For this review we are taking a look at Freetrade, a fintech UK based start-up, regulated by the FCA (UK Financial Conduct Authority). This means it’s considered safe as the FCA will protect your investment up to £70K, in the event they the broker goes bust.
Pros and Cons
Freetrade provides free stock and ETF trading, and opening an account is simple, fully digital and fast. The mobile trading platform is well-designed and user-friendly, even for people with no previous trading history.
With Freetrade, you can only trade stocks and ETFs, and its products are limited to the US and UK stocks. Research options cover basic charts, that are ideal for beginners. Debit cards are available only for deposits, but the easiest way is to do a bank transfer which links directly to your online bank account.
One thing I really like is that there is no inactivity fees or withdrawal fees that you will find with most other brokers. We rank fee levels as low, average or high based on how they compare to other trading platforms.
So let's go over some basic terms related to broker fees. What you need to keep an eye on are trading fees and non-trading fees.
Trading fees occur when you trade. These can be commissions, spreads, and financing rates
Non-trading fees include charges not directly related to trading, like withdrawal fees or inactivity charges.
In the sections below, you will find the most relevant fees of Freetrade for each asset category. i.e, in the case of stock investing the most important fees are commissions. This selection is based on objective factors such as products offered, client profile, fee structure, etc. See a more detailed rundown of their trades to have a clear overview of Freetrade, let's start with the trading charges. At Freetrade, you can trade stocks and ETFs for free.
Freetrade has low non-trading fees. It doesn't charge an inactivity fee. At the time of the review, there was no account fee if you choose the basic account, but if you choose Freetrade Plus, which provides more stocks, limit options and priority customer service, there is a £9.99 monthly charge. ISA services within Freetrade Basic still have a £3 monthly charge. A withdrawal fee is charged only if you choose same-day withdrawal. In this case, there is a £5 charge.
You can open an account here and also receive a free share worth up to £200. Just click below to get started
Account opening for us was easy, and our free share was worth £23. let us know you get one worth more!
Overall we have given Freetrade a 4.5/5 as its perfect if you’re new to online trading.