Freetrade App Review 2022: Commission Free Stock Trading

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 app review and find out if it’s the best platform to get started with investing in 2022.

Freetrade is a UK app based service which has emerged in recent years as a 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 on trades. This means that, while you would normally have to pay fees elsewhere depending on what and how much you choose to invest, Freetrade has set itself up as something of a trailblazer.

However, they’re actually not the first to offer this service. While they may be the first UK brand to ban commission on trades, 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 Freetrade. However, since Freetrade burst onto the investing scene there has been a number of other trading platforms offering commission free trading. Most notably the likes of Trading212 and Stake. So how exactly does it compare to these platforms? Does Freetrade have a fight on its hands? Read our full Freetrade review to find out.

Freetrade Review

Quick Summary

• Freetrade was initially seen as the first Robinhood UK alternative.
• Freetrade allows you to trade completely commission free on UK stocks.
• They offer fractional shares on US stocks and the number of US stocks available is growing rapidly.
• European stocks have also recently started to be introduced to the platform.
• You will pay only a small FX fee of the spot rate + 0.45% on any foreign trades.
• You can search for thousands of stock options through the app.
• However, alternative platforms such as Stake and Trading 212 let you trade in more options and both have additional desktop interfaces.
• You will be charged £4.99 per month for an ISA on the Standard Plan or £9.99 on the Plus Plan.

What is Freetrade?

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 of commission on their basic model. Many investment services, will charge you fees based on portfolio inactivity or withdrawals, for example.

At Freetrade, there are none of these charges. You are free to set up a basic account with the service from a minimum trade amount of £2.

Freetrade Free Share Referral

The Freetrade app is available for both iOS and Android, has been featured in Forbes Magazine, and continues to pick up fairly healthy TrustPilot reviews. To that end, it seems like most investors – beginners or otherwise – can expect a pretty good deal. Who doesn’t want something for nothing?

However, the fee-less feature is only the icing on the cake. There is a fair bit more to Freetrade than this, and that is of course what I am about to explore. For example – there are some fees involved, which may surprise some adopters. Let’s take a look.

How Does the Freetrade App Work?

Opening an account with Freetrade is fast and, as you’d expect, free. Download the app and set up with any necessary details. You will have a choice of a basic free stocks account, or an investment ISA service, which is available for £4.99 per month on the Standard Plan or £9.99 on the Plus Plan. Freetrade will check your identity through the details you provide. If you stumble at this hurdle, you’ll be asked to provide more details digitally. This shouldn’t be likely, but it’s not too much hassle if you have to.

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.

Where Freetrade may lack for some is in terms of flexibility and of scope. You can easily trade in stocks and ETFs, but when it comes to anything like cryptocurrency and CFDs you are going to be out of luck. That being said the platform is really aimed at those looking to trade in stocks and ETFs only. On that note, if you are specifically interested in ETFs you may want to check out our article on the best UK platform for ETFs, where Freetrade is also featured.

Investment experts using the Freetrade app are also keen to point out that there isn’t much here in the way of a helping hand beyond a solid tutorial. There are advisors available to help, but the in-depth guides and content you can find elsewhere are absent. Although again, whether or not that is an issue will come down to the individual user.

What is Freetrade Plus?

Aside from the free GIA account and the £4.99/month ISA option, Freetrade also offer Freetrade Plus. This comes at a cost of £9.99/month and allows you to choose from additional stocks which are not available to free users. 3% interest on cash holdings up to a maximum of £4,000. Limit orders and stop losses. As well as the stocks and shares ISA option included (usually £3/month).

Is Freetrade Easy to Use?

Yes. Stock trading with the Freetrade app is nice and simple. This is actually the leading benefit of using Freetrade – beyond the obvious. A lot of investors will love the fact that they can build portfolios and stocks and shares ISAs using their smartphones. There is a definite shift towards mobile investing, and while it’s been on the grow for some time, very few investment platforms have taken the leap to leave their desktop models behind completely.

While Freetrade is very easy to get into and use, it doesn’t offer you that much in the way of data and analysis. This means that more advanced investors, and those more experienced in stocks, may find the detail to be lacking.

Freetrade is simple to use, but once the opening guides are over and done with, you are on your own. That is unless you ask for help from one of the Freetrade advisors. There could be a nice balance of education as well as investment tools here. Sadly, there aren’t at this stage. That being said there is a fairly active user community where a lot of questions are covered.

Is Freetrade Completely Free for Stock Trading?

In terms of commission, yes (although there is a small spot rate + 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 or sign up to Freetrade Plus at £9.99/monthly.

As you can see from the illustration above Freetrade actively compares other services on its main site, showing that some other popular and more established investment platforms will generally charge for trades and have additional fees on top of that. However, more experienced investors will point out that you often pay for services such as these for a reason – greater account management. I am not disapproving of Freetrade by any means – however, it makes sense to try and find the app’s place in the wider market.

Freetrade Withdrawal Time

A withdrawal from Freetrade takes three to five working days. Funds can be withdrawn to your linked bank account for free as there is no withdrawal fee charged. One other consideration is that you will not be able to withdraw any funds from sold investments until they are fully settled. This takes two days from the date that the trade was executed.

Is Freetrade Safe?

Yes. Your investments of up to £85,000 are protected by the Financial Conduct Authority, or FCA.  You can trust the brand as it is fully regulated.

More About Freetrade Investment

There are a few more things you should know about Freetrade before you get started. For one thing, you will be able to deposit via bank transfer and the likes of Google Pay. Once your account is funded, you can start exploring stocks by tapping ‘discover’, and then searching around.

Freetrade Refer A Friend

If you’d like to claim a freebie, you can also refer a friend to Freetrade and get a free share. This seems to be randomised, but the brand states you could end up claiming pretty valuable stock (up to £200). You can both benefit from this, too, so make sure you have a friend who’s invested in investments, so to speak.

Best Freetrade Alternatives

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 Freetrade, it offers both investment services via mobile and via the web.

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 Freetrade in terms of functionality. On data and analysis alone, the US counterpart seems to have the upper hand.

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 obviously clear that in fact that’s not the case. The most recent update was that unfortunately the UK launch has been delayed indefinitely.

However, there are other UK alternatives to Robinhood you should consider as well as Freetrade. Especially if US stocks are your bag!

Freetrade vs Stake

Stake is an established brokerage platform which launched in the UK in 2020. Like Freetrade, the main focus is on commission free trading. What’s more, they offer the largest selection of US stocks and ETFs currently available on any UK free trading platform. Over 6,000 US stocks and ETFs in fact. Which means it’s already on a par with Robinhood in terms of stocks available and ahead of Freetrade. Stake also offer completely unlimited commission-free trading with no FX fee on any trades. Read our full Stake review to find out more.

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.

Pros

• Freetrade is 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 the current spot rate + 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.
• Freetrade is 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 £4.99/month or as part of the Freetrade Plus option at £9.99/month.

Cons

• There is very little in the way of further education once you get started. Although the opening guides are great at helping you find your feet with the service.
• There is fairly limited investment options in comparison to some competitors, although their list of available stocks is growing.
• Freetrade is 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 investors may find things a little restrictive.

Freetrade App Review: Verdict

Freetrade is a great stock trading app with a nice focus on keeping things simple and affordable. However, it falls down in some areas when compared to similar competitors, mainly in terms of stock selection and data analysis.

The app is very easy to set up and use. Freetrade is already well-loved by many people in the UK, too. Not to mention you can get a free stock on sign up and deposit.

Freetrade is certainly one of the best options for commission free stock trading. For alternative options, take a look at our Trading 212 vs Freetrade comparison to see how Freetrade stacks up against another established stock trading app which is also available to the UK market. Also don’t forget to check out Stake. Particularly if you’re only interested in investing in US stocks.

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Last update on 2023-11-13 / Affiliate links