Freetrade

Overview

When Adam Dodds and Viktor Nebehaj founded Freetrade in 2016, they had a simple yet revolutionary vision: tear down the barriers that kept ordinary UK citizens from building wealth through investing. Today, with over 1.6 million users and recognition as the “Best Online Trading Platform” for six consecutive years at the British Bank Awards, Freetrade has become the UK’s answer to Robinhood—a mission-driven fintech that has fundamentally changed how a generation approaches investing.

The platform’s journey from startup to profitability tells the story of democratic finance in action. In 2024, Freetrade reported its first-ever profitable half-year, with revenues climbing 34% to £13.1 million, proving that accessible investing isn’t just good for users—it’s sustainable business. This milestone came just months before IG Group’s £160 million acquisition in early 2025, validating Freetrade’s position as a cornerstone of the UK’s retail investing revolution.

Key Features

Freetrade’s feature set reflects its core philosophy: investing should be as simple as ordering a coffee, yet as powerful as you need it to be. The platform’s commission-free trading eliminates the £10-20 transaction fees that traditionally made small investments uneconomical, while fractional shares mean you can own a piece of expensive stocks like Tesla or Amazon with just a few pounds.

The mobile-first design isn’t just about convenience—it’s about meeting users where they are. For the 61% of Freetrade users under 35, many of whom are investing for the first time, the clean interface removes intimidation and complexity. Meanwhile, features like regular investing and auto-investing help users build wealth systematically, turning the psychological challenge of market timing into automated discipline.

The platform’s social features create a community of learners, while educational content ensures users understand what they’re buying. For 70% of Freetrade customers using their first-ever investment service, this combination of simplicity and support proves crucial in building confidence and long-term investing habits.

Trading Platforms

Freetrade Mobile App

The heart of Freetrade’s experience lies in its mobile app, purpose-built for the smartphone generation. Unlike traditional platforms that ported desktop complexity to mobile screens, Freetrade started fresh, creating an interface that feels more like Instagram than a trading terminal. The search function helps users discover investments through simple company names rather than ticker symbols, while portfolio tracking presents performance in clear, digestible visuals.

Price alerts keep users informed without overwhelming them, and the secure biometric login means accessing your investments is as quick as unlocking your phone. The social features foster a community where users share insights and learn from each other, transforming investing from a solitary pursuit into a shared journey toward financial goals.

Freetrade Web App

For users who prefer larger screens or need to manage more complex portfolio tasks, the web app extends the mobile experience without abandoning its core simplicity. The synchronized approach means your £50 Tesla investment made on your phone during lunch appears instantly on your desktop, creating seamless continuity across devices. This flexibility ensures that whether you’re making a quick trade or conducting deeper portfolio analysis, the experience remains consistent and user-friendly.

Fees and Costs

Freetrade’s freemium model demonstrates how financial services can be both profitable and accessible. The genius lies not in hidden fees or complex pricing tiers, but in a transparent structure that lets users choose their level of engagement.

Basic Account: The Gateway to Investing

Imagine Sarah, a 25-year-old teacher who wants to start investing but has been deterred by traditional broker fees. With Freetrade’s basic account, she can buy UK and European stocks completely free of commission, meaning her £20 monthly investment in a FTSE 100 ETF goes entirely toward building her wealth. Even US stocks carry no commission, though a 0.99% foreign exchange fee applies—far lower than the currency conversion costs at high street banks.

Plus Account: For the Growing Investor

As Sarah’s confidence and portfolio grow, the £2.99 monthly Plus subscription unlocks a universe of over 6,000 stocks compared to the basic account’s 3,000+. More importantly, she gains access to limit orders, allowing her to buy stocks at specific prices rather than whatever the market offers. The 3% AER on uninvested cash means her money works harder while she researches her next investment, and priority support ensures her questions get answered quickly.

SIPP: Building Retirement Wealth

For £3 monthly, the Self-Invested Personal Pension wrapper transforms investing into a tax-efficient retirement strategy. A 40% rate taxpayer investing £100 effectively costs them £60 after tax relief, while the investments grow tax-free until retirement. This combination of low fees and tax efficiency makes building a substantial pension pot achievable for ordinary earners.

The True Cost Advantage

Freetrade’s transparent fee structure eliminates the surprise charges that plague traditional investing. No withdrawal fees mean you can access your money when needed, no account closure fees prevent lock-in, and no inactivity fees recognize that good investing sometimes means doing nothing. The 0.99% foreign exchange fee on US trades, while present, remains significantly lower than the 2-4% spreads typically charged by banks and traditional brokers.

Account Types

Freetrade’s account structure follows a user’s natural progression from curious beginner to sophisticated investor, with each tier designed to serve different life stages and financial goals.

Basic Account: Where Everyone Starts

The basic account removes every traditional barrier to entry. Commission-free trading on UK and European stocks means a university student can start investing with their £10 weekly coffee money, while access to over 3,000 stocks and ETFs provides enough diversity for most portfolios. Fractional shares are the real game-changer here—you can own £5 worth of Microsoft or £15 of a FTSE 100 ETF, making expensive stocks accessible to everyone. Market orders keep things simple, executing trades at the current market price without complexity.

Plus Account: For the Developing Investor

As users grow more sophisticated, the Plus account expands possibilities without overwhelming complexity. The jump to 6,000+ stocks includes many growth companies and international options that basic users can’t access. Limit orders become crucial for those who’ve learned to buy on dips or take profits at target prices, while priority support recognizes that more active investors need faster responses. The enhanced cash features, including competitive interest rates on uninvested funds, ensure money never sits idle.

Stocks & Shares ISA: Tax-Efficient Growth

The ISA wrapper transforms Freetrade from a trading platform into a long-term wealth-building tool. The £20,000 annual allowance provides substantial room for growth, while tax-free status means every pound of dividends and capital gains stays in your pocket. At £3 monthly, the cost is negligible compared to the tax savings—a 20% taxpayer saving £1,000 in dividend tax annually pays for 27 years of ISA fees.

SIPP: Retirement on Your Terms

The Self-Invested Personal Pension represents Freetrade’s most powerful offering for long-term investors. Unlike workplace pensions limited to a handful of funds, SIPP users can build retirement wealth through individual stocks, ETFs, and diverse investment strategies. The tax benefits are substantial—higher-rate taxpayers effectively get a 40% bonus on contributions, while investments grow tax-free for decades. At £3 monthly, it’s among the cheapest SIPP offerings in the UK market.

Regulation and Security

Trust forms the foundation of any financial relationship, and Freetrade recognizes that democratizing investing means nothing without ironclad security. The platform operates under full FCA regulation (Firm Reference: 696451), providing the same regulatory protection as established banks and traditional brokers. This isn’t just paperwork—it means Freetrade must maintain strict capital requirements, segregate client assets, and operate under continuous regulatory oversight.

The Financial Services Compensation Scheme (FSCS) protection up to £85,000 per person ensures your investments remain safe even in worst-case scenarios. Client money segregation with Barclays means your cash never mingles with company funds, while advanced security protocols and regular audits maintain the digital fortress protecting your financial data. For users entrusting their financial futures to a mobile app, these safeguards provide essential peace of mind.

Pros and Cons

Strengths: Democratization in Action

Freetrade’s greatest achievement lies in making investing genuinely accessible to ordinary people. Completely free basic trading removes the biggest barrier to entry, while the beginner-friendly interface ensures users don’t need finance degrees to start building wealth. Fractional shares represent a fundamental shift in accessibility—when a single Amazon share costs thousands of pounds, being able to buy £10 worth levels the playing field entirely.

The platform’s UK market focus isn’t a limitation but a strength, providing deep access to domestic companies and ETFs without the complexity of global markets overwhelming beginners. No minimum deposit requirements mean anyone can start, while ISA and SIPP wrappers provide tax-efficient growth paths. The regular investing features help users build discipline, while community features create a support network for financial learning.

Limitations: The Trade-offs of Simplicity

Freetrade’s commitment to simplicity creates inherent limitations that may frustrate more sophisticated investors. The basic account’s restricted investment universe can feel constraining as users develop more diverse investment strategies, while monthly fees for premium features create ongoing costs that active traders might prefer to avoid through per-transaction pricing.

The platform deliberately avoids advanced charting and analysis tools, which keeps things simple but limits research capabilities for those who want deeper market insights. Educational resources, while improving, remain limited compared to established brokers’ extensive libraries. Foreign exchange fees on international trades add costs for global diversification, while the absence of dividend reinvestment programs means income investors must manually reinvest distributions.

Customer support challenges reflect rapid growth outpacing infrastructure development, and the mobile-first approach means users preferring desktop environments may find the experience less satisfying. These limitations aren’t flaws but conscious design choices that prioritize accessibility over comprehensive functionality.

Who Is This Broker For?

Freetrade serves a specific but substantial market: people who’ve been excluded from traditional investing or intimidated by its complexity. The platform excels for complete beginners who need confidence-building more than comprehensive features, and mobile-first users who expect financial services to work like the other apps they use daily.

Consider Emma, a 28-year-old marketing assistant earning £30,000 annually. Traditional brokers demand £500 minimum investments and charge £12 per trade, making her £50 monthly investing plan uneconomical. Freetrade eliminates these barriers entirely, letting her build a diversified portfolio gradually while learning about investing through community discussions and educational content. The ISA wrapper ensures her growing wealth remains tax-free, while the simple interface means she focuses on investment fundamentals rather than complex trading strategies.

UK-focused investors particularly benefit from Freetrade’s domestic market strength and understanding of local tax wrappers. Young investors starting with small amounts find the platform transformative—fractional shares mean a £20 investment can own pieces of multiple companies, while zero commissions ensure their money goes toward wealth-building rather than fees.

The platform also appeals to investors who value community and social learning over solitary research. For people seeking hassle-free, long-term wealth building without the complexity of traditional brokers, Freetrade provides an ideal combination of simplicity, cost-effectiveness, and gradual sophistication as users develop their investing skills.

Bottom Line

Freetrade represents more than just another investment platform—it embodies a fundamental shift in how financial services can serve ordinary people. By eliminating traditional barriers through commission-free trading, fractional shares, and intuitive design, the platform has created genuine financial inclusion for a generation that might otherwise never have started investing.

The numbers tell the story: over 1.6 million users, first-time profitability, and recognition as the UK’s best online trading platform demonstrate that accessible investing isn’t just socially beneficial—it’s commercially viable. While sophisticated investors may find the platform’s simplicity limiting, that’s precisely its strength for the target market of beginners and mobile-first users.

Freetrade’s journey from startup to IG Group acquisition validates the thesis that democratizing finance creates sustainable value for all stakeholders. For UK investors seeking a straightforward path to building long-term wealth without traditional barriers, Freetrade offers not just a product but a philosophy: investing should be accessible, understandable, and aligned with how people actually live and work in the digital age.

The platform succeeds by understanding that most people don’t need every feature—they need the right features, presented simply, at a price that doesn’t penalize small-scale investing. In achieving this balance, Freetrade has earned its position as the UK’s answer to the retail investing revolution.

Investment Warning: The value of investments can go down as well as up, so you may get back less than you invest. Past performance is not a guide to future performance.