retail investors losing significant sums. We would recommend choosing a firm that is regulated by a reputable organisation like the FCA.

Account Types

There are three main account types: General Investment Account, Stocks and Shares ISA and Self-Invested Personal Pension (SIPP). There are also three different types of plans, which are either free or have a monthly fee. The Standard and Plus plans allow traders to earn interest on uninvested cash. Some plans allow access to all account types, while others do not. Our experts have detailed the different account types and plans below. Note that you can easily move an existing pension or Stocks and Shares ISA to Freetrade.

General Investment Account (GIA)

• No investment limit
• Supported by all three plans
• Overseas shares charge is the spot exchange rate + 0.45%
• Returns may be subject to UK capital gains tax (CGT), as well as a tax on dividends, if above relevant thresholds (you can request a dividend statement from the customer support team)

Stocks & Shares ISA

• Supported by the Standard plan or the Plus plan
• Overseas share charge is the spot exchange rate + 0.45%
• Can transfer existing UK Stocks and Shares ISA to Freetrade
• Invest up to £20,000 tax-free each year (the UK tax-free allowance may change each tax year)

SIPP

• Only available with the Plus plan
• Transfer and combine other pensions
• Basic rate tax relief up to £40,000 each year
• Overseas share charge is the spot exchange rate + 0.45%
• Can only access once you reach the age of 55 (likely to rise to 57 soon)

Basic Plan

• Free
• Fractional US shares
• Commission-free trades
• Only enables access to the General Investment Account
• 1,500+ shares and ETFs (Vanguard, iShares and Invesco ETFs)

Standard Plan

• £4.99/month
• Automated order types
• Includes everything in the Basic Plan
• 6,000+ US, UK and EU stocks and ETFs
• 1% interest on uninvested cash up to £2,000
• Enables access to the General Investment Account and Stocks and Shares ISA
• Advanced stock fundamentals (including analyst ratings to guide you in choosing stocks)

Plus Plan

• £9.99/month
• Freetrade Web beta
• Priority customer service
• Includes everything in the Standard plan
• 3% interest on uninvested cash up to £4,000
• Enables access to all three account types including SIPP

How To Invest On Freetrade

1) Sign Up For A Trading Account

The first step is to register for a new account. This has to be done using the mobile app and you will be required to verify your email address, add your date of birth, confirm you are not a US citizen and enter other personal details, including your National Insurance Number. Once submitted, your details are then reviewed by the firm, which usually takes one day. Clients will then need to upload a photo ID and take a selfie. The minimum age to open an account is 18.

2) Link A Bank Account And Deposit Funds

Once your account registration has been approved by Freetrade and you can login, the next step is to link your bank account. The linked account must be in your name and cannot be an e-money account or a joint account. Once linked, investors should then proceed to deposit funds. There is no minimum deposit but the minimum investment is £2.

3) Choose A Market

All investing on Freetrade is commission-free but overseas markets and assets may attract an overseas share charge of the spot exchange rate + 0.45%. At a minimum, investors need to understand the factors that influence the market they are trading in. For example, REITs are heavily linked to the property market, which, in turn, is often linked to the state of the overall economy. Investors seeking diversification to manage risk should consider ETFs and investment trusts. Investment trusts will usually be more expensive than ETFs because of research and management costs.

4) Open A Position

Once you have chosen a market and an asset, investors will need to open a position on the Freetrade platform. Timing the opening of a position can be difficult and traders should make use of the market analysis material to ensure the order is made at the optimal share price. Clients may wish to access an external economic calendar to see upcoming market events.

Benefits Of Freetrade

• Zero commission
• £2 minimum trade
• Thousands of assets
• Regulated by the FCA
• Fractional share trading
• Free deposits and withdrawals
• Tax-efficient investing accounts

Drawbacks Of Freetrade

• No leverage
• Overseas share charge
• Limited deposit options
• No choice of trading platform

Additional Features

There is an education and learning section on Freetrade, comprising various guides covering topics from ‘how to value stocks’ to ‘how much money should I invest?’. Although the guides cover useful topics, particularly for beginners, more variety in educational material would be welcome, such as tutorial videos or webinars. There is also a blog that mainly features company news and a dictionary useful for beginners who struggle to understand financial jargon.

In addition to the educational material, there is a market analysis section that provides useful insight into financial news to help guide traders in choosing the best stocks. There is also a dedicated section on upcoming IPOs so you can see what new stocks there are. Another way to gain insight into the market is by signing up for the Freetrade newsletter.

Trading Hours

Trading hours on Freetrade depend on the market in question. Stock markets have different opening and closing times depending on where they are in the world. This means an exchange in the US will have different market hours from one in Europe. The London Stock Exchange is open Monday-Friday from 08:00 to 12:00 BST and from 12:02 to 16:30 BST. Any orders placed outside opening hours will be queued for execution on the next trading day.

Customer Support

The easiest way for customers to contact the Freetrade support team is either through the in-app live chat or by email. There are multiple email addresses, depending on the nature of your query, each outlined below. While there is no general phone number or helpline, clients on the Plus plan can chat with a member of the customer service team.

There is also an FAQs section and the Freetrade Community (the broker’s online forum) may be another place where investors can get answers. Clients can often get a response to a query on Twitter, LinkedIn, Instagram, YouTube and Facebook.

Safety

Investors with this firm receive protection from the Financial Services Compensation Scheme (FSCS), which protects customer deposits up to £85,000. The broker’s funds are also kept separate from client funds. In addition, stocks and ETFs are held by Freetrade Nominees Ltd in CREST, which is the UK’s central security depository. Assigning funds in this way helps protect customer investments from creditors in the event of insolvency. US-listed stocks follow a similar approach – they are held with a third-party SEC-registered broker at the Depository Trust & Clearing Corporation. That said, some US-listed stocks are still held in CREST.

Final Word On Freetrade

Freetrade is a zero-commission and tax-efficient broker that provides access to thousands of assets from penny stocks to more expensive ETFs and investment trusts. Although the overseas forex charge can quickly add up if investing in foreign assets, the simplicity of Freetrade’s offering and the fact that the broker is FCA-regulated will encourage many to sign-up.

FAQ

Top 3 Freetrade Alternatives

These brokers are the most similar to Freetrade:

1. Interactive Brokers - Interactive Brokers (IBKR) is a premier brokerage, providing access to 150 markets in 33 countries, along with a suite of comprehensive investment services. With over 40 years of experience, this Nasdaq-listed firm adheres to stringent regulations by the SEC, FCA, CIRO, and SFC, amongst others, and is one of the most trusted brokers for trading around the globe.
2. IG Index - Founded in 1974, IG is part of IG Group Holdings Plc, a publicly traded (LSE: IGG) brokerage. The brand offers spread betting, CFD and forex trading across an almost unrivalled selection of 17,000+ markets, with a range of user-friendly platforms and investing apps. For 50 years, IG has maintained its position as an industry leader, excelling in all key areas for traders.
3. Swissquote - Swissquote is a Switzerland-based bank and broker that offers online trading and investing. The company has a high safety score and is listed on the Swiss stock exchange. The firm offers a huge range of products, from stocks, ETFs, bonds and futures to 400+ forex and CFD assets. Hundreds of thousands of traders have opened an account with the multi-regulated brokerage. Clients can get started in three easy steps while 24/7 customer support is available to assist new users.

Freetrade Feature Comparison

Trading Instruments Comparison

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