Freetrade Review 2021

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Freetrade Facts & Figures

Freetrade offers an exclusive mobile app for trading in shares and ETFs with a strong online community.

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
InstrumentsStocks, ETFs
Demo AccountNo
Min. Deposit$0
Payment MethodsApple Pay, Wire Transfer
Min. Trade£2
Regulated ByFCA
MetaTrader 4No
MetaTrader 5No
cTraderNo
STP AccountNo
ECN AccountNo
DMA AccountNo
Mobile AppsYes
Margin TradingNo
Auto TradingNo
Social TradingNo
Copy TradingNo
Trade SignalsNo
Islamic AccountNo
Risk Warning – Your capital is at risk

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 300,000. 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.

Benefits

Drawbacks

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.

Accepted Countries

Freetrade only accepts traders from United Kingdom, Germany, Sweden, Ireland, Netherlands, France.

Alternatives to Freetrade

If you are looking for alternatives to Freetrade we have compiled a list of the top 5 brokers that are similar to Freetrade below. This list of brokers like Freetrade is in order of similarity and only includes companies that accept traders from your location.

  1. M1 Finance – M1 Finance offers customizable and automated trading services for US investors.
  2. Webull – Webull offers a leading online stock trading app with low fees and generous bonuses.
  3. Gemini – Gemini is a leading crypto trading exchange with low fees and a long list of altcoins.
  4. Binance – Binance is one of the leading online crypto exchanges offering Bitcoin.
  5. EagleFX – EagleFX is a popular trading broker offering forex, stocks, cryptos & commodities.

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.

Freetrade offers an exclusive mobile app for trading in shares and ETFs with a strong online community.

Freetrade vs Other Brokers

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