Investing isn’t just reserved for experienced stockbrokers any more. You don’t have to be the Wolf of Wall Street, or any other kind of animal, to make money from stocks and shares. We looked previously at more passive investing options. What about options for getting involved in building your own stock portfolio? Let’s get into this Freetrade review and find out if it’s the best platform to get started with in 2020.
Freetrade is a UK service which has emerged in recent years as a new way for UK investors to grow stock portfolios. Not only is the service available via app, which means ease of use for most people in this day and age, it is also free from commission. This means that, while you would normally have to pay fees elsewhere depending on what and how much you choose to invest,
However, they’re actually not the first to offer this service. While they may be the first UK brand to ban commission outright, a popular US app called Robinhood has been dropping fees for years. However, for now, its only available to US investors.
That’s why there has been so much buzz around
Freetradehas been seen as a Robinhood UK alternative for some time. Freetradeallows you to trade completely commission free.
- They recently introduced fractional shares on US stocks and the number of US stocks available is growing rapidly.
- You will pay only a small FX fee of 0.45% on any foreign trades.
- You can search for hundreds of stock options through an easy to use mobile app.
- However, alternative platforms such as
Stakeand Trading 212let you trade in more options.
- Other services offer more in the way of support with investing guides and content
- You will be charged £3 per month for an ISA.
Freetrade is an app which has emerged in the UK as a leading name in fee free investing. This means that, to open a basic stock account, you won’t be charged a penny on their basic model. Many investment services, via app or elsewhere, will charge you fees based on portfolio inactivity or withdrawals, for example.
Freetrade Free Share
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If you sign up via our link you can get your first stock added to your portfolio completely free when you fund your account with as little as £1
However, the fee-less feature is only the icing on the cake. There is a fair bit more to
How Does the
Freetrade App Work?
Opening an account with
You can then start by depositing into your account and start trading. It is completely mobile, meaning that unlike some bigger platforms, you won’t have access to a desktop platform. However, you’ll likely find the interface and usability pretty straightforward.
Investment experts using the
Freetrade Easy to Use?
Yes. Stock trading with the
Freetrade Completely Free for Stock Trading?
In terms of commission, yes (although there is a small 0.45% FX fee on all foreign trades), providing you stick to the simple stock investing with a basic account model. If you want to go beyond this and start investing through an ISA, you’ll be asked to pay £3 a month. This is still a very competitive tariff, so it’s unlikely many people will be complaining. By the time you read this, you could well be looking to pay out for ISA management.
Yes. Your investments of up to £85,000 are protected by the Financial Conduct Authority, or FCA. You can trust the brand is it is fully regulated.
There are a few more things you should know about
It’s also worth noting that withdrawal methods are somewhat limited. There may not be any fees for you to withdraw, but you’ll only be able to withdraw via bank. This can be a slow process, which means you could be kept waiting for your money when you really need it. It’s worth bearing in mind, though if you can hang on a couple of days, you’ll have no issue.
If you’d like to claim a freebie, you can also refer a friend to
Freetrade vs Robinhood
Robinhood is a leading name in US mobile investing, which has established itself since 2013 as the main player in fee-free investments online. Unlike
The web-based version of Robinhood will give you wider access to the stock you buy and to monitor how it is performing. Advanced analytics, and up to four different order types, also put it ahead of
There are no fees for withdrawing, trading in US stock or going silent. However, some fees will apply elsewhere.
Is Robinhood Coming to the UK?
This is the big question – and the answer is not anytime soon. Following regulation approval in August 2019, Robinhood was given the green light to head to the UK. However the launch never materialised.
Robinhood UK Launch ‘Delayed Indefinitely’
We’ve been eager to see Robinhood launch in the UK. Until recently the launch was said to be ‘early 2020’. However it’s now clear that in fact that’s not the case. Unfortunately the UK launch has been delayed indefinitely.
However, there are other alternatives to Robinhood you should consider as well as
Freetrade vs Stake
Read our full Stake review to find out more or sign up directly using the link below and claim a free stock. To receive your free stock you must sign up then fund your account with the minimum investment of £50 within 24 hours.
Win $1,290.78 of Tesla Stock!
Between when Robinhood’s UK waitlist was launched and cancelled, Tesla gained US$1,290.78. Stake are making up for this lost time by giving back these gains as Tesla stock. To be in with the chance to win simply follow the link below.
Freetrade Review: Pros and Cons
Freetrade seems great on the surface – and yes, it has plenty of great perks. However, your experience may vary. Let’s break this down.
Freetradeis completely free to use in terms of commission. Based on stocks and ETFs, you won’t get charged anything for taking money away, or for going inactive.
- Although you will pay a small FX fee of 0.45% on all foreign trades.
- The user interface is refreshingly simple. It’s very easy to get into and the opening guides help to introduce you to the complex world of trading.
- The search function is nice and easy to use and understand. It’s very simple to narrow down your options, and to buy into certain shares.
- You can manage your portfolio completely on the go, via an app for either iOS or Android.
- You’ll get a free random share worth up to £200, and so will a friend, if you recommend them to the service.
Freetradeis very open and transparent on what you can and can’t do. Unlike some investment services, navigating their initial registration page – and their initial blurb – is very easy to do. This will make a big difference to beginners.
- You can open a free general investment account or an investment ISA for £3 per month.
- There is very little in the way of further education once you get started. While the opening guides are great at helping you find your feet with the service, you’re going to have a hard time developing your investment skills moving forward.
- The service has fairly limited investment options in comparison to some competitors, although their list of available stocks is growing.
Freetradeis limited when it comes to data and analysis for stocks. Its choice to lead with a simplified interface and processes may be its downfall here.
- Without a desktop service equivalent, some traders and investors are going to find things a little restrictive.
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Freetrade Review: Verdict
Freetrade is a great stock trading platform with a nice focus on keeping things simple and affordable. However, it falls down in some areas, mainly in terms of stock selection and data analysis.
The app is very easy to set up and use.
For the time being, until Robinhood arrives in the UK,
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