Freetrade Review 2025: Is This Commission-Free Investing App Worth Using?

In recent years, commission-free investment platforms have revolutionized the retail investing landscape, making stock market participation more accessible than ever before. Among these platforms, Freetrade has emerged as a popular choice for UK investors seeking a straightforward, low-cost entry into stock market investing. Founded in 2016 and launched in 2018, Freetrade offers commission-free trading of stocks, ETFs, and investment trusts through an intuitive mobile app. But in a market with increasing competition from both established brokers and fintech startups, many potential users wonder whether Freetrade delivers genuine value and if its simplified approach suits their investment needs. This comprehensive review examines Freetrade's features, fee structure, investment options, user experience, and overall value proposition to help you determine if this commission-free platform deserves a place in your investment strategy.

What is Freetrade?

Freetrade is a UK-based investment platform that offers commission-free trading through a mobile-first approach. Founded by Adam Dodds in 2016, the company launched its app to the public in 2018 after successful crowdfunding rounds on Crowdcube. Freetrade operates as an FCA-regulated broker and offers stocks, ETFs, and investment trusts from UK, US, and European markets.

The platform distinguishes itself with a simplified approach to investing, focusing on making the stock market accessible to beginners while eliminating traditional barriers such as high commissions, complex interfaces, and minimum investment requirements. Unlike some competitors that generate revenue through complex fee structures or payment for order flow, Freetrade's business model centers on subscription plans, foreign exchange fees, and interest on cash balances.

Freetrade offers both a free basic account and premium subscription tiers (Plus and Alpha) that provide additional features such as ISA accounts, wider investment selections, and enhanced interest rates on uninvested cash.

Account Types and Fee Structure

Freetrade offers several account types and subscription tiers with varying fees and features:

Account Types

• General Investment Account (GIA): Standard taxable investment account
• Individual Savings Account (ISA): Tax-efficient account with £20,000 annual allowance
• Self-Invested Personal Pension (SIPP): Tax-advantaged retirement account

Subscription Tiers

• Basic (Free):
  • Access to General Investment Account
  • Commission-free trades for standard instruments
  • Fractional shares for US stocks
  • Basic selection of stocks and ETFs
  • 0.45% foreign exchange fee
• Plus (£9.99/month):
  • Everything in Basic, plus:
  • Stocks and Shares ISA (no additional fee)
  • Wider investment selection
  • 3% interest on uninvested cash up to £2,000
  • Priority customer service
  • 0.45% foreign exchange fee
• Alpha (£19.99/month):
  • Everything in Plus, plus:
  • SIPP account (additional SIPP fee of £9.99/month)
  • Full investment universe including all available stocks
  • 4% interest on uninvested cash up to £3,000
  • Reduced 0.15% foreign exchange fee
  • Priority customer service and feature access

Other Fees

• Commission: £0 on all trades
• Foreign Exchange Fee: 0.45% for Basic and Plus, 0.15% for Alpha on all trades in non-GBP securities
• Stamp Duty: 0.5% on UK stock purchases (collected by HMRC, not Freetrade)
• SIPP Fee: £9.99/month (in addition to Alpha subscription)
• US Withholding Tax: 15-30% on US dividends (not a Freetrade fee, but applicable to US investments)
• Account Transfers: No fee for transferring to Freetrade; £25 per investment line when transferring out

Freetrade's fee structure is relatively transparent, with the subscription model making costs predictable for regular investors. However, the foreign exchange fee is a significant consideration for those focusing on US or European stocks, particularly for the Basic and Plus tiers.

Investment Options and Asset Coverage

Freetrade offers a range of investment options, though the breadth of available instruments varies by subscription tier:

UK Investments

• FTSE 100 Stocks: All major UK blue-chip companies
• FTSE 250 and AIM: Mid-cap and growth stocks (wider selection on Plus and full coverage on Alpha)
• UK ETFs: Range of index funds covering various sectors and strategies
• Investment Trusts: Popular UK investment trusts

US Investments

• Major US Stocks: Large-cap stocks from NYSE and NASDAQ
• Growth Stocks: Popular tech and growth companies
• Fractional Shares: Ability to buy partial shares of US stocks
• US ETFs: Major index ETFs and sector funds

European Investments

• European Stocks: Selection of major European companies
• European ETFs: Index funds tracking European indices

Limitations and Exclusions

• No Derivatives: No options, futures, or CFDs available
• No Bonds: Limited fixed income options beyond bond ETFs
• No Cryptocurrencies: No direct crypto trading (though crypto ETPs available on Alpha)
• No Mutual Funds: Focus on stocks, ETFs, and investment trusts only
• Tier Restrictions: Approximately 1,000 instruments on Basic, 4,000+ on Plus, and 6,000+ on Alpha

Freetrade's investment universe is suitable for most retail investors focusing on long-term investing in major stocks and ETFs. However, active traders seeking specific small-cap stocks, international markets beyond the US and Europe, or alternative asset classes may find the selection limiting, even on the Alpha tier.

User Experience and Platform Features

Freetrade's platform is designed with simplicity and ease of use as primary considerations:

Mobile App Experience

• Interface Design: Clean, minimalist design focused on ease of use
• Navigation: Simple menu structure with intuitive organization
• Account Dashboard: Clear overview of portfolio value, holdings, and performance
• Search Functionality: Basic search with filters for market, sector, and instrument type
• Stock Pages: Essential company information, price charts, key statistics, and news
• Order Placement: Straightforward buying and selling process
• Watchlists: Ability to create custom watchlists for monitoring potential investments

Web Platform

• Functionality: Similar capabilities to the mobile app with larger screen optimization
• Portfolio View: More detailed breakdown of holdings and performance
• Research Tools: Basic information similar to mobile app
• Account Management: Deposit, withdrawal, and settings management

Trading Functionality

• Order Types: Basic market orders only (no limit, stop, or advanced orders)
• Fractional Shares: Available for US stocks, enabling investment with small amounts
• Trading Hours: UK market hours with after-hours execution for US stocks
• Dividend Handling: Automatic credit to account with notification
• Corporate Actions: Automatic processing of splits, mergers, etc.

Research and Educational Content

• Company Information: Basic overview, key statistics, and recent performance
• News Integration: Limited news feed for holdings and watchlist stocks
• Educational Resources: Blog articles and guides for beginners
• Financial Data: Limited fundamental data compared to specialized research platforms
• Technical Analysis: Basic price charts without advanced indicators or drawing tools

Freetrade's platform prioritizes simplicity over advanced features, making it well-suited for beginners and long-term investors who don't require sophisticated trading tools or extensive research capabilities. The absence of advanced order types and comprehensive analytical tools may be limiting for more experienced investors or active traders.

Security and Regulation

Security and regulatory compliance are critical considerations for any investment platform:

Regulatory Oversight

• FCA Regulation: Authorized and regulated by the UK Financial Conduct Authority (FRN: 783189)
• Client Money Rules: Adherence to strict FCA client money rules for segregation of client funds
• Reporting Requirements: Subject to regular reporting and capital adequacy requirements

Account Protection

• FSCS Coverage: Up to £85,000 protected under the Financial Services Compensation Scheme
• Asset Segregation: Client investments held separately from company assets
• Custodian Model: Assets held by separate custodian bank
• Insurance: Additional professional indemnity insurance

Technical Security

• Authentication: Biometric login options (fingerprint/face recognition)
• Encryption: Bank-level encryption for data protection
• Secure Connections: HTTPS and SSL protocols for all communications
• Monitoring: Continuous security monitoring and regular testing
• Data Handling: Compliance with GDPR and data protection regulations

Freetrade maintains a strong security posture and regulatory compliance framework, providing reasonable assurance for retail investors regarding the safety of their funds and personal information. The platform's status as an FCA-regulated entity and FSCS member offers important protections that distinguish it from less regulated international platforms.

Customer Support and Community

The quality of support and community engagement can significantly impact the user experience:

Support Channels

• In-App Chat: Primary support channel for all users
• Email Support: Available for more complex queries
• Priority Support: Faster response times for Plus and Alpha subscribers
• Support Hours: Generally business hours (not 24/7)
• Response Time: Variable based on subscription tier and query complexity

Help Resources

• Knowledge Base: Articles covering common questions and platform features
• Help Center: Searchable repository of support articles and guides
• Blog: Educational content and company updates
• Onboarding Guides: Step-by-step tutorials for new users

Community Features

• Community Forum: Active official community for discussions and questions
• Reddit Community: Unofficial but active subreddit for users
• Social Media: Active presence on Twitter, Instagram, and other platforms
• Freetrade Investor Community: Special community for shareholders in Freetrade itself

Freetrade has built a strong community presence that compensates somewhat for its relatively basic support structure. The tiered support system, with priority service for paid subscribers, represents a reasonable approach, though some users report inconsistent response times during peak periods or market volatility.

Pros and Cons of Freetrade

Pros

• Genuinely commission-free trading without hidden fees
• Simple, intuitive interface ideal for beginners
• Fractional shares enabling investment with small amounts
• ISA and SIPP options for tax-efficient investing
• FCA regulation and FSCS protection for security
• Transparent fee structure with predictable monthly costs
• Low minimum investment (just £1)
• Growing investment universe with regular additions

Cons

• Foreign exchange fee adds cost to US/EU investments
• Limited research and analysis tools compared to competitors
• Basic order types only (no limit orders or stop losses)
• Tiered access to stocks requiring paid subscriptions for full selection
• No desktop application for serious traders
• Limited advanced features for experienced investors
• No dividend reinvestment program
• £25 per line fee when transferring investments out

Freetrade vs. Competitors

How does Freetrade compare to other popular investment platforms?

Freetrade vs. Trading 212

• Fee structure: Both offer commission-free trading, but Trading 212 has no subscription fee
• Forex fees: Trading 212 charges 0.15% vs. Freetrade's 0.45% (0.15% for Alpha)
• Investment selection: Trading 212 offers more stocks and additional instruments like CFDs
• Trading tools: Trading 212 provides more advanced order types and analytical tools
• Platform: Both offer mobile-first approach, but Trading 212 has more robust features
• ISA cost: Free with Trading 212 vs. £9.99/month with Freetrade Plus
• Overall approach: Freetrade is simpler; Trading 212 offers more tools but higher complexity

Freetrade vs. Hargreaves Lansdown

• Fee structure: Freetrade's subscription vs. HL's percentage-based fees and commissions
• Trade costs: £0 at Freetrade vs. £5.95-£11.95 per trade at HL
• Investment range: HL offers much wider selection including funds, bonds, and more markets
• Research: HL provides comprehensive research, analysis, and expert content
• Platform: HL offers sophisticated desktop platform and more advanced features
• Support: HL provides phone support and more comprehensive service
• Target audience: Freetrade targets beginners and casual investors; HL caters to more serious investors

Freetrade vs. Vanguard Investor

• Focus: Freetrade offers individual stocks; Vanguard focuses on their own funds
• Fees: Vanguard charges 0.15% account fee (capped at £375) but no fund dealing charges
• Investment approach: Vanguard promotes passive index investing; Freetrade enables both passive and active
• Minimum investment: £1 for Freetrade vs. £500-£100 for Vanguard funds
• Platform: Freetrade offers more modern interface; Vanguard is more traditional
• Philosophy: Vanguard emphasizes long-term investing; Freetrade is more flexible

Who Should Use Freetrade?

Freetrade is particularly well-suited for:

• Beginning investors seeking a simple entry point to stock market investing
• Long-term, buy-and-hold investors who make infrequent trades
• UK-focused investors looking to minimize forex fees
• Small-sum investors benefiting from fractional shares and low minimums
• Mobile-first users who prefer managing investments via smartphone
• ISA investors willing to pay the Plus subscription for tax advantages
• Those who value simplicity over advanced features
• Investors seeking commission-free trading with FCA regulation

Freetrade may not be ideal for:

• Active traders requiring advanced order types and tools
• Technical analysts needing sophisticated charting capabilities
• Investors seeking comprehensive research within their platform
• Those interested in derivatives, bonds, or cryptoassets
• High-volume forex traders sensitive to currency conversion fees
• Investors requiring advisor support or extensive customer service
• Fund-focused investors with access to cheaper options elsewhere
• Advanced investors requiring desktop trading environment

Conclusion: Is Freetrade Worth Using?

After thoroughly examining Freetrade's features, fee structure, investment options, and user experience, the platform's value proposition becomes clear. Freetrade offers a compelling solution for specific investor profiles while presenting limitations for others.

For beginners and casual investors seeking a straightforward entry into stock market investing, Freetrade delivers genuine value. The commission-free structure eliminates a significant barrier to starting small, while the intuitive interface and educational content help newcomers navigate the investment landscape. The Basic (free) tier provides a no-cost entry point for testing the waters, particularly for UK-focused investments.

The subscription model becomes more worthwhile for regular investors utilizing tax-advantaged accounts like ISAs and SIPPs, especially when the monthly fee is offset by savings on trades. For instance, an investor making just 2-3 trades per month would typically save money compared to traditional brokers charging £5-12 per trade, even accounting for the Plus subscription fee.

However, Freetrade's value diminishes for frequent traders of US and European securities who face ongoing forex fees, investors requiring sophisticated research and trading tools, and those seeking the absolute lowest cost option for very occasional trading. The platform's simplified approach, while beneficial for beginners, creates limitations for advanced investing strategies.

In the UK investment platform landscape, Freetrade occupies a middle ground—more sophisticated than pure robo-advisors but less complex than full-featured brokerages. This positioning makes it ideal as either a starting point for new investors or a streamlined option for experienced investors who value simplicity and mobile access over comprehensive features.

In summary, Freetrade is worth using for investors who align with its strengths: commission-free trading, simplified interface, low barriers to entry, and mobile-first approach. The platform has successfully made investing more accessible, though prospective users should carefully consider their specific investment needs, trading frequency, and geographical focus to determine if Freetrade's approach complements their financial goals.