Freetrade Review 2023: Overview, Pros, and Cons
Are you considering Freetrade as your next investment platform? With its commitment to no platform fees, access to a wide selection of stocks and ETFs, and a simple user interface tailored for UK traders, it's no surprise that Freetrade has become one of the most popular trading platforms in the UK.
Are you considering Freetrade as your next investment platform? With its commitment to no platform fees, access to a wide selection of stocks and ETFs, and a simple user interface tailored for UK traders, it’s no surprise that Freetrade has become one of the most popular trading platforms in the UK. In this Freetrade review, we’ll be taking an in-depth look at what makes Freetrade so attractive – from its fee structure to educational resources and more – giving you all the information necessary to decide if it is right for you.
What Is Freetrade?
Freetrade is a commission-free investment platform that operates via a mobile app. It’s located in the UK and has been around since 2016. Users can use the app to open an investment account, put money into it, and invest in various stocks and ETFs listed on different stock markets. Additionally, the app allows users to monitor their investment performance and conduct trades.
With Freetrade, you can invest in diverse stocks and ETFs from various industries like technology, healthcare, energy, and finance. The platform also enables users to purchase fractional shares, which can be useful when dealing with expensive stocks that may be out of reach otherwise.
Apart from commission-free investing, Freetrade provides other features to its users, such as a stocks and shares ISA. This allows users to invest up to a certain amount each tax year without paying taxes on returns. Freetrade Plus, a premium subscription service, offers more features like extended hours of trading, limit orders, and more access to stocks and ETFs.
Freetrade is a UK-based company that’s regulated by the Financial Conduct Authority (FCA). The company offers protection to its users through the Financial Services Compensation Scheme (FSCS). This means that if Freetrade were to go bankrupt, users would receive compensation for their money and investments up to a certain amount.
Freetrade Review: What Are Pros and Cons?
Freetrade is a platform for investing that is easy to use and accessible. Their mobile app is user-friendly and allows commission-free investing in various stocks and ETFs. This makes it ideal for beginners who want an inexpensive and straightforward way to begin investing.
Freetrade’s fractional shares feature stands out as it enables users to invest in costly stocks that would otherwise be unaffordable. This is an excellent opportunity for users to diversify their portfolios by investing in a variety of stocks and ETFs from various sectors and industries.
In addition to its standard features, Freetrade provides a stocks and shares ISA, which enables users to invest a specific amount per tax year without paying taxes on the profits. Freetrade Plus, the platform’s premium subscription service, offers extended hours of trading, limit orders, and access to more stocks and ETFs.
Although Freetrade’s commission-free model is appealing, it is important to know that the platform does impose a fee for certain features, such as instant trades and ISA transfers. Furthermore, Freetrade’s range of stocks and ETFs may not be as broad as that of other investment platforms, which may restrict more seasoned investors.
Pros:
- You can invest in multiple stocks and ETFs without any commission fees, and you can also purchase fractional shares.
- The mobile app should be easy to use and navigate for users.
- We provide a tax-efficient way of investing through a stocks and shares ISA.
- The Financial Services Compensation Scheme (FSCS) provides regulatory protection.
- Freetrade Plus is a premium subscription service with extra features like extended hours of trading and limit orders.
Cons:
- Some other investment platforms offer a wider selection of stocks and ETFs compared to this platform.
- Certain features like instant trades and ISA transfers are subject to small fees.
- The platform does not provide assistance for mutual funds or any other types of investment products.
- It is not possible to access foreign exchanges or international stocks.
- There is no desktop platform available for users who prefer to invest using a computer.
Conclusion:
Freetrade is a great option for investors seeking an affordable and easy-to-use platform. Its fractional sharing option, features, and regulatory safeguards make it an attractive choice for both beginners and experienced investors. However, those who want a greater variety of investment options may want to explore platforms that offer more extensive choices.
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