We use cookies to allow us and selected partners to improve your experience and our advertising. By continuing to browse you consent to our use of cookies. You can understand more and change your cookies preferences here.

Freetrade investment platform review

We analyse the charges levied by Freetrade and ask its customers to rate it for service, tools, value for money and more

In this article
What is Freetrade? Is Freetrade any good? What do customers say about Freetrade? What are Freetrade’s charges? Annual charges
How much will I pay to invest? Who is Freetrade good for? Who is Freetrade expensive for? What accounts and services does Freetrade offer? Is your money safe with Freetrade?

What is Freetrade?

Freetrade is a smartphone-app-based investment platform for trading shares, exchange-traded funds (ETFs) and investment trusts.

It offers commission-free trading, with no transaction fees, and no platform fees for a general investment account.

Freetrade is based in the UK and its app was launched in October 2018.

Is Freetrade any good?

Which? members can exclusively read the results of our unique customer satisfaction survey.

Members can log in to read our analysis. If you're not already a member, join Which? and get full access to these results and all our reviews.

 

How we rate investment platforms

 

Which?'s rating for customer satisfaction is based on feedback from real customers.

We ask investors to rate their current platform for the quality of its online tools and smartphone app, customer service, and information on investment opportunities and performance. We also ask whether it meets their needs, represents value for money and whether they'd recommend it to someone else.

How do we pick Which? Recommended Providers?

A platform must allow investors to pick their own investments from an extensive list.

It will have received at least a 70% customer rating, and not received a rating below three stars on any of the underlying criteria, such as customer service, investment information or the quality of its online tools.

It also mustn't be in the top four platforms for charges, based on our fee analysis.

What do customers say about Freetrade?

We’ve heard from investors who use Freetrade and this is what some of them had to say:

  • 'A really user-friendly app with great user interface/user experience design'
  • 'Very easy to use for someone who doesn’t have much experience in stocks'
  • 'Very low fees'

What are Freetrade’s charges?

Annual charges

  • General investment accounts are free
  • £3 a month (£36 a year) for stocks and shares Isa
  • £9.99 a month (£119.88 a year) for self-invested pension plan (Sipp) or £7 if a Freetrade Plus member
  • £9.99 a month (£119.88 a year) for Freetrade Plus

Trading charges

  • No charge for buying and selling assets
  • 0.45% currency conversion surcharge
  • No charge for transferring in or out

How much will I pay to invest?

We’ve estimated the cost of investing with Freetrade over the course of a year, in a stocks and shares Isa. This applies to both funds and shares.

Costs will vary depending on how much you invest. All assume you make four purchases and four sales each year, spread out over different months.

Amount invested Annual cost
£5,000 Logged out detail
£10,000 Logged out detail
£25,000 Logged out detail
£50,000 Logged out detail
£100,000 Logged out detail
£250,000 Logged out detail
£500,000 Logged out detail
£1m Logged out detail

Source: Analysis by Which? Money correct as of April 2022

Read our comparison of investment platform charges to see how much investing with Freetrade costs for a range of portfolios.

Who is Freetrade good for?

The absence of transaction and platform fees makes Freetrade a good option if you can recreate your current portfolio with it.

This is particularly the case for investors with large portfolios, who can save hundreds or thousands of pounds compared to more established DIY investment platforms.

It may also suit those who frequently trade shares – though bear in mind the selection of shares is far more limited, and the tools are more basic.

Who is Freetrade expensive for?

Freetrade’s £3 a month Isa charge means that, for portfolios of £10,000 or less, you’d be better off with DIY platforms such as Vanguard, Charles Stanley Direct, Fidelity, Close Brothers Asset Management or HSBC

Given the limited selection of investments offered by Freetrade, it’s important to consider your investment goals, and whether switching to save on transaction and platform fees is worth compromising your strategy.

You’ll also need to be comfortable managing your investment by smartphone app.

What accounts and services does Freetrade offer?

The information below gives an at-a-glance view of the key things that the accounts and services Freetrade offers.  

  • General investment account – can hold different types of investments but doesn't give tax-free benefits like pensions and Isas.
  • Sipp – a pension where you have complete control over the investments you put your savings into.
  • Stocks and shares Isa – a tax-free account that allows you to put your money in a range of investments.
  • Savings account – with Freetrade Plus (costing £9.99 a month) you can earn 3% interest on cash up to a maximum deposit of £4,000.

What can you invest in with Freetrade?

  • Over 6,000 stocks, as well as exchange-traded funds and investment trusts and fractional shares 

What tools and resources does Freetrade offer?

  • Market analysis
  • Guides
  • Stock picks

 

Is your money safe with Freetrade?

If Freetrade went out of business, you would be compensated by the Financial Services Compensation Scheme (FSCS). 

The FSCS will cover up to £85,000 of investments per person, per platform. You can claim free of charge online: there’s no reason to use a claims management company. 

You won’t be compensated for investments falling in value, or if a company in which you hold shares goes bust, unless this poor performance resulted from bad advice given by a regulated Independent Financial Advisor that has since gone bust.  

 

×