Summary

Freetrade is a UK-based broker that offers stocks to its clients. Although there are no CFD instruments on their platforms, clients can invest in real stocks and own fractional shares with as little as £2. 

This Freetrade review is a deep dive into all the broker’s services and features. We will explore all the details about the broker’s fees, trading platforms, stock trading features, online perception, and more. 

Available Assets

This broker provides a limited range of assets as it does not have CFD instruments. Depending on their specific plan, clients will be able to trade over 6,000+ shares from the United States, United Kingdom, and several European countries. They will also have access to 400+ ETFs to invest in. Unfortunately, customers will not be able to participate in other financial markets such as Forex, Commodities, Indices, and Cryptocurrencies. Next in our Freetrade review, we cover all the available financial assets in more detail.

Stocks

Freetrade offers up to 6,000+ stocks from various countries. However, individuals with a Basic Plan will only have access to 1,500+ stocks. The stock options available with this broker allow clients to invest in SPACs, REITs, and popular companies such as Microsoft, Apple, Tesla, and Etsy.

ETFs

Clients who prefer to speculate on the performance of a group of stocks will be able to do so with Freetrade’s 400+ ETFs available on its trading platform. Some of the ETFs displayed include Vanguard S&P 500, INVESCO NASDAQ 100, and Vanguard FTSE 1000.

Stock Trading at Freetrade

Freetrade’s asset offerings do not include any CFD instruments. This means that clients can only invest in real stocks when they open an account with this broker. There is a diverse range of shares provided, including SPACs, REITs, ETFs, and investment trusts. Our review covers all the available stock exchanges listed by this broker, its stock trading fees, and the availability of margin trading accounts for clients.

Available Stock Exchanges at Freetrade

The broker’s list of stocks is extensive including many countries such as the United States, England, Spain, Portugal, and the Netherlands. Here are all the available stock exchanges provided by this broker on their trading application.

Stock Trading Fees & Commission at Freetrade

Freetrade does not charge any commissions on stocks available via its platform. The only fee that they deduct from traders who participate in stock trading is the FX Rate, which is calculated as the Spot Rate + 0.45%. Also, they offer one free plan, the Basic Plan, and two paid subscription plan options, Standard and Plus which cost £5.99 and £11.99.

Stock Trading Leverage at Freetrade

This broker does not offer margin trading on its available stocks and ETFs. Being a long-term investment broker that deals with real stocks, they do not provide their clients with the option of holding leveraged positions on stocks.

Regulations

Freetrade was founded in the United Kingdom and operates with a regulatory license from the Financial Conduct Authority (FCA), the leading financial and investment regulatory body for brokers within the region. In this section of our review, we mention all the regulatory information regarding this broker and every other essential information about the company’s registration details.

Freetrade: Freetrade is the trading name for Freetrade Limited, a company that is a member of the London Stock Exchange. It is regulated by the Financial Conduct Authority and is located at 10 Devonshire Square, London, EC2M 4YP.

• Company Registration Number: 9797821
• FCC Registration Number: 783189

Fees and Commissions

There are two types of fees charged by the broker, trading and non-trading fees. Although they do not charge any commissions on all their available account types, users will still incur some charges, which are listed below.

Trading Fees

Some of the trading fees charged by Freetrade include FX rates, and Stamp duty charges. This part of the review will provide more detail about each of these trading costs.

FX Rate

All European and US orders with this broker will incur an FX rate which is charged as the Spot Rate + 0.45%.

Stamp Duty

Freetrade charges a stamp duty fee from traders who place buy orders on UK stocks. The stamp duty fee with this broker is 0.5%.

Non-Trading Fees

Unlike many other brokers, Freetrade does not charge deposit, withdrawal, or inactivity fees. However, their clients could pay for subscriptions and same-day withdrawals. Here are more details below.

Subscription Fees

Freetrade offers three plans to its customers, a Basic Plan, Standard Plan, and Plus Plan. Although Basic Plans are free, Standard Plans and Plus Plans will cost a monthly fee of £5.99 and £11.99 respectively.

Same-Day Withdrawals

Withdrawals with this broker typically take 2 – 3 working days. However, traders can expedite the process by requesting a same-day withdrawal which would attract a fee of £5.

Account Types

A quick review of this broker’s available account types shows three options: a General Investment Account, Stocks and Shares ISA, and Self-Invested Personal Pension. Also, it is important to state that they do not have a demo account. Each of the available accounts with this broker has its unique features, and in the section below, we cover them in detail.

General Investment Account

General Investment Accounts are available to all clients, regardless of their individual subscription plans. This account type has no investment limits and offers thousands of stocks from the US, UK, and parts of Europe. However, customers on a Basic Plan will not have access to some London-listed, US, and European shares.

Those who run a General Investment Account will pay capital gain and dividend fees on profits above their allowances. The current threshold for capital gain tax and dividend allowances is £6,000 and £1,000 respectively, above which a trader will need to pay taxes on any share transactions. This account type is commission-free. The only charge accrued by General Investment Account holders is the FX Rate.

Stocks and Shares ISA Account

A stocks and shares individual savings account (ISA) offers a long list of financial assets which includes ETFs, bonds, stocks, and futures. It also protects traders from capital gains and dividend taxes, making it a great option for clients that have a long-term investment approach. However, it is essential to note that tax treatment varies depending on the specific individual and may change under certain circumstances. Traders who have an ISA account will enjoy commission-free investing, FSCS protection, and low fees. They will also be able to own fractional shares with as little as £2 and enjoy access to a large number of US and UK stocks, ETFs, REITs, and investment trusts. The annual allowance for the present tax year is £20,000. This means that traders are allowed to fund their accounts with up to £20,000 and be exempted from paying capital gains and dividend tax should they earn a profit.

Unfortunately, this account type is not open to individuals on the Basic Plan. To have access to the Stocks and Shares ISA Account and all its benefits, a trader must subscribe to this broker’s Standard or Plus Plans which are priced at £5.99 and £11.99 per month respectively. Finally, clients are only allowed to open one Stocks and Shares ISA Account every tax year.

Self-Invested Personal Pension Plan (SIPP) Account

The SIPP account type is only available to clients on the Plus Subscription Plan, which costs £11.99 per month. This account is considered a relatively low-cost SIPP compared to many other options as it is included in the Plus Plan. The SIPP account type allows traders to keep a detailed record of their investment performances and charges by merging old pensions. It is also commission-free and affords customers of this broker the opportunity to diversify their portfolio with fractional shares available for as little as £2. Just like the Stocks and Shares ISA Account, there are no transfer-in and transfer-out fees. Traders will only be charged the FX Rate.

SIPP Accounts also allow investment in over 6,000 financial instruments, including REITs, investment trusts, ETFs, and US, UK, and European stocks. Freetrade’s SIPP account enables users to transfer Individual Personal Pensions, Stakeholder Pension Plans, SIPPs, Contract-based Workplace Pension Plans, Trust-based Workplace Pension Plans, and Free Standing Additional Voluntary Contributions. Traders can contribute up to 100% of their annual income. Subject to personal circumstances, clients with this account can also claim tax relief on the first £40,000 that they fund their account with each year. Finally, users can transfer money from their Stocks and Shares Accounts or General Investment Accounts into their SIPP Accounts.

Trading Platforms

Freetrade offers a proprietary mobile app and a web app. However, the Web app is currently undergoing Beta Testing and is only available to users who are on the Plus Subscription Plan which goes for £11.99. They do not offer popular platforms such as MetaTrader 4, MetaTrader 5, or cTrader. In this section of our Freetrade review, we examine all the features of the broker’s trading apps and enumerate a step-by-step process for creating an account and getting started with this broker.

Desktop Trading Platforms

Clients cannot open an account on the desktop. They would need to download the mobile app on an iOS or Android device to register their account and begin trading with this broker. At the moment, the Freetrade Beta Web App does not allow trading activities and can only be used to monitor trades and view charts. Customers looking to buy or sell their stocks can only do so on mobile.

Mobile Apps

The mobile app is the only available platform for trading with this broker. All prospective clients who wish to open an account will also be required to download the app to begin the registration process. Here, we review all the key features of this application and explain how to open an account with Freetrade on mobile.

User Interface

This broker’s mobile app offers an intuitive user interface. Its design is simple and it presents only features that are essential for stock trading. Placing orders and carrying out analysis is relatively seamless due to the app’s simplistic outlook and well-thought-out navigation options.

Design

The Freetrade mobile app is easy-to-use with a simple design consisting of five tabs – Portfolio, Insights, Discover, Activity, and Account. Both new and experienced traders will be able to understand how to navigate through the various segments of the app with ease.

Activity

The activity feature allows Freetrade clients to monitor everything they do on their trading platform. This includes all open and closed trades as well as deposit and withdrawal information.

Discover

With Discover, users can easily identify and place orders for their preferred financial assets on the mobile app. This feature also aggregates a client’s recently viewed instruments and lists all newly added options in a single view.

Portfolio

Portfolio is a very useful feature as it allows customers of Freetrade to monitor their progress and the performance of their assets. Here, you can have access to visualizations that summarize the price changes of your trading instruments to help you make wiser investment decisions.

Insights

Insights show clients the overall distribution of their assets. Using this feature, users of this broker can see the percentage of their portfolio that is stocks, cash, bonds, or ETFs. Insights also shows this percentage distribution based on sectors.

How to Open an Account on Freetrade Mobile App

1. Search for Freetrade on your device’s app store.
2. When you open the app, select Continue and enter your email address.
3. Next, check your email for a message from Freetrade with a link to log in.
4. Choose a four-digit passcode that will be used for future logins and transaction confirmations.
5. Enter your first name and surname as it appears on your valid government-approved ID document.
6. Fill out your date of birth.
7. Enter your postal code.
8. Select your Nationality. For UK residents, you will also be required to enter your National Insurance Number.
9. Choose your account type from the options presented.
10. After selecting your account type, you will be redirected to the Portfolio section in the mobile app.
11. Click “top up” and select from the available options to fund your account and start trading.

Payment Methods

There are several methods for deposits and withdrawals at Freetrade. They include instant bank transfers, Google Pay, and Apple Pay. Unfortunately, this broker does not accept deposits from e-money institutions or third-party accounts. In this section, we review the various options for funding and withdrawals. We also take a look at their deposit and withdrawal fees, minimum deposit and withdrawal amounts, and the average processing time for each of these available payment methods.

Deposit

Clients looking to make a deposit can only do so with instant bank transfer or via Google Pay or  Apple Pay with a debit card. They do not offer common options such as PayPal, Skrill, or Neteller. For Google and Apple Pay, traders can only fund their accounts with a debit card and not a credit card. Furthermore, unlike bank transfers, these two payment methods have a £250 lifetime limit. Traders can also set up a standing order for funding their live accounts. However, this takes longer to process. Freetrade only accepts deposits from UK bank accounts that are directly linked to the creator of a live trading account. They also do not charge a deposit fee or set a minimum deposit amount.

The different payment methods along with their processing times are listed in the table below:

Withdrawals

Withdrawals on Freetrade are usually relatively straightforward. However, to be able to withdraw their funds, a trader must have linked their bank accounts and ensured that they do not have any outstanding subscription plan payments. Clients of this broker can only withdraw to their linked bank accounts and this process typically takes between 2 – 3 working days, although in some instances it may require up to 5 working days for a withdrawal to reflect. Customers can request a same-day withdrawal, but they will be charged a fee of £5. There is no minimum withdrawal method or withdrawal fee.

Account Base Currency

Unlike most other brokers, Freetrade only offers GBP as its account base currency.

Research and Education

Our review of this broker’s educational resources shows that it comprises largely of articles covering a wide range of topics. Clients will have access to detailed write-ups on the basics of investing, creating an investment portfolio, and everything they need to know about ISAs, pensions, ETFs and investment funds. In addition to these articles, Freetrade also has a trader’s dictionary with a list of all the important trading terminologies and their definitions. Beginner and experienced traders can consistently make reference to this tool as they engage in trading with this broker.

Finally, Freetrade offers regular news, including information about upcoming IPOs, and market analysis for UK and US shares. With this resource, clients can stay up to date with the latest happenings across various industries in which they wish to invest. Unfortunately, this broker does not provide additional resources such as webinars or e-books.

Customer Services

Freetrade provides many options for its users to achieve a resolution to any challenges they may experience while using any of their trading apps. One of the options includes the Freetrade Community, a forum of retail investors where clients can post their questions and receive solutions from other individuals who may have dealt with similar issues previously. Another way customers of this broker can access customer support is by reaching out via email. General complaints can be forwarded to them by sending an email to complaints@freetrade.io. However, they also provide specific email addresses for more streamlined inquiries on their website. Freetrade has a Help Hub, a section with answers to questions that are frequently asked by clients. Finally, they provide a chat-in-app feature that enables “Plus customers” to interact with a customer service agent directly and receive a response relatively quickly compared to the earlier-mentioned alternatives. Users who do not wish to make use of any of these options can also reach out to this broker by sending them a message across their various social media pages. Freetrade has an online presence on the most popular social networks, including Facebook, Twitter, LinkedIn, and Instagram.

Online Reviews

In addition to all the sections above, our Freetrade review also surveys user comments about this broker on popular platforms such as Reddit, Quora, TrustPilot, and ForexPeaceArmy. We have carefully read through negative and positive remarks about them and put together the most recurring observations regarding their operations. In this segment, we provide a short summary of what users are saying about Freetrade across these social media and discussion sites as well as mention the overall rating of their services.

What Reddit Users Say About Freetrade

Reviews on Reddit are largely positive. Many users made reference to the broker’s simplicity as one of its main advantages over its competitors. Furthermore, there were several mentions of the availability of a wide range of stocks and fractional shares on Freetrade’s trading platforms. Also, several individuals singled out their customer service for praise, highlighting their quick response times and effective solutions.

Despite this, there were a few people who had a different experience with Freetrade’s customer service, claiming that their issues were not resolved even after making a complaint. Another common drawback pointed out by users was that they were required to pay to access certain account benefits.

What Quora Users Say About Freetrade

There aren’t a lot of comments about this broker on Quora. However, one user asserts the fact that they are a good broker, pointing to their easy-to-use platform and the presence of plenty of shares from the London and New York Stock Markets.

TrustPilot Users’ Review About Freetrade

Presently, Freetrade has received 3,006 reviews with a combined rating of 4.0 on TrustPilot, a popular business-review website. Most comments mention the intuitive interface of the broker’s mobile app and the usefulness of their market insights and other tools. They also make reference to the presence of commission-free shares and ETFs provided by this broker as another major benefit.

Unfortunately, there were also comments from disgruntled clients who had complaints about restrictions to certain opportunities due to a paywall and occasional difficulties withdrawing funds from their accounts.

ForexPeaceArmy Users’ Review About Freetrade

Sadly, unlike the above-mentioned websites, there are no reviews of this broker on ForexPeaceArmy at the moment.

Other Products and Services

The broker also offers additional products and services. At the moment, Freetrade offers Free Share, a referral program and a career listing section on their website. These services will be explained in greater detail below.

Free Share

Free Share is the broker’s referral program that rewards clients with a free stock worth between £10 to £100 for each user that joins based on their recommendation.

Freetrade Careers

Freetrade offers a career section on its website where interested individuals can check for any available job openings. Working with this broker comes with several perks, including competitive salaries, share options, flexible working arrangements, and the opportunity to play a major role in the growth of a fast-rising startup.

Is Freetrade Safe?

The broker’s safety measures are well designed to guarantee that their client’s funds are protected in the event that the company fails or they are unable to safeguard customer assets. One of these protocols is that this broker operates segregated bank accounts. This means that they do not use their trader’s funds for company business.

Freetrade also undergoes regular audits from reliable third-party companies such as Deloitte. In addition, they are regulated by the FCA, the UK’s leading financial regulatory body, and remain compliant with all FCA-stated rules. UK and US stocks purchased are subject to different safety processes. UK stocks and ETFs are held by Freetrade Nominees Limited, a non-trading company that is protected from any liabilities that the broker accumulates. These stocks are also kept in CREST, the UK’s central security depository.

For traders who participate in US stock trading, this broker ensures that all assets are held by a third-party SEC broker. All funds held in an SEC-designated account are not permitted to be used in settling debts nor considered part of the broker’s assets. Furthermore, they are part of the Financial Services Compensation Scheme (FSCS). The implication of this is that, should they go bankrupt or become unable to protect their client’s assets, customers are entitled to protection on their assets up to £85,000. Finally, Freetrade places a proportion of their trader’s funds in a notice account and monitors the balance of these accounts to ensure that regular trading activity remains unaffected.

Bottom Line

Freetrade can be considered a credible broker as it is regulated by the FCA, a top-tier regulatory agency in the UK. There are many positives to opting for this broker, including the availability of fractional shares, low fees, and commission-free trading. However, the primary drawback of this broker is that they do not offer CFD assets such as Forex, Commodities, Indices, or Cryptocurrencies. There are 6,000+ stocks and 400+ ETFs listed by them from exchanges such as NASDAQ, NYSE, LSE, OMX Helsinki, Euronext Amsterdam, and Euronext Brussels. They also provide three subscription plans – Basic, Standard, and Plus. The Basic Plan is free while the Standard and Plus Plans have monthly fees of £5.99 and £11.99. The results of our Freetrade review showed that they do not offer margin trading. This means that traders are not allowed to hold leveraged positions.

Trading and non-trading fees with this broker are relatively minimal and include FX rates, Stamp Duty, and Same-Day Withdrawals. There are also three account types – General Investment Account, Stocks and Savings ISA, and SIPP Account. Customers can only purchase stocks via the mobile app for iOS and Android. In addition, there are only three payment methods available: instant bank transfers, Google Pay, and Apple Pay.

To reach Freetrade’s customer service, clients can send an email to complaints@freetrade.io or send a message via any of their social media platforms. Overall they are a reputable broker as shown by their high rating on platforms such as TrustPilot.