Freetrade offers commission-free investment and a wide range of assets. Is Freetrade right for you? This comprehensive review explores the key features, benefits, and potential drawbacks of Freetrade to help you determine if it is the right investment platform for your needs.
Freetrade broker review
Freetrade has emerged as a popular online investment platform known for its commission-free trading experience. Designed for accessibility, it suits investors of all levels. With Freetrade, you can easily buy and sell shares, including stocks, ETFs, investment trusts, and UK treasury bills.
Freetrade trading platform is accessible through iOS, Android, and web browsers. Freetrade offers a variety of deposit methods and multiple ways to reach customer support. Freetrade values accessibility, simplicity, transparency, innovation, and customer focus. They strive to make investing easy for everyone, provide a user-friendly platform, be transparent about their operations, continuously improve their services, and prioritize customer satisfaction.
How does freetrade work?
The steps of Freetrade works are given as follows:
- Open a Freetrade account.
- Add money to your account.
- Explore investment options like stocks, ETFs, and UK Treasury Bills.
- Buy or sell investments.
- Monitor your investments and market trends.
- Withdraw money to your bank.
Freetrade regulations
Is Freetrade a scam? No. It is a trading name of Freetrade Limited, which is a member firm of the London Stock Exchange and is authorized and regulated by the Financial Conduct Authority (FCA). This means that Freetrade is subject to strict regulations and oversight from the FCA, ensuring that it operates within the boundaries of UK financial laws and regulations.
- Freetrade prioritizes your investment security. Your funds are held in segregated accounts under the FCA’s CASS rules, providing Freetrade protection against company insolvency.
- The Financial Services Compensation Scheme FSCS covers investments such as stocks, shares, bonds, investment trusts, and certain derivatives.
- If Freetrade goes bankrupt and can’t repay your money, the Financial Services Compensation Scheme FSCS will cover up to £85,000 per investor.
Freetrade account types
Freetrade reviews offer three account types. They are given as follows.
- General Investment Account (GIA)
- Stocks and shares ISA account
- Self-Invested Personal Pension account (SIPP)
| Features/ Account types | Basic account | Standard account | Plus account |
|---|---|---|---|
| Monthly fee | Free | £4.99 | £9.99 |
| Annual fee | N/A | £59.88 | £119.88 |
| Account type | General Investment Account (GIA) | GIA, Stocks and Shares ISA | GIA, Stocks and Shares ISA, personal pension |
| FX Fee (USD/EUR) | 0.99% | 0.59% | 0.39% |
| Number of Stocks/ETFs | 4,800+ | 6,200+ | 6,200+ |
| US fractional shares | Yes | Yes | Yes |
| Automated order types | No | Yes | Yes |
| Interest on uninvested cash | 1% on up to £1,000 | 3% on up to £2,000 | 5% on up to £3,000 |
| Customer service | Basic | Basic | Priority |
| Stock and ISA Shares | No | Yes | Yes |
| Mobile app and web platform | Yes | Yes | Yes |
| Advanced stock fundamentals | No | Yes | Yes |
Each account type provides access to a range of investment products, including stocks, ETFs, and US fractional shares. You can also choose to open a Stocks and Shares ISA or a Personal Pension within the Standard or Plus accounts.
Freetrade trading platform
Freetrade broker is a comprehensive online broker offering a user-friendly platform for investors of all levels. With a wide range of financial products, real-time market data, and extensive portfolio analytics, Freetrade simplifies investment management.
Freetrade offers commission-free trading making it accessible to a wider audience. The mobile app provides real-time alerts and a full investing ecosystem, making it a convenient choice for modern investors. It has the following features.
- User-friendly trading platform for beginners and experienced investors
- Real-time market data
- Extensive portfolio analytics
- Access to over 6,000+ UK, US, and European stocks
- Transparent Freetrade pricing
- Accessibility to a wider audience
- Mobile-first app with a range of financial instruments
Freetrade financial assets
Freetrade offers a diverse range of investment options, including thousands of stocks and ETFs, investment trusts, and UK treasury bills.
Stocks
Invest in thousands of companies listed on the Stock Exchange, New York Stock Exchange, NASDAQ, and European markets. Buy portions of US stock markets, making investing in high-priced companies more accessible.
ETFs
Exchange-traded funds (ETFs) offer a versatile investment option. By bundling multiple assets like stocks, bonds, or commodities, ETFs provide diversification, reducing risk. Many ETFs track specific market indexes, exposing you to a broad range of assets.
Freetrade investment trusts
Investment trusts offer a diverse range of investment opportunities. With hundreds of options available, you can choose from trusts specializing in various sectors, geographic regions, and global markets, allowing you to tailor your portfolio to your specific investment goals.
REITs
Real Estate Investment Trusts (REITs) offer a convenient way to invest in real estate without the complexities of direct property ownership. By investing in REITs, you can gain exposure to residential or commercial properties, benefiting from potential income and property value appreciation without the hassle of managing properties yourself.
UK treasury bills
UK treasury bills offer a low-risk investment opportunity backed by the UK government. You can earn a fixed interest rate on your cash investment. However, the interest rate is determined through a tender process, so it may vary.
Freetrade deposit methods
Freetrade primarily offers the following deposit methods.
- Bank transfer
- Debit card
- Google Pay
- Apple Pay
There’s no minimum deposit for open banking verification, a £1 minimum applies for other methods. Freetrade funding processes bank transfers within 2-4 hours, Monday to Friday (excluding bank holidays).
Deposits made using Apple Pay or Google Pay are typically instant. However, freetrade business accounts are not accepted for deposits. If you use Direct Debit, cash may take 3 or more working days to become available for trading.
Freetrade withdrawal methods
Funds can be withdrawn from your Freetrade account to your linked bank account in approximately 2-3 business days, although it may take up to 5 days.
Fees and commission of Freetrade
The fees and commission of Freetrade are as follows.
Trading fees
- Commission: Free on all stocks, ETFs, investment trusts, and UK Treasury Bills.
Account fees
Freetrade charges for account fees for each account type are given below.
| Account types | Monthly fee | Annual fee |
|---|---|---|
| Basic | Free | N/A |
| Standard | £4.99 | £59.88 |
| Plus | £9.99 | £119.88 |
Additional fees
The additional fees of Freetrade are given below.
| Features | Fees |
|---|---|
| Foreign Exchange (FX) fee (USD/EUR) (Non-GBP Trades) | Basic plan:0.99%+ exchange rate Standard plan: 0.59%+ exchange rate Plus plan: 0.39% + exchange rate |
| Stamp duty on UK equity buy orders | 0.50% |
| Same-day withdrawals (Charged by banking partner) | £5 |
| Interest on uninvested cash | Basic account: 1% on up to £1,000 Standard account: 3% on up to £2,000 Plus account: 5% on up to £3,000 |
| Inactivity Fee | Free of charge |
| Deposit Fee | Free of charge |
Freetrade customer service
Freetrade customer offers multiple ways to get help, depending on your needs and account type.
For all users
- Help Hub: Find answers to common questions in their online resources.
- Community forum: Connect with other investors in the Freetrade community.
- Email support: Get personalized assistance by emailing mailto:hello@freetrade.io with your specific question.
- Social media: You can also reach out to Freetrade on social media for quick responses.
Plus plan members
- In-app chat: Access dedicated Plus Support with faster response times and extended hours (6:00 AM – 9:00 PM) through the Freetrade app. Be sure to include all relevant information for a faster resolution.
Conclusion
Freetrade offers a commission-free investment platform with a wide range of financial products, making it suitable for many investors. While it shows off user-friendliness and security, it is important to note its limitations, such as limited withdrawal options, lack of a demo account, and limited phone support.
Additionally, users of the basic plan should be aware of the relatively high Foreign Exchange (FX) fees charged for buying and selling assets denominated in different currencies. Before investing, carefully evaluate your goals, risk tolerance, and Freetrade’s specific features, including the FX fees associated with your desired account type. This will help you make informed decisions about whether Freetrade is the right investment platform for you.
Pro Tip
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