Freetrade

Freetrade is a UK-based stock trading app that allows users to invest in stocks and ETFs with zero commissions. It was built to challenge expensive legacy brokers by offering a simple, mobile-first experience similar to Robinhood. Users can buy fractional shares of US companies, as well as UK and European stocks.

The platform operates a "Freemium" model; the basic account is free, but a monthly subscription is required to access an ISA (Individual Savings Account) or SIPP (Pension). Freetrade is a legitimate, FCA-regulated broker that holds client money in segregated accounts, making it a safe and popular choice for younger investors in the UK.

Frequently Asked Questions

1. Is Freetrade really free?

Yes, the Basic account has no monthly fee and offers commission-free trading on thousands of stocks. However, they charge a small FX fee (0.45% to 0.99%) on international trades, and premium accounts (Standard/Plus) have a monthly subscription cost.

2. Is my money safe?

Yes, Freetrade is authorized and regulated by the Financial Conduct Authority (FCA) in the UK. Customers are covered by the Financial Services Compensation Scheme (FSCS), which protects assets up to £85,000 if the firm goes bust.

3. Can I buy fractional shares?

Yes, Freetrade offers fractional shares for US stocks, allowing you to invest in companies like Tesla or Amazon with as little as £2. This makes it easy to build a diversified portfolio even with a small budget.

4. Do they offer an ISA?

Yes, Freetrade offers a Stocks and Shares ISA, which is a tax-efficient wrapper for UK residents. However, the ISA is only available on their paid subscription plans, so you must pay a monthly fee to access it.

5. Can I trade crypto?

No, Freetrade currently does not offer cryptocurrency trading. They focus exclusively on the stock market, ETFs, and investment trusts, aiming to encourage long-term investing rather than speculative crypto trading.