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,
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 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 andTrading 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
Get a FREE STOCK worth up to £200!
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 £50
(*when you invest, your capital is at risk)
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.
Where
Investment experts using the
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
While
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.
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 Refer A Friend
If you’d like to claim a freebie, you can also refer a friend to
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
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 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 vs Stake
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.
Get Another FREE STOCK Worth up to £100!
(*when you invest, your capital is at risk)
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.
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