Hi, I'm Jen! I'm a personal finance expert and money coach aiming to help you take control of your money. I went from being broke to a six-figure net worth and am now on track to be financially independent at age 40. Discover Jen's story
In this Freetrade review, you’ll learn all about this mobile-based broker. This includes its features and benefits and my experience with the app.
I downloaded Freetrade in April 2020 for the free-share offer. I liked the app’s simplicity and the zero commission, so I kept part of my investments with Freetrade. However, in August 2023, I left after months of frustration. This doesn’t mean Freetrade is bad per se, but there are things you should know.
🪧 Should you sign up through my affiliate links, I may receive a commission at no cost to you.
Free Share Offer Instructions
If you want a free share, click the button and follow the instructions. Signing up to Freetrae is free and takes around ten minutes. Note that this offer is unreliable, and you may not get your free share. See my free money offers list for better offers.
1. Click my referral link above.
2. Submit your email address.
3. Download Freetrade from the App Store or Google Play.
4. Complete the W-8BEN form.
5. Deposit £50.
6. A mystery share will appear on your portfolio screen.
7. Wait seven to ten days for the share to become real.
8. Sell your free share and withdraw your money.
What Is Freetrade?
Freetrade is a trading and investment platform founded by Adam Dodds in 2015. It is a UK-based company aiming to make investing accessible to new investors. The app lets you buy and sell stocks and exchange-traded funds (ETFs).
Freetrade is simple, easy to use, and commission free. Unsurprisingly, this business model has become quite successful. Freetrade now has over one million users. The benefits of Freetrade include:
- Commission-free investing: no fees on basic stock trades.
- Low minimum investment: start with as little as £2.
- Free mystery shares: gain one free share for every friend you refer.
- More than 6000 UK and US stocks and funds: choose from various well-known stocks.
Freetrade Is Legit
Freetrade is legit and not a scam. It is a registered company regulated by the Financial Conduct Authority (FCA). On Trustpilot, Freetrade has over 3000 reviews with an average score of 4.1 out of 5.0. Overall, 80% of reviews are great or excellent, the highest available ratings.
The negative reviews are about increasing costs and poor customer support. I’ve experienced their poor customer support first hand, so I agree.
What Is Trustpilot?
Overall, there are over 150 million reviews on Trustpilot. You can generally get a good understanding of the legitimacy and customer-friendliness of a company.
Freetrade Is Safe
Freetrade is a UK-regulated stockbroker authorised by the FCA. It must keep customers’ money separate from its own and treat customers fairly.
Users also enjoy Financial Services Compensation Scheme (FSCS) protection. Should Freetrade go bankrupt, you get back up to £85,000 of your money. This protection doesn’t cover investment losses.
What Fees Does Freetrade Charge?
Freetrade offers three plans: Basic, Standard, and Plus.
| Plan | Basic | Standard | Plus |
|---|---|---|---|
| Price | Free | £4.99 per month or £59.88 per year | £9.99 per month or £119.88 per year |
| Forex fees | 0.99% | 0.59% | 0.39% |
| Accounts | General Investment Account only | General Investment Account Stocks & Shares ISA | General Investment Account Stocks & Shares ISA SIPP |
| Available stocks | Over 1500 | Over 6000 | Over 6000 |
| Key benefits | – | 1% interest on cash Limit and stop orders | 3% interest on cash Analyst ratings Freetrade web |
When Freetrade opened, its most advertised feature was (and still is) commission-free trading. But this is deceptive. To make up for the missing commission, Freetrade charges high Forex fees. For example, Trading 212 is also commission free and charges a Forex rate of 0.15%.
Forex fees apply whenever you buy stocks in a currency other than GBP. This includes US stocks, meaning you’ll pay it for most transactions. However, if you only want to buy British shares, Freetrade is a cheap option.
Read how these fees compare to Hargreaves Lansdown in my Freetrade vs Hargreaves Lansdown comparison.
Freetrade Plus Is Great for Large Portfolios
With Freetrade Plus, the forex fees are lower. Instead, you pay a monthly or yearly fixed fee. This is what makes Freetrade great for larger pension portfolios. You’ll pay the same regardless of how much you have invested.
How Does Freetrade Work?
Freetrade is an online broker. Brokers connect customers to the stock market. Through the platform, you can buy and sell stocks.
1. Signing up
Signing up to Freetrade is free. New users can also get a free share. Beware, though, some users have issues with getting their share.
The sign-up process is straightforward. Open the app and enter the email address you used to activate the free share. Freetrade will send you an email, and you must click the activation link. You also need to enter the standard anti-money-laundering details:
- Name
- Address
- National Insurance Number
- Proof of identity
- Proof of your address (driver’s license or passport)
- Confirmation that you’re not a US tax resident (W-8BEN form)
You can fill in the W-8BEN form on the app:
2. Depositing
To use your account, you need to deposit at least £2. For the free-share offer, you need a minimum deposit of £50. You will link a bank account during the sign-up process. To deposit, head to the Account section and tap Top up.
You can see Freetrade’s bank details and a unique reference code. With this information, you can make a manual bank transfer. Freetrade processes payments between 8 AM and 8 PM, Monday to Friday. You should receive your cash within two to four hours during this time.
Alternatively, you can use Google Pay or Apple Pay for instant deposits.
3. Buying Stocks
Buying stocks with Freetrade is simple. In the Discover section, you can find all of Freetrade’s assets. Choose the stock you wish to buy by tapping on them and selecting Buy. You can also buy fractional shares.
Freetrade Offers Poor Customer Service
Freetrade’s customer service is the main reason I closed my account. I agree with the users who left bad reviews on Trustpilot. If you have issues, you are on your own.
I contacted Freetrade because I had not received free shares from referring users. After waiting weeks, they told me I didn’t meet the requirements. Your account’s lifetime withdrawals can’t exceed your deposits. So, I deposited money.
After this, I still didn’t receive my free shares. I went back to customer service. After waiting weeks, they said there was a technical issue. They promised to resolve it but never did. Every time I asked for an update, they said to wait. After eight months, I gave up. Freetrade clearly didn’t want to help me.
I tried to be unbiased in this review and highlight Freetrade’s good features. However, overall, I don’t recommend using this app.
Why Do Other Reviews Still Favour Freetrade?
You may have seen reviews from other content creators. Many of these consider Freetrade to be one of the best investment apps. There are different reasons for this verdict.
Many reviewers have used older versions of Freetrade. Before they introduced their plans and increased prices, Freetrade was a competitive app.
The second reason is that Freetrade has a generous affiliate program. Creating online content is a job, and creators need to make money. However, they aren’t paid for telling you not to use an app.
Pros and Cons of Freetrade
👍 Pros
- Beginner-friendly platform
- Generous sign-up offer
- Cheap for SIPPs
👎🏻 Cons
- Sign-up offer doesn’t always work
- Poor customer service
- Stock buying orders are not instant
- High ISA and forex fees
- Can only buy UK and US stocks
Frequently Asked Questions
Why Does Freetrade Need a National Insurance Number?
Freetrade needs your National Insurance number (NINO) because they are a UK-regulated broker. They need to ensure you are you and not an imposter or fraudster. This is why you have to undergo a verification process.
Why Does My Cash Show as Unsettled in the Freetrade App?
When you place a selling order with Freetrade, the cash shows as unsettled. This is because it takes Freetrade time to execute the order. Most cash will settle within two or three business days.
You cannot withdraw unsettled cash. While the transaction is still in progress, your cash is not in your account. Therefore, you cannot withdraw it.
Are There Alternatives to Freetrade?
- Stake. Stake is an alternative to Freetrade for investing with a General Investment Account. Read more in my Stake App review.
- Trading 212. Trading 212 is cheaper than Freetrade and offers more asset variety. Read more in my Trading 212 review.
Read my Vanguard vs Freetrade comparison to see which platform is better for Vanguard funds.
Freetrade Review Summary
Freetrade is a stockbroker with a user-friendly app and a British alternative to Robinhood. The app offers commission-free trading, although their forex fees are high. Freetrade also has issues with customer service.
Because of these issues and not receiving my free shares, I moved my assets to Trading 212. Trading 212 is cheaper overall and has more options. You may prefer using one of the best ETF brokers instead.
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