Freetrade is one of the UK’s most popular commission-free investment apps — and it’s a frequent recommendation for students and beginners. But is it actually worth it in 2024, or are there better alternatives?
We’ve tested it thoroughly. Here’s our honest verdict.
What is Freetrade?
Freetrade is a UK-based investment platform launched in 2018. It lets you buy and sell stocks, ETFs, and investment trusts with no trading commissions. It has over 1.4 million registered users and is regulated by the FCA.
Freetrade Plans — What Do You Get?
Freetrade has two plans:
Free Plan (£0/month)
- Access to 6,000+ stocks and ETFs
- Commission-free trading
- General Investment Account only (no ISA)
- Basic order types (market and limit orders)
Standard Plan (£4.99/month)
- Everything in Free
- Stocks and Shares ISA included
- Interest on uninvested cash (currently 3%)
- Priority customer service
For most students, the decision is: do you need an ISA? If yes, you’ll need to pay £4.99/month.
Freetrade Fees — The Full Breakdown
| Fee | Amount |
|---|---|
| Trading commission | £0 |
| Standard Plan | £4.99/month |
| FX fee (non-UK stocks) | 0.99% |
| Withdrawal fee | £0 |
| Inactivity fee | £0 |
The FX fee is worth noting — buying US stocks like Apple or Tesla costs 0.99% of each trade. On a £100 trade, that’s 99p. Not huge, but it adds up.
What Can You Invest In?
- UK and US stocks
- ETFs (including popular index funds like Vanguard’s FTSE All World)
- Investment trusts
- Fractional shares (buy £2 worth of Amazon if you want)
The stock selection is solid for a beginner — you won’t find options, CFDs, or complex derivatives here, which is actually a good thing.
Freetrade vs Trading 212 — Which is Better for Students?
This is the most common comparison. Here’s how they stack up:
| Feature | Freetrade | Trading 212 |
|---|---|---|
| Commission | Free | Free |
| ISA | £4.99/month | Free |
| FX Fee | 0.99% | 0.15% |
| Cash interest | 3% (Standard) | 5.2% (all users) |
| AutoInvest | No | Yes (Pies) |
| Stock selection | 6,000+ | 10,000+ |
| App rating | 4.7/5 | 4.6/5 |
On paper, Trading 212 wins almost every category — especially the free ISA and lower FX fees. But Freetrade has a dedicated following who prefer its simpler, less cluttered interface.
Freetrade Pros
- Clean, beginner-friendly app — genuinely easy to use
- Commission-free trading — no hidden trading costs
- UK-based and FCA regulated — trustworthy
- Fractional shares — invest in expensive stocks with small amounts
- Good stock selection — covers most of what beginners need
Freetrade Cons
- ISA requires £4.99/month — Trading 212 offers this for free
- 0.99% FX fee — higher than competitors for US stocks
- No AutoInvest feature — you have to manually place trades
- Interest rate lower than competitors — 3% vs Trading 212’s 5.2%
- No crypto — some beginners want this (though it’s debatable if they should)
Is Freetrade Safe?
Yes. Freetrade is:
- FCA regulated
- FSCS protected up to £85,000
- Ring-fenced client funds — your money is separate from Freetrade’s operating funds
Your investments are held in your name via a nominee structure, which is standard across UK platforms.
Who is Freetrade Best For?
Freetrade is a good choice if:
- You prefer a clean, simple interface over feature-heavy apps
- You mainly invest in UK stocks (avoiding the FX fee)
- You’re happy paying £4.99/month for ISA access
- You want a no-frills investing experience
Choose Trading 212 instead if:
- You want a free ISA
- You invest in US stocks regularly
- You want AutoInvest/Pies features
- You want higher interest on uninvested cash
Our Verdict — 7.5/10
Freetrade is a solid, trustworthy investment app with a genuinely good user experience. For students specifically, the £4.99/month ISA fee is the main sticking point — Trading 212 offers the same thing for free.
That said, many students use both: Trading 212 for their ISA and day-to-day investing, and Freetrade as a backup or for specific stocks. There’s no cost to having both accounts open.
[Sign up to Freetrade →]
Capital at risk. The value of investments can go up as well as down.