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  • Investment Style: DIY portfolios
  • Available Products: GIA, Stocks and Shares ISA, Freetrade Plus, SIPP
  • Customer Support: Live chat, email, social channels
  • Fee Type: Fixed; depends on the account type
  • Educational Materials: Available
  • FCA Regulation: Yes

minimum price:

Free

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Freetrade Review

Freetrade is an award-winning app for simple and free investing. In this Freetrade review, we’ll discuss the Freetrade advantages and disadvantages, so stay tuned to find out if trading on this platform is the next step to success.

Freetrade Review

minimum price:

Free

Visit Website
  • Investment Style: DIY portfolios
  • Available Products: GIA, Stocks and Shares ISA, Freetrade Plus, SIPP
  • Customer Support: Live chat, email, social channels
  • Fee Type: Fixed; depends on the account type
  • Educational Materials: Available
  • FCA Regulation: Yes

Best For

DIY stock investing

STRENGTHS

  • User-friendly interface
  • Fixed fees
  • Free GIA account
  • Referral program

WEAKNESSES

  • Limited selection of investments
  • Live chat feature isn’t available to all users

With investing in assets being the centre of attention for the last few years, many new apps and platforms emerged to help casual traders transition into full-time traders as easy as possible. 

While you may have heard about Interactive Investor or eToro, I want to show you that less popular players can also be a good option. In this Freetrade review, you’ll read about a free trading app that has outperformed many competitors. So, if you want to maximise your profits and deal on a reliable platform, read on!

 

What Is Freetrade?

Freetrade is a financial technology company based in the UK. Its journey began when its founder, Adam Dodds, moved to the UK and discovered that the investment platforms in this country weren’t to his satisfaction. He disliked their approach to investing and the little concern over fees. Hence, he decided to give traders the opportunity to execute trades cheaper and faster. As a result, the idea of building a reliable investment platform was born. 

Freetrade was established in 2016, but it wasn’t until 2018 that it launched its first iOS app. The company introduced an app for Android users a year later, making its platform available on most household devices. 

Who Is Freetrade Best for?

Freetrade’s primary goal is to make investing simple and make money transparently. This includes charging a fair price for the app and ensuring everyone can benefit from its freemium service. 

Although this share dealing platform is available in the UK only, we can expect an expansion later this year. Note that you must be 18 or older to join the Freetrade community and use the platform for hassle-free investing.

Freetrade is for anyone who doesn’t want to lose a chunk of their profits to unreasonably high fees, including:

  • Experienced investors
  • Investors who want to buy fractional shares
  • Investors exploring international markets
  • Investors who want to avoid high withdrawal, deposit, and account fees

Most of Freetrade’s services are free, allowing you to maximise your earnings and find a plan suitable to your needs. 

How Does It Work?

Freetrade is not your average trading app where you can day trade and deal with CFDs (Contract for Differences). Instead, it is a simple way to invest in stocks, investment trusts, and ETFs. Investing and account management is done through the app, and only Freetrade Plus members can access Freetrade via the web. 

Freetrade offers access to over 6,000 US, UK, and European shares. You can buy and sell them commission-free on this online trading app and build a diversified investment portfolio from scratch. 

If you open a Freetrade account, you’ll be entitled to Freetrade dividends. Many companies whose shares you can purchase on Freetrade pay dividends, and if you invest in them, you’ll get some extra cash into your account. 

Since Freetrade doesn’t offer any investment advice, clients can only invest in DIY portfolios. Unsurprisingly, this policy is a double-edged sword. Even though Investing in DIY portfolios can help you elevate your trading skills faster, it can also lead to irresponsible and uninformed decisions, making you lose a big chunk of your profits.

The app features a simple interface, and as long as you follow the market trends and discuss your investments with a financial advisor, you likely won’t have any significant issues.

Accounts and Services

The next step in this Freetrade review is to discuss the account types you can open on this stocks and shares app. Freetrade has a decent selection of investment accounts, so let’s see which one is the most suitable for you. 

General Investment Account

General Investment Account (GIA) is Freetrade’s most popular product. You can open this account free of charge, and you won’t have to pay the monthly share dealing account fee. 

A GIA account features free trades, but it’s limited in terms of share availability. Keep in mind that GIA earnings above £12,300 are taxable. Also, if you earn over £2,000 per year in dividends, your earnings will be subject to UK tax.

With a Freetrade GIA account, you can start your investing journey with as little as £2. Moreover, since GIAs don’t have any investment limitations, you can invest as much money as you’d like and use it to trade on the available markets.

Stocks and Shares ISA

Stocks and Shares ISA is an excellent investment product that allows you to shelter your investment returns. It’s suitable for those who want to tuck away their investments and make investing a habit. 

Another incentive to invest in Freetrade ISA is that you won’t have to pay income or capital gains tax on your investments. Additionally, Freetrade doesn’t charge percentage fees on Stock and Shares ISAs. Instead, you’ll pay a fixed £3 fee per month, regardless of how much money you save.

Speaking of savings, Stocks and Shares ISAs have a £20,000 annual allowance. That said, these accounts are ideal for first-time investors with medium-term goals. 

Freetrade lets you select thousands of valuable stocks and shares and begin investing with only £2. In other words, this service provider allows you to buy fractional shares, which is good news if you intend to invest in industry giants such as Apple or Google.

Freetrade Plus

A Freetrade Plus account can help you diversify your portfolio, as it includes a broader stock selection. This premium membership features a free Stocks and Shares ISA, as well as extra features other account holders don’t have access to.

For example, you can earn 3% interest on cash deposits of up to £4,000. On top of that, Freetrade Plus account holders can limit orders and stop losses to get the most out of their trading experience.

With priority customer support, Plus members don’t have to wait to talk to a customer support representative. Another great benefit of Freetrade Plus is that this service provider continually introduces new features.

Freetrade SIPP

Saving for your future has never been easier with Freetrade SIPP accounts. These tax-efficient investment products are ideal for taking control of your finances and preparing for a worry-free pension. 

You can invest up to 100% of your salary in this account and receive tax relief on investments below £40,000 per year. What’s more, you’ll have complete control of your pension, meaning you’ll be able to decide how and where your invested money goes.

Freetrade Fees

As stated earlier, Freetrade offers commission-free trading. However, you will have to pay currency exchange rates, which will cost you an additional 0.45% added to the spot rate. 

Note: It’s advisable to contact Freetrade customer support for more information about spot rates.

Here’s a breakdown of Freetrade pricing based on the account type:

 

Account type GIA Stocks and Shares ISA Freetrade Plus Freetrade SIPP
Monthly fees £0.00 £3 £9.99 £9.99

 

Freetrade offers free pension transfers to new clients. So if you hold a SIPP account with another service provider, you can transfer your investments to Freetrade free of charge. In case you decide that Freetrade isn’t a good fit for you, this service provider won’t charge you any transfer-out fees.

Account Setup and Withdrawals 

When scouting for an investment platform, you want to find the one that ensures a fast and convenient signup process. With Freetrade, you can create an account and start investing in only a few minutes. So, let’s talk about the Freetrade account setup.

Account Setup

You have to be a UK resident with a bank account to open a Freetrade account. 

You’ll also need to provide the following info/documents:

  1. Personal details (your full legal name, address, email, and phone)
  2. Personal National Insurance number
  3. A passport or a driving licence 
  4. Financial information, including your credit card number

Note: You’ll have to download the app to create a new account. If you follow the instructions, it won’t take you longer than ten minutes to get it done. 

Withdrawals and Deposits

Withdrawing money from a Freetrade account is straightforward. The Freetrade withdrawal fee is £0, saving you a few pounds on each withdrawal. Follow these steps for a successful withdrawal:

  1. Log into your Freetrade account
  2. Click on the Account tab
  3. Scroll down until you find the Withdraw button
  4. Specify how much money you want to withdraw
  5. Click on the Confirm Withdrawal button

If you want to deposit money to your Freetrade account, you’ll have to follow a similar process. Find the Deposit button, type in how much you want to deposit and choose a payment method. The fastest and most common payment method is bank transfer, so it would be best to stick to this option.

Mobile App

The Freetrade stock trading app is available on Google Play Store and App Store, and you can install it on most household devices. The app is easy to navigate, allowing you to view your portfolios and withdraw or deposit money into your account. 

If you like the Freetrade app, you should recommend it to your friends. Freetrade will give you a free share worth £3–£200 for every referral, so don’t miss out on this opportunity.

Security

Freetrade is regulated by the FCA, a reputable regulatory body in the UK. Additionally, deposits of up to £85,000 are covered by the FSCS. You should also know that clients’ funds are segregated, preventing Freetrade from using your investments to cover its debts or expenses.

Freetrade Competitors

With eToro, Nutmeg, and Interactive Investor operating on the UK trading scene, it’s safe to say that Freetrade has strong competition. But, can this UK investment platform outperform its competitors? There’s only one way to find out, so let’s compare them side by side.

Freetrade vs eToro

Freetrade and eToro both offer exposure to attractive stocks and ETFs, with eToro being more oriented around crypto investments. However, that’s not the only difference between these platforms. eToro allows CFD and day trading, while Freetrade doesn’t due to the increased risk of capital losses. 

Freetrade is a mobile-only platform, while eToro gives you the option to choose whether you want to access the platform via desktop or mobile devices. For some people, a mobile-oriented platform is a dealbreaker, as they prefer sitting in front of the computer screen when handling their investments. 

So, if you require a web-based platform you can access via PC, opt for eToro. However, if you want to open an ISA, GIA, or SIPP account, Freetrade is the app you’re looking for.

Freetrade vs Nutmeg

Nutmeg has a £500 minimum requirement for ISA accounts, while Freetrade allows you to start investing with as little as £2. Unlike Freetrade, Nutmeg charges percentage fees, so the cost of using Nutmeg services will depend entirely on your investments.

Freetrade will charge you fixed monthly fees, depending on which account you hold. Still, the charges are below-average, making Freetrade one of the cheapest brokers in the UK. However, it’s worth noting that Nutmeg offers a broader selection of investment products.

Customer Support

If you want to contact Freetrade customer support, you can send them an email or reach out to them on social channels, such as Instagram, Facebook, LinkedIn, or Twitter. Freetrade Plus members have access to priority customer support, allowing them to contact Freetrade agents via in-app live chat. 

Generally, Freetrade customer support requires improvement, as the live chat feature should be available to everyone. Of course, you can send them a message on social channels, but it would be a lot easier to resolve all your queries via the app.

User Reviews

Freetrade has a 4.3/5 star review on Trustpilot. Users are satisfied with how this app works, but many suggested improvements that could enhance their user experience on Freetrade. For example, some users claim the app is functional but too basic, urging Freetrade to make design changes and introduce new features.

Freetrade User Reviews | CyberCrew

Conversely, some users complain about not receiving a Freetrade free share. Freetrade promised to give a share to everyone participating in the referral program, but some claim they never received it. Others aren’t satisfied with customer support, which is reasonable considering their limited efforts to accommodate users.

Wrap Up

Now that this Freetrade review is coming to an end, we can conclude that Freetrade is an excellent investment app for those who want to avoid hefty fees. However, it undoubtedly requires more attention from its developers, as users don’t appreciate simplicity as much as they used to. 

Still, if you turn a blind eye to the lack of features and simplicity, Freetrade is a great app that will help you make the most of your investments.

FAQ

Is Freetrade legitimate?

Yes, Freetrade is a legitimate app regulated by one of the strictest regulatory bodies in the UK. Additionally, thousands of user reviews show clients’ satisfaction with the app, most of them praising how easy it is to deposit and withdraw money from the accounts. That said, Freetrade is not a scam, and you can use it to save for the future and invest in a decent selection of assets. 

Is Freetrade good for beginners?

Freetrade is a good platform for beginners who want to learn the ins and outs of investing in DIY portfolios. However, if you aren’t ready for this commitment to investing, it’s advisable to find a robo-advisor service provider to take care of your investments on your behalf. 

Does it cost to withdraw from Freetrade?

Freetrade doesn’t charge withdrawal and deposit fees. You can deposit or withdraw funds as many times as you want without facing additional charges.

How long does it take to withdraw from Freetrade?

Freetrade withdrawals usually take 3–5 business days to process. Unfortunately, this could be an issue if you need instant access to your funds, which is why it would be best to request a withdrawal a few days before you need access to your money. 

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