Freetrade Review 2024

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Written By
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Written By
Tobias Robinson
Tobias is a partner at DayTrading.com, director of a UK limited company and active trader. He has over 25 years of experience in the financial industry and contributed via CySec to the regulatory response to digital options and CFD trading in Europe. Toby’s expertise and dedication to financial education make him a trusted voice in the industry, including a BBC investigation into digital options.
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Fact Checked By
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Fact Checked By
William Berg
William contributes to several investment websites, leveraging his experience as a consultant for IPOs in the Nordic market and background providing localization for forex trading software. William has worked as a writer and fact-checker for a long row of financial publications.
Updated

3.5 / 5
Freetrade is #80 in our broker rankings.

Freetrade provides a simple and affordable way for casual investors to build a diverse portfolio of 6000+ US, UK and European stocks with zero commissions.

- Tobias Robinson, Reviewer

Freetrade is a London-headquartered investing platform that offers zero-commission trading on thousands of UK, European and US stocks and ETFs through a beginner-friendly platform. Open a standard investment account, a self-invested pension or a stocks and shares ISA and start building a portfolio from as little as £2.

$0
Own
Stocks, ETFs
-
Wire Transfer, Apple Pay

Stock Trading

Trade 6000+ US and UK stocks and hundreds of ETFs and funds with zero commissions and low fees via an easy-to-use proprietary trading app. More than a million users trust Freetrade for stock investing.

Awards

  • Best Online Trading Platform 2020 - British Bank Awards
  • Best Share Trading Platform 2019 - British Bank Awards
  • People’s Choice 2019 - Good Money Guide
  • Best New Investment Service 2019 - Consumer Investment Awards

✓ Pros

  • FCA-regulated brand with FSCS cover for investors
  • Thousands of US and UK stocks and hundreds of ETFs to choose from
  • Very competitive pricing vs competitors with low fees and zero commissions
  • Earn interest on uninvested cash with competitive rates
  • Transfer/move ISAs from other accounts
  • News and blog feed updated regularly
  • Built-in customer support via live chat
  • Fast revenue withdrawals
  • Dividends on stocks

✗ Cons

  • Competitors have larger selection of assets
  • Trading platform lacks deep analytical tools
  • Less suitable for active, high-volume traders
  • Many countries not accepted
  • No leveraged trading
  • No demo account

Freetrade is a UK-based fintech offering low-cost trading on shares and ETFs. With an intuitive mobile app and stock investing from £2, the broker has a lot to offer. Our review explains how to use the mobile app, deposits and withdrawals, along with general investing and ISA accounts.

Who Are Freetrade?

Freetrade was established in 2016 after securing investment through Crowdcube. The brokerage is headquartered in London.

The company founders aim to make owning stocks easy and affordable. Today, its number of users exceeds 1 million. And while their mobile investing services are predominantly available in the UK, the broker has a roadmap with plans to expand into Europe.

The firm is a member of the London Stock Exchange and is regulated by the Financial Conduct Authority (FCA). This is a highly reputable regulator and gives the broker a strong trust rating.

Trading Platform

The broker’s bespoke trading platform was developed in-house with simple design features, perfect for investors starting out. The trading terminal is currently only available on a mobile app, downloadable free of charge to iOS and Android devices. The platform’s intuitive dashboard has been designed with the user in mind. However, experienced traders may be disappointed by the lack of comprehensive analysis tools typically found on desktop trading solutions.

Features include:

Freetrade mobile trading app
Freetrade IO mobile app

Assets

Freetrade offers clients trading opportunities in the following markets:

Fractional shares are also available on US stocks so traders can specify how much cash they want to invest versus how many shares they want to buy. See the broker’s website for a full list of stocks.

The broker is focused on stocks and ETFs, so users looking to invest in cryptos, such as Bitcoin, forex, commodities or binary options will need to look elsewhere.

Freetrade Invest Platform
Freetrade investing assets

Trading Fees

Freetrade is an affordable online broker. It’s free to open a share dealing account with zero commissions. There are also no additional charges, such as fees levied on dormant accounts. The only cost to be aware of is the spot charge + 0.45% FX rate. This means Freetrade is a low-cost provider vs alternatives like Revolut, Hargreaves Lansdown, Vanguard, Robinhood, eToro and Trading212.

Note UK investors will need to comply with tax regulations, such as capital gains requirements, depending on investing activity. Visit the broker’s website for more information on tax rules and statements.

Leverage

Freetrade does not offer margin trading accounts. For clients wanting leveraged trading on stocks and shares, this broker is not the right option. The company is more focused on protecting clients from risk. Note, most European and UK regulated brokers offer leverage up to 1:30.

Payments

Deposits

Top-ups are only accepted in GBP and there is no minimum payment requirement. With that said, the minimum order size is £2. The broker offers a couple of online payment solutions with varying timelines:

The brokerage could expand its range of payment solutions in line with other providers.

Withdrawals

Freetrade does not typically charge a fee for withdrawals, however, same-day requests incur a £5 fee. Payments are usually processed in 3-5 days. Note, investments are subject to a settlement time before a withdrawal is available. How long it takes to settle an order varies, but typically takes 2-3 working days. Sell orders are available as unsettled cash in your Freetrade account before this.

Demo Account

The broker does not currently provide a free demo account to prospective investors. This is a drawback as a practice account is offered by many competitors. With that said, Freetrade argues that since fractional shares are available from £2, a demo account is not really needed. Still, this review would have liked to see a free simulator so users can test out the broker’s products and services before opening a real account.

Freetrade Bonuses

At the time of writing, Freetrade does not offer any deals for new clients, this includes no deposit bonuses. With that said, a £200 referral scheme is available for existing clients. Traders can pick up a share with a value up to £200 for referring new users to the website.

Regulation

As a UK corporation, Freetrade is licensed by the Financial Conduct Authority (FCA), meaning the broker follows established regulatory practices. As a result, investors benefit from a compensation fund should the firm go under and legal recourse should the company act inappropriately.

Additional Features

Freetrade offers an Invest Hub with educational tools alongside a supporting YouTube channel. A community forum exists with trading insights that also answers common questions. Additionally, clients benefit from an IPO calendar, a newsletter, and articles explaining a range of topics, from penny stocks and exchange rates to guidance on finding the best stocks to purchase.

Freetrader IPO market calendar
Freetrade IPO calendar

Trading Accounts

The broker offers four different account types:

Currently, accounts can only be opened in the UK and selected countries in Europe. Investors will need to submit their NI number and bank account details for digital verification. The minimum age to open a Freetrade account is 18.

Trading Hours

Freetrade follows standard trading hours. Stock markets are typically open 24/5, Monday to Friday. The mobile app is also available for deposits and withdrawals, alongside general account management over the weekend. Note that queued orders placed outside of opening hours will be executed the following day, in line with security protocols.

Customer Support

You can contact the broker’s customer support team via the following channels:

Note, there is no telephone helpline number.

Security

Freetrade complies with FCA licensing guidelines including FSCS investment protection for customers up to £85,000 and the segregation of client funds. The app offers strong user security with additional authentication at the login stage, including PIN protection and face recognition. All company processes are also audited by an external third party.

Freetrade Verdict

Freetrade offers straightforward access to stocks and shares via a user-friendly mobile app. ISA accounts and pension saving solutions are also available. And what the broker lacks in desktop analytical tools it makes up for with low fees and built-in customer support. Still new, Freetrade is a good broker that has seen significant growth and we’re excited to see what the company will do next.

Top 3 Alternatives to Freetrade

Compare Freetrade with the top 3 similar brokers that accept traders from your location.

  1. Interactive Brokers – Interactive Brokers (IBKR) is a premier brokerage, providing access to 150 markets in 33 countries, along with a suite of comprehensive investment services. With over 40 years of experience, this Nasdaq-listed firm adheres to stringent regulations by the SEC, FCA, CIRO, and SFC, amongst others, and is one of the most trusted brokers for trading around the globe.

  2. IG – Founded in 1974, IG is part of IG Group Holdings Plc, a publicly traded (LSE: IGG) brokerage. The brand-US offers spread betting, CFD and forex trading across an almost unrivalled selection of 17,000+ markets, with a range of user-friendly platforms and investing apps. For 50 years, IG has maintained its position as an industry leader, excelling in all key areas for traders.

    Forex trading involves risk. Losses can exceed deposits.
  3. eToro USA – eToro is a social investing platform that offers short-term and long-term trading on stocks, ETFs, options and crypto. The broker is well-known for its user-friendly community-centred platform and competitive fees. With FINRA and SIPC oversight and millions of users across the world, eToro is still one of the most respected brands in the industry. eToro securities trading is offered by eToro USA Securities, Inc.

    https://www.daytrading.com/ is not an affiliate and may be compensated if you access certain products or services offered by the MSB and/or the BD.

Freetrade Comparison Table

Compare Freetrade With Similar Brokers
Freetrade Interactive Brokers IG eToro USA
Rating 3.5 4.3 4.4 4.1
Markets Stocks, ETFs Stocks, Options, Futures, Forex, Funds, Bonds, ETFs, Mutual Funds, CFDs, Cryptocurrencies CFDs, Forex, Stocks, Indices, Commodities, ETFs, Futures, Options, Crypto, Spread Betting Stocks, Options, ETFs, Crypto
Demo Account No Yes Yes Yes
Minimum Deposit $0 $0 $0 $10
Minimum Trade £2 $100 0.01 Lots $10
Regulators FCA FCA, SEC, FINRA, CFTC, CBI, CIRO, SFC, MAS, MNB, FINMA FCA, ASIC, NFA, CFTC, DFSA, BaFin, MAS, FSCA, FINMA SEC, FINRA
Bonus Invest $100 and get $10
Education No Yes Yes Yes
Platforms Own Trader Workstation (TWS), IBKR Desktop, GlobalTrader, Mobile, Client Portal, AlgoTrader, OmniTrader, eSignal, TradingCentral Web, ProRealTime, L2 Dealer, MT4, AutoChartist, TradingCentral eToro Trading Platform & CopyTrader
Leverage 1:50 1:30 (Retail), 1:250 (Pro)
Payment Methods 2 6 6 4
Visit Visit Visit Visit
Review Interactive Brokers
Review
IG
Review
eToro USA
Review

Compare Trading Instruments

Compare the markets and instruments offered by Freetrade and its competitors. Please note, some markets may only be available via CFDs or other derivatives.

Compare Freetrade Trading Instruments
Freetrade Interactive Brokers IG eToro USA
CFD No Yes Yes No
Forex No Yes Yes No
Stocks Yes Yes Yes Yes
Commodities No Yes Yes No
Oil No No Yes No
Gold No Yes Yes No
Copper No No Yes No
Silver No No Yes No
Corn No No No No
Crypto No Yes Yes Yes
Futures No Yes Yes No
Options No Yes Yes Yes
ETFs No Yes Yes Yes
Bonds No Yes Yes No
Warrants No Yes Yes No
Spreadbetting No No Yes No
Volatility Index No No Yes Yes

Freetrade vs Other Brokers

Compare Freetrade with any other broker by selecting the other broker below.

 

The most popular Freetrade comparisons:

  1. Freetrade vs InvestEngine
  2. CMC Markets vs Freetrade

Customer Reviews

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Freetrade is a London-headquartered investing platform that offers zero-commission trading on thousands of UK, European and US stocks and ETFs through a beginner-friendly platform. Open a standard investment account, a self-invested pension or a stocks and shares ISA and start building a portfolio from as little as £2.

FAQ

Who are Freetrade and how do I invest?

Freetrade is a UK-based stockbroker offering hundreds of shares and ETFs. Just £2 is needed to start investing and the firm offers a free mobile app with integrated support.

How does Freetrade make money?

The firm makes money through its monthly subscription fees. Charges vary depending on the account type, but range from £3 a month with the stocks and shares ISA up to £9.99 a month with the Freetrade SIPP account.

Is Freetrade a safe and legit app?

Yes, Freetrade offers a good mobile app with zero commissions and multiple security features, as well as FCA regulation. User reviews indicate the broker is respected and trustworthy.

Do you get dividends on Freetrade?

Some Freetrade listed stocks and shares companies offer monthly or yearly dividends with funds paid directly into trading accounts. The size of dividends will depend on company performance and the level of investment.

Why was my Freetrade buy order rejected? 

Your Freetrade order may be rejected due to several reasons; no valid market quotes or the valuation of the order wasn’t high enough to cover the cost of buying the shares. Note, pricing is subject to a 15-minute market delay.

Do you own the shares on Freetrade?

Depending on whether you buy fractional shares or standard shares, you will own a stake in the company.  You can buy and sell your shares through the Freetrade mobile app.

Can I transfer my Freetrade shares between the General Investment Account and ISA?

You cannot currently transfer your shares via Freetrade accounts. However, for cash transfers, contact the stockbroker through the built-in chat support.