Freetrade Review

Freetrade is a new investment service, aimed at making investing cheaper and more accessible for all. Find out whether this platform is worthwhile for investors.
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7 min read
Freetrade London

Originally launched in 2018, Freetrade aims to make investing accessible, simple and affordable for everyone. While many other services charge commissions per trade, Freetrade does not, as the company name would indicate.

What Freetrade charge While Freetrade does not charge a commission on trades, they aren’t a totally ‘free’ service. Freetrade charges for the type of account you have with them. In detail the types of accounts and their charges are:

  • General Investment Account: This account is free and you only pay the FX conversion fee.
  • ISA Account: This account is £3 per month and you also pay the FX conversion fee.

Additionally, there is a Freetrade Plus plan. This is separate as it is an upgrade to the accounts you already have with Freetrade. The Plus upgrade includes:

  • A £9.99 monthly charge.
  • ISA included free of charge.
  • 3% interest on cash balances, paid monthly.
  • Access to a wider range of investments.
  • Limit orders.
  • Stop losses.
  • Priority customer service.

Finding investments

Freetrade makes it as easy as possible to find what you’re looking for. All investment types such as Stocks, ETFs etc… are all found on the Discover page.

Firstly, there are no huge long lists – the Discover page is kept simple and organised. There’s a search section, so you can find exactly what you want, or, if you wish to browse, the rest of the tab is aimed at helping you find something new to invest in.

Near the top there is a recently viewed section, so you can quickly get back to what you were previously looking at. There’s also a section below called ‘newly added’, showing the latest additions to the Freetrade platform. Further down the tab there are rotating sections, which do appear to move around in order, these sections include areas such as ‘Green energy’ and ‘Tech titans’.

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Photo By: Freetrade-Discover.png

There is also a Sectors area, which you can scroll through and select different sectors. For example, if you tap on finance it will show you a long list of all the investable options in the finance industry. The lists here are very long, so this may not be the best way to find what to invest in.

Other sections mentioned above (Green energy, tech titans, popular stocks) however have shorter lists and it is much more manageable to find what you’re looking for.

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Photo By: Freetrade sector list.png

Portfolio

Freetrade shows your investment portfolio clearly and simply. On the portfolio tab, there is a graph showing the performance of your investments and further below is a list of all the investments you currently hold. Freetrade also makes it much easier to see your investments at a quick glance, by showing a large logo relating to the investment on the portfolio page. The only issue with the portfolio page would be if you hold lots of investments, and since your investments are shown in a list, it can get quite long and difficult to manage.

Investment availability

At the current time, Freetrade does not offer as many investment options as other providers, however, the list is quickly growing.

For most people, Freetrade will offer what is needed as they allow investment in many of the largest companies and most popular funds.

You can find the full list of available investment options here.

IPO’s

Generally, Freetrade is quite good at getting newly listed companies on their platform quickly.

Freetrade also has a page on their website which is an excellent IPO tracker. It helps users see which companies are rumoured to be going public and which companies have already filed to be going public. It’s a pretty good indication that if Freetrade has a company listed on this page then that company will be added to the Freetrade platform fairly quickly after they go public.

The buy and sell process

Freetrade makes the whole process of buying and selling investments super simple and fast. There are no complicated menus to navigate through, the user simply goes to the stock you’d wish to buy or sell and tap the corresponding buttons. Enter the amount you’d like to deal with and the order should execute.

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Photo By: Freetrade stock page.png

After your sell or buy order has been executed you’ll see a confirmation on-screen and the details of the trade will be shown which you can also access later via the stock page or the activity feed.

The only issue we had with Freetrade was the actual selling and buying of stocks. It seems to take a little longer than other brokers and we even saw a higher rate of buy or sell orders failing to execute. It’s quite safe to say that this is not necessarily the fault of Freetrade, since sometimes it may happen because of high demand or lack of demand, but it is worth mentioning other services seem to experience these issues less.

Investment information

Along with the IPO calendar mentioned above, Freetrade offers lots of information about individual investments you can make on their platform.

On every investment available on Freetrade, the app includes a ‘Stats and About’ section.

Stats section

This includes technical details about the investment, including:

  • Market open price.
  • Day high price.
  • Day low price.
  • Market cap.
  • Dividend yield.
  • P/E ratio.

About section

This includes a short description of the investment, with a twist by Freetrade with how the investment is described. It also shows the tags of what industry the investment fits into.

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Photo By: Freetrade about section.png

Extras

Finally, under the about section, the app shows a page you can visit to see the costs and charges of the investment, which is only really relevant for funds etc… since Freetrade does not charge for stock investments.

Also, there’s a link to the Freetrade forum discussion for that investment, which has a post for every investment available on Freetrade. There you can talk with other Freetrade users about the investment.

Customer service

For any questions users may have, Freetrade can help with its FAQ section in the app. Also, Freetrade also has an active community forum where other Freetrade users may be able to help.

However, if you need to speak to someone from Freetrade this is also possible.

From our experience, Freetrade has excellent customer service. The time it takes for someone to respond has varied greatly, depending on demand and the complexity of the question. Freetrade Plus users also get priority customer support. But overall if you have any issues Freetrade support will be happy to help and are prompt with answering any queries.

You can contact Freetrade either in-app or via email.

Referrals

Freetrade also offers a referral programme for all users. It works in a very simple way: When a new user joins and funds their account both the referrer and the new user get a free share worth between £3 and £200. The free share usually appears around a week after a successful referral. Also at the current time, there are no limits on how many users it’s possible to refer.

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Photo By: Freetrade refer a friend.png

Verdict

Overall Freetrade certainly makes investing more accessible and affordable for everyone. The simplicity and ease of investing with Freetrade make it a fanstastic, low cost and yet reliable investment service to use. Although they are a newer service compared to more established competitors such as Hargreaves Lansdown, Freetrade is moving quickly and already is a viable choice.

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