Freetrade General Investment Account Review

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

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The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

Our bottom line

The Freetrade general investment account has two important features. Firstly, there’s no charge for trading UK investments. Secondly, it’s a well-designed app that’s easy-to-use.

This means it’s a great way for first-time investors to introduce themselves to the market. Although it’s still important to carry out plenty of research before deciding if investing is right for you and how you’d like to invest, as with investing your capital is at risk.

For more experienced traders, the app may not contain all the tools and options required. But, there are still plenty of investment options available with the basic account and Freetrade are hoping to revolutionise what it means to be an individual investor. There is also the option of becoming a Freetrade Plus member (for a fee of £9.99), giving you access to a wider range of investments and features. This includes a much larger selection of US & UK small-cap shares and funds.

The low-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 general investment account

A general investment account with Freetrade is completely free to set up 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 of starting 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.

Usability of Freetrade’s platform

Freetrade’s platform is extremely simple to use. It looks great and is straightforward to navigate. But, it’s still important you remember to take care and do your due diligence before deciding on any investments.

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’re unlikely to feel overwhelmed or confused when using Freetrade. Tracking your portfolio is extremely clear and you can easily set up a watchlist for any potential future investments.

Alongside the general investment account, it’s also straightforward to use a Freetrade Stocks & Shares ISA for your investments at a flat cost of £3 per month. Then there’s also the Freetrade Plus account, which includes the use of an ISA wrapper for the £9.99 fee. However you decide to invest using the platform, it’s all managed through the one tidy mobile application.

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. 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 and costs, but it’s still quite limited and not particularly in-depth.

However, Freetrade have been expanding their offerings outside of the app. On their main website the “Invest Hub” includes some great learning resources along with news and market insights. I’d also recommend signing up to their excellent newsletter “Honey”.

Freetrade’s customer service and support

If you need assistance with your account, you can access a customer support chat directly through the app. There are also extensive FAQs in the help centre and additional resources on the Freetrade website. Unfortunately there’s no phone support available.

In terms of customer reviews, on Trustpilot, Freetrade scores 4.3 out of 5 stars. As we write this, 81% have rated it ‘Excellent’ or ‘Great.’

Freetrade also supports an active user community where people can share thoughts and insights. Their website is also regularly updated with news and useful information.

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 general investment account a good choice for you?

If you’re new to investing or simply curious, Freetrade could be an excellent place to get started. The platform is extremely easy-to-use. The commission-free trading on UK shares 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 a wide selection of investments available on the platform and Freetrade are continuously updating and improving their offerings. There’s also the ability to use Freetrade Plus for a fee that includes even more investment options and some other useful benefits.

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.

Alternatives to consider

If you’re looking for a cheap share dealing platform that’s suitable for beginners and has an investing app, you should also check out: