Before we get into the detail of exactly what Freetrade has to offer, it is worth noting that you can claim a free share just by clicking above and depositing £1. To be fully transparent, you get a free share and so do I, but after that, you’ll have your own link where you can do exactly the same and build a portfolio of trading shares.
With that bit done, let’s start to have a look at what Freetrade actually is and why there is more to it than just a free share. This Freetrade review will be looking at what the platform has to offer, who it is suitable for, and if Freetrade is worth your time.
What is Freetrade?
Freetrade is a UK based Fintech company that was established in 2016. Since this time, the Freetrade platform has sought to open up trading to the masses. It has allowed people like you and me to trade in stocks and shares, commission-free. There are now more than 500,000 users and Freetrade has proven that it provides a great way for both novices and experts to make money and grow their wealth.
The Freetrade platform differs from the likes of Trading212 in that it tries to keep things simple. It doesn’t offer CFDs or cryptocurrencies as these are seen as complicated and, in most cases, far riskier. Instead, users of Freetrade are able to invest in UK and US stocks and shares, as well as exchange-traded funds (EFTs) and investment trusts.
What does the Freetrade platform offer?
The award-winning mobile app from Freetrade allows people to invest for as little as £2. Just £2 opens up the chance to buy shares from UK and US companies. You may think that there is little value in investing such a small amount, but this is where fractional shares come in.
Fractional shares mean that you can use whatever funds you wish to so that you can purchase part of a share. With this everyday people and investors are able to own shares in huge companies such as Apple, Google, and Tesla. This is something that was previously unobtainable by the masses.
There may be some investors who are disappointed with the lack of CFDs. The truth is though that even for seasoned investors, CFDs are extremely risky and the majority of people lose money on them. Excluding these keeps the Freetrade platform safe and more appealing for those learning the ropes.
Is the Freetrade platform safe to use?
With FinTechs appearing on a regular basis, it isn’t always easy to know which ones can be trusted. Where these often fall down is the protections that are in place for users. It is not the case that any are necessarily looking to scam anyone. It is just that they are so new that it would be nice to have a level of protection. This is where Freetrade succeeds against what other platforms have to offer. Trading shares has been opened up to everyone.
The Freetrade platform is backed by the Financial Services Compensation Scheme (FSCS). This means that the levels of protection are similar to your bank and funds are protected up to £85,000. Freetrade is also regulated by the Financial Conduct Authority (FCA).
What are the Freetrade fees and account options?
With a name such as Freetrade, the expectation would be that users are able to trade for free. This is definitely the case and, alongside the option for free shares, one of the most appealing aspects of the Freetrade platform. Beyond the free options, there are other accounts that users can take advantage of. The table below shows just what is on offer:
|Account type/Activity||Freetrade Fees|
|ISA with Plus account||Free|
|ISA with a Basic account||£3 per month|
|Freetrade Plus||£9.99 per month|
|SIPP||£9.99 per month|
|Standard bank transfer||Free|
|Forex rate||Spot rate plus 0.45%|
Here’s a closer look at just what is included:
With this option, users are able to trade commission-free. They can trade in both UK and US stocks and shares as well as EFTs, and investment funds. You can start your investment journey with as little as £2.
This Freetrade account comes with a monthly charge of £9.99. So what do you get for the monthly fee? You have access to all that is included in the basic account, but you also get to choose from a wider range of stocks and shares. Users can also earn 3% interest on any funds that are in their account each month.
Freetrade stocks and shares ISA
Anything that you make when trading stocks and shares could be subject to tax, depending on your personal circumstances. Using an ISA can help to mitigate how much tax you will need to pay. At the time of writing, you can invest up to £20,000 tax-free each year.
Freetrade also has a self-invested personal pension option for users. This comes with a monthly charge of £9.99 but is reduced to £7 for Freetrade Plus account holders. This SIPP allows you to consolidate your pensions and then continue to invest in them so that they grow. There is also 25% tax relief levied which makes this extremely attractive.
Is the Freetrade platform easy to use?
Part of this Freetrade review has to involve a look at how user-friendly the platform is. The opportunity to build a portfolio of stocks and shares is clear and, when you have the right portfolio, you can even start to earn a passive income. However, if the platform is complicated and clunky, potential users may be put off.
We please to say that the Freetrade platform is extremely easy to use. The website is eye-catching, easy to navigate, and crammed full of information. To start trading though, you’ll need to download the Freetrade app.
The app is much like the website in that it is extremely simple to use. It downloads for iOS and Android devices so regardless of your smartphone you will be able to access this.
The Freetrade app provides an instant overview of your portfolio so that you can see exactly how it is performing. There is also an easy to use search function so that you can search for shares that you may have interest in. You will even get alerts from the app letting you know what’s happening in the markets and if something is impacting your portfolio.
Is it easy to create a Freetrade account?
If you like what you’ve heard so far, and if you’re interested in claiming your free share, you’re going to need to know how to create an account. From our side, the whole process took less than two minutes. The only reason that this may take a little longer is if Freetrade struggles to confirm your identity.
The first thing you’ll need to do is click the link so that when you do sign up, you get your free share. It is worth exploring the Freetrade website for a while as it is full of useful information that makes trading easy.
The next step is to download the app. You’ll need to provide your personal details and email address and then you’re good to go. Before you see your free share, you’ll need to deposit £1 and you’ll also need to complete a form called W-8BEN (this covers your tax status in the US and is extremely simple).
How can I make deposits to my Freetrade account?
When it comes to making deposits and withdrawals, there are three options available to users. These are:
- Bank transfer
- Apple Pay
- Google Pay
With Apple and Google Pay, you can deposit as much as £250. With a bank transfer, you are able to deposit as much as you please.
Should I sign up with Freetrade?
If you have an interest in making money by investing in stocks and shares then Freetrade is probably a great option. This is especially the case if you have perhaps avoided it before as you thought investing was too expensive to get into. The fractional shares and the low investment level of £2 mean that the usual barriers to investing and trading remove.
Of course, when it comes to stocks and shares the value of investments can go down as well as up. Potential users need to ensure that they invest with a budget that is affordable to them.
We believe that Freetrade is a fantastic platform and one that has allowed us to grow a portfolio. Freetrade aims to make investing “simple, beautiful, and free”. In our mind, Freetrade certainly