Stock trading is getting easier and easier thanks to online platforms and apps. People in the UK are now able to trade stocks with their smartphones and tablets like never before – however, what can put some people off is the presence of fees. If you want to trade for free, however, there are plenty of options opening up. Two strong examples being
In the US, fee free stock investing has grown quickly with the likes of Robinhood. In the UK, meanwhile, we’re now seeing a similar boom. Stock trading apps such as
Get Started with up to £100 in FREE STOCKS!
Freetrade vs Trading 212
In this comparison, I’m going to take a look at
Freetradeand Trading 212allow you to start trading stocks for free, without commission. Trading 212offers more markets and stocks overall than Freetrade. Freetradewill charge a small FX fee (0.45%) on any foreign currency stocks you trade.
- Fractional shares are available with both
Freetradeand Trading 212.
- Both platforms are very easy to get started with and the apps are straightforward to use.
Freetradeis ideal for beginners, whereas Trading 212is aimed at slightly more advanced users. Trading 212also offers crypto and CFD trading where Freetradedeals exclusively in Stocks and Funds.
What is Commission Free Investing?
Online trading is nothing new. However, on the whole, prior to free trading platforms, you could expect to pay up to £12 with each stock transaction. Unless you’re looking at making big returns with a great deal of confidence, that is going to add up to be pretty cost-ineffective. Therefore, many people just getting started in UK stocks – or even US stocks – are looking into commission free investing.
Fee Free investing allows you to make stock trading decisions without having to pay extra costs to do so. As mentioned, there are a few investing apps out there which let you take advantage of this. However, what you will need to keep in mind is the fact that most commission free investment systems will ask you to pay subscription fees or some sort of FX fees. Therefore, you’re going to need to weigh up the costs and the benefits.
Which is the Best Fee Free Trading App?
The best fee free trading apps are those which offer great value. To me, it needs to be genuine value. The best investment apps might give you tons of support and lots of stock options, but ultimately, if it’s going to cost you dearly, is it really worth it?
Right now, there might not be any one best trading app that’s free from fees. The best mobile investment apps without fees and costs are, for my money, easy to use – and which offer a wide array of options. If a stock trading app is worth paying for, it needs to offer genuine value.
That’s why I want to take a closer look at
Freetrade is a free stock trading app based platform – funnily enough – that lets you trade in UK stocks and US stocks alike. It’s a simple, streamlined app with an appealing interface, ideal for those who want to get into trading stocks, but who might not have all the know-how at their disposal. Anything you invest is also protected by the FSCS, which means any money you make up to £85,000 is safe.
Freetrade Really Free?
Fees will start applying if you trade in stocks from other countries. There’s a 0.45% FX fee that applies here. Some might think this goes against the idea of a ‘
Freetrade Good for Beginners?
The app interface is pretty fast and breezy. You simply cycle through available UK stocks and US stocks, select how much you want to buy, and start trading. One criticism I would have is that the data available within the app for each stock isn’t as detailed as you get with
The fact is, there are stock market apps out there which go into an incredible amount of detail. At the time of writing, while
- It comes with proper packaging
- Easy to read text
- Graham, Benjamin (Author)
- English (Publication Language)
Freetrade Make Money?
Whether or not that £4.99 per month represents good value for money will come down to the size of your portfolio. If you are going to be liable for significant tax costs on a general investment account portfolio, then £4.99 per month to put your account in a tax free wrapper will be money well spent.
If you are interested in learning more about Freetrade, please read my detailed review on the platform.
Trading 212 is another stock trading platform which lets you trade for free. That is, up to a point!
What’s most appealing about
Sign Up to
Trading 212 for a Free Stock up to £100!
If you sign up to
Use the Promo code “PFF”.
Trading 212 Really Free?
Various reviewers and experts online seem to be at odds on what you can and can’t pay into the platform. Straight from the horse’s mouth, you can pay in from a minimum of £1, or EUR or USD equivalent. This applies to the basic ‘Invest’ platform. The deposits for CFD accounts start at £10, while you’ll need to put at least £1 into ISAs here – and that’s in GBP only.
There are no withdrawal fees to expect here, either. Therefore, you’re likely wondering what the catch is!
Trading 212 Good for Beginners?
In some ways,
Trading 212 Make Money?
What’s refreshing about
Now that we’ve looked at
When Will Trading 212 Allow New Accounts?
As of April 2023, Trading212 is accepting new account signups.
When investing, your capital is at risk.
Freetrade vs Trading 212: Pros and Cons
Freetrade Freetradeis, for the most part, absolutely free. Therefore, you can start depositing and trading from at least £2.
- However, you will expect to pay an FX fee of 0.45% on anything you trade in outside the UK.
- The app itself is really easy to get into and use. Therefore, it is likely to appeal to people who are new to investing and trading.
- Other platforms offer better data and analysis.
Freetradeoffers a nice stocks and shares ISA option, which is likely to be worthwhile if you know what you’re doing, and t makes sense to pay £4.99 per month for the Standard option.
Trading 212 Trading 212offers a little more in the way of functionality over Freetrade, as well as a larger set of assets, on the whole. Trading 212, however, at least in its app interface, is also rather lax in terms of the data that it offers users. Trading 212is very flexible and is also really easy to set up and get started with. Trading 212is, in the long run, going to appeal to more experienced traders. It’s a little more complex to digest and offers a larger stock selection
Trading 212you also have the additional option of CFD and Crypto trading.
Freetrade vs Trading 212: Verdict
In the battle between
Disclaimer: This article should not be construed as investment advice. Investments can fall and rise. Capital at risk.
by Jon Craig
I am the creator of Project Financially Free and I started this journey to both educate myself and share my insights on personal finance. I’m passionate about financial literacy and I invite you to join me on this transformative path. See more.
Last update on 2024-02-13 / Affiliate links