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Freetrade

By: George Sweeney (DipFA) | Updated: 22nd April 2021.

Great for: simple and cheap investing.
5 stars question mark

Freetrade

Freetrade logo

If you want cheap and simple investing right at your fingertips, Freetrade could be the platform for you: the commission-free trading coupled with just a £2 minimum investment makes it a great app to dip your toes into the world of stock-picking. 

WHAT YOU NEED TO KNOW

  • Free trading with no commissions.
  • No monthly, annual, or inactivity charges for a basic account.
  • Invest from as little as £2.
  • Ability to purchase fractional shares of US companies.
  • Additional monthly account fees for S&S ISA, SIPP, or Freetrade Plus account.
  • FX rate charged equal to the current spot rate plus 0.45%.

DISCLAIMER

The value of your investments can go down as well as up and you may not get back all the money you put in. All investments carry a varying degree of risk and it’s important you understand the nature of these risks.

MyWalletHero believes in building wealth through long-term investing and so we do not promote or encourage high-risk activities including day trading, CFDs, spread betting, cryptocurrencies, and forex. Read more here.

what we like

  • Free trading
  • Simple and straightforward account opening
  • Attractive mobile app platform
  • PLATFORM FEE:

    £0.00
  • Share dealing charge:

    £0.00

WHAT YOU NEED TO KNOW

  • Free trading with no commissions.
  • No monthly, annual, or inactivity charges for a basic account.
  • Invest from as little as £2.
  • Ability to purchase fractional shares of US companies.
  • Additional monthly account fees for S&S ISA, SIPP, or Freetrade Plus account.
  • FX rate charged equal to the current spot rate plus 0.45%.

DISCLAIMER

The value of your investments can go down as well as up and you may not get back all the money you put in. All investments carry a varying degree of risk and it's important you understand the nature of these risks. Remember that taxes can be complicated and the tax benefits of this, or any, product depends on your personal circumstances. Tax rules are subject to change.

Our bottom line

The Freetrade app has two important features. Firstly, trading is commission free. Secondly, it’s a well-designed app and easy-to-use. This means it’s a great way for first-time investors to introduce themselves to the market. That being said, it may not contain all the tools and options required for experienced traders. There are still plenty of investment options available and Freetrade are hoping to revolutionise what it means to be an individual investor. The zero-fees approach means buying and selling shares on Freetrade is extremely accessible to everyone. Also, the sleek app and platform makes trading a pleasure and not a complicated chore.

Remember though, if you’re ever unsure about the suitability of an investment for your own circumstances, please seek independent financial advice first.

Top feature of Freetrade’s account

A basic account with Freetrade is completely free and there are no additional account fees or inactivity charges. This really is a casual or small investors’ dream. The free use of the platform and low entry prices can be a fantastic way to learn to invest. You also have the ability to buy fractional US shares. This means you can invest in an American company with a high share price for as little as £2. Freetrade also facilitates fractional dividends. So if your chosen investment pays dividends, you’ll receive a payment relative to the fraction of shares you own.

Freetrade commission prices

You can probably guess from the name of the company, but Freetrade does not charge a commission fee. This means that it is free to buy and sell investments. The lack of commission makes Freetrade an extremely attractive place to invest for both frequent and occasional investors. Having no additional costs to factor into your investing decisions makes life much easier.

Fees you should know about

Freetrade do charge fees to hold some of their other accounts. A stocks and shares ISA costs £3/month. The Freetrade Plus account costs £9.99/month (and includes use of an ISA account). Also, the upcoming SIPP account will include a flat £9.99/monthly charge (or £7/month for Freetrade Plus members).

Freetrade also charge an FX rate equal to the current spot rate plus 0.45%. This is extremely competitive and lower than most competitors who tend to charge a spot rate plus at least 1% on top. Some ETFs also have their own separate fund charges, so it’s always worth checking those.

Buying shares, ETFs and funds with a Freetrade account

Accounts can be funded via Google Pay or bank transfer, and orders can be executed instantly (during trading hours). Freetrade boasts a selection of almost 3,000 shares and funds with the free account. Although many major US and UK companies and funds are available, it’s a smaller selection than some competitors.

If you’re an experienced investor wanting access to a wide variety of investments, Freetrade may not have everything you’re looking for. There’s also no option for more complex investing methods like margin trading. This may deter seasoned investors; but for people just starting out, it keeps things simple.

The Freetrade Plus account does provide access to a wider range of stocks. For a premium of £9.99/month you have access to over 3,700 investment options, with more being added on a regular basis. You can also use the Plus account to create limit and stop-loss orders.

Freetrade’s platform

Freetrade’s platform is extremely simple to use. It looks great and is straightforward to navigate. Currently, Freetrade offers a general investment account (GIA), a stocks and shares ISA, a Freetrade Plus account, and they’re due to launch a SIPP (self-invested personal pension) shortly. Some investment platforms can take time to figure out. With Freetrade, that’s not the case. If you’re able to use something like Netflix, you’ll be fine with their app. It feels very welcoming and reassuring to new investors. You definitely won’t feel overwhelmed or confused when using Freetrade.

Freetrade’s research offerings

Freetrade provides all the key points and fundamentals at a glance. Experienced investors may have to look elsewhere (like The Motley Fool!) for additional information, research and news. Although, it’s often the case that the fundamentals are all you need to know when deciding on an investment. If you’re ever unsure about the suitability of an investment for your own circumstances, please seek independent financial advice.

The “discover” tab on the app is the starting place when looking for an investment. You can think of it like a contents page displaying new and popular investments along with categories and industries to choose from. You can also search securities by type and will be presented with an alphabetic list. Searching this way shows you the ticker, the current price, and the price performance over the last 30 days. Once you’ve selected a potential investment, an easy-to-read price graph is the first thing you’ll see. Underneath are a few important financial stats and a brief summary of the investment or company. You’re provided all the key information but it’s still quite limited and not particularly in-depth.

Service and support

Setting up a Freetrade account on the app is extremely simple. You just follow the instructions and fill out some basic information (including your NI number). As for customer service, you can access a support chat directly through the app. There are also extensive FAQs in the help centre and additional resources on the Freetrade website.

Unlike some other companies, Freetrade supports an active user community where people can share thoughts and insights. Their blog is also regularly updated with news and useful information. Do be mindful that any investment information and expert opinion provided on Freetrade’s website is not personal advice and is designed for investors who are happy making their own investment decisions. If you’re unsure about the suitability of an investment for your circumstances, you’ll want to seek out your own independent financial advice.

Is a Freetrade account right for you?

If you’re new to investing or simply curious, Freetrade is an excellent place to get started. The platform is extremely easy-to-use. The commission-free trading coupled with just a £2 minimum investment makes it a great place to dip your toes. For experienced investors looking for the widest range of investments and ways to invest, Freetrade may not have everything you’re looking for. That being said, there’s an extremely wide selection available and Freetrade are continuously updating and improving their offerings. So if you want cheap and simple investing right at your fingertips, Freetrade could be the platform for you. If you’re an experienced, technical investor – you may prefer a more serious and complex platform.


The Motley Fool receives compensation from some advertisers who provide products and services that may be covered by our editorial team. It’s one way we make money. But know that our editorial integrity and transparency matters most and our ratings aren’t influenced by compensation. The statements above are The Motley Fool’s alone and have not been provided or endorsed by bank advertisers.

Great for: simple and cheap investing.
5 stars question mark

Freetrade

Freetrade logo

If you want cheap and simple investing right at your fingertips, Freetrade could be the platform for you: the commission-free trading coupled with just a £2 minimum investment makes it a great app to dip your toes into the world of stock-picking. 

WHAT YOU NEED TO KNOW

  • Free trading with no commissions.
  • No monthly, annual, or inactivity charges for a basic account.
  • Invest from as little as £2.
  • Ability to purchase fractional shares of US companies.
  • Additional monthly account fees for S&S ISA, SIPP, or Freetrade Plus account.
  • FX rate charged equal to the current spot rate plus 0.45%.

DISCLAIMER

The value of your investments can go down as well as up and you may not get back all the money you put in. All investments carry a varying degree of risk and it’s important you understand the nature of these risks.

MyWalletHero believes in building wealth through long-term investing and so we do not promote or encourage high-risk activities including day trading, CFDs, spread betting, cryptocurrencies, and forex. Read more here.

what we like

  • Free trading
  • Simple and straightforward account opening
  • Attractive mobile app platform
  • PLATFORM FEE:

    £0.00
  • Share dealing charge:

    £0.00

WHAT YOU NEED TO KNOW

  • Free trading with no commissions.
  • No monthly, annual, or inactivity charges for a basic account.
  • Invest from as little as £2.
  • Ability to purchase fractional shares of US companies.
  • Additional monthly account fees for S&S ISA, SIPP, or Freetrade Plus account.
  • FX rate charged equal to the current spot rate plus 0.45%.

DISCLAIMER

The value of your investments can go down as well as up and you may not get back all the money you put in. All investments carry a varying degree of risk and it's important you understand the nature of these risks. Remember that taxes can be complicated and the tax benefits of this, or any, product depends on your personal circumstances. Tax rules are subject to change.