Freetrade [2021 Review]: A UK Broker For Millennials

June 17, 2021
Brokers
" alt="" />

Make Your Dollar Go Further

Earn up to 50,000 MR points (valued at $1,000 - $1,500) with the American Express Cobalt Card, a low-fee card that offers 5x the points on all food and drinks.

Bonus: $100 USD hotel credit

Freetrade is a UK startup broker designed for millennials that is used by 200,000 customers. The company's business model consists of offering financial services through an investment platform based on a mobile app. Additionally, Freetrade complies with high regulatory standards and the accounts are covered with an excellent compensation scheme. Also, the startup offers free trade on the financial products offered by US stocks, UK stocks and ETFs. If you are interested in a UK millennial broker, Freetrade can be an excellent alternative.

Freetrade is a broker that has good characteristics in several aspects. However, we strongly believe that Capital.com is the best online trading platform because is one of the easiest and cheapest ways to trade CFDs on equities, commodities, indices, Forex pairs and cryptocurrencies anywhere in the world. Capital.com offers you zero fees on intra-day trading, a lightning-fast web platform and their proprietary Negative Balance Protection. Also, Capital.com gives you the best chance at financial success with a clean, easy-to-use interface.

We analyzed hundreds of data points relevant to the costs, benefits and features of trading with Freetrade and scored our findings on a 10-point scale across 10 distinct categories.
 FreetradeCapital.com
1 - Fees1010
2 - Signup Process1010
3 - Minimum Deposit1010
4 - Ease of Use810
5 - Deposit & Withdrawal Options810
6 - Customer Support310
7 - Asset Classes310
8 - Referral Program41
9 - Demo Account & Educational Resources210
10 - Safety & Regulation1010
TOTAL6891

Freetrade is an independent, privately-owned UK startup broker created in 2016. Freetrade is a trading name of Freetrade Limited, which is a member firm of the London Stock Exchange (LSE) and is authorized and regulated by the Financial Conduct Authority (FCA). Also, All Freetrade accounts are covered by the Financial Services Compensation Scheme (FSCS).

option

Yes, you can open an account with (broker name) if you live in Afghanistan.


Our #1-rated commission-free broker is Capital.

Now Freetrade only provides its financial services to UK residents. But, the startup is in full expansion, so if you are not a UK resident it is possible that soon the broker will progressively provide its services to other countries.

A Quick Overview of Freetrade

Here is a summary of the most important features and benefits this broker has to offer:

 FreetradeCapital.com
FEE STRUCTURE
            Zero commision broker?✔️✔️
            Fees and spreadsLOWLOW
SIGNUP PROCESSINSTANT / SAME DAYINSTANT / SAME DAY
MINIMUM INITIAL DEPOSITNO MINIMUMLOW
TRADING PLATFORM
            Website Ease of UseAVERAGEGOOD
            Proprietary web platform✔️
            Proprietary desktop platform✔️
            Proprietary mobile platform✔️
            Third Party
            (Metatrader 4 or 5, CTrader, etc.)
DEPOSIT AND WITHDRAWAL OPTIONS
            Credit/Debit Card✔️
            Bank/Wire Transfer✔️✔️
            e-Wallets/Crypto✔️✔️
CUSTOMER SUPPORTPOOR
Few channels
Slow response
STRONG
Multiple channels
Quick response
ASSETS OFFERED
            Offers Stocks✔️✔️
            Offers ForEx currency pairs✔️
            Offers Commodities✔️✔️
            Offers Bonds✔️
            Offers ETFs✔️✔️
            Offers Crypto✔️
REFERRAL PROGRAMPOORPOOR
DEMO ACCOUNT & EDUCATIONAL RESOURCES
            Demo Account✔️
Unlimited
            Educational resourcesAVERAGESTRONG
SAFETY & REGULATION
            Regulated by Tier 1 Regulator/s✔️✔️
            Regulated by Other Regulator/sNO✔️
            Fund Protection✔️

Freetrade Pros & Cons

Pros

  • Commission-free investing.
  • There are no desktop versions of the investment platform.
  • Quick account opening process.
  • Non-trading fees.
  • No deposit or withdrawal fees.
  • High regulatory standards.

Cons

  • A limited supply of financial instruments.
  • Can't use a credit/debit card.
  • No demo account.
  • Scarce educational resources.
  • It is not possible to communicate with customer support via phone.

Account Types

Freetrade offers several types of accounts with which you can invest your money either with standard investment accounts or with retirement accounts. Next, you will see the main characteristics:

General Investment Account

It consists of a standard investment account with which you can invest in stocks and ETFs following your own strategies and level of risk.

Stocks and Shares ISA Account

This type of account will allow you to enjoy the following features:

  • Tax efficiency: No UK capital gains or income tax on your investments.
  • Allowance: ‍You can put in up to £20,000 each year.
  • Long-term investment: Watch your money grow with income, dividends and capital gains accrued, tax-free over time.

Freetrade SIPP Account

This type of account allows you to invest your pension and offers you the following characteristics:

  • Tax benefits and annual contributions: ‍Contribute up to 100% of your salary and receive tax relief on contributions up to £40,000 per tax year.
  • Consolidate your pensions: Gather multiple pensions in one accessible and low-cost account.
Here's a breakdown of our 10 scoring categories, each scored out of 10 for a total of 100 points.

#1 Freetrade Fees

 FreetradeCapital.com
Zero commision broker?✔️✔️
Fees and spreadsLOWLOW
Deposit Fees?NONO
Withdrawal Fees?NONO
Inactivity Fee?NONO

At Freetrade you will not have to pay any type of fee when you make deposits and withdrawals on the investment platform. Also, the broker does not contemplate inactivity fees.

It is important that you take into account that there is a fixed monthly fee for the use of some of the accounts offered by Freetrade:

  • General Investment Account: Free
  • Stocks and Shares ISA Account: £3 monthly fee
  • Freetrade SIPP Account: £9.99 monthly fee

It is important to highlight the fact that at Freetrade you will not have to pay a fee when you buy or sell financial instruments. In addition, the broker offers a type of account in which you will not have to pay any fee to operate. For this reason, the broker gets the highest rating in this category.

Freetrade Fees Score: 10/10

How We Rank Fees

At Yore Oyster, we rank fees based on both trading and non-trading fees. Non-trading fees make a broker lose points and the commissions and spreads associated with each asset type are built into the score to determine the overall value.

#2 Freetrade Signup Process

The account opening process at Freetrade is completely online. To set up a Freetrade account, you only need a few details. Right now, you need to be a UK resident for tax purposes and have a UK bank account. Below we show you the information that you must provide when you are opening an account in Freetrade:

If You're A British Citizen:

  • Your name
  • Date of birth
  • Address
  • Nationality
  • NI (national insurance) number

If You're a UK Resident But Are Not A British Citizen:

  • Your name
  • Date of birth
  • Address
  • Nationality
  • Your relevant national identification number

The broker offers an optimized opening process with which you can operate without problems the same day you decide to open the account. In this way, you can immediately invest in the opportunities you want to exploit, and for this reason, the broker obtains an excellent rating in this category.

For your reference, if you are interested in trading immediately because you want to test the evolution of a financial instrument, but you're not in the UK, then we recommend Capital.com because there you can have an active account in just 20 minutes. Don't waste any more time and exploit your profits to the maximum!

Freetrade Signup Process Score: 10/10

How We Rank The Sign Up Process

We rank the sign-up process based on how quick and easy it is to open an account and we base our score on the following criteria:

  • The speed with which the documents can be uploaded.
  • Number of documents required.
  • The time the verification process takes.

The easier an account opening process is without unnecessary checks, and the faster the verification process, the higher the score.

#3 Minimum Initial Deposit

Freetrade does not need a specific amount as a minimum deposit. That is, you can make the decision on the amount of your initial deposit. However, note that, on Freetrade, you can only start investing with £2 and above. In this way, Freetrade's financial services are available to anyone who wants to start a trading career. For this reason, the broker is very well qualified in this category.

For your reference, in the following table, we show you other minimum deposits required by other brokers:

BrokerMinimum initial deposit
XM$5 USD
Capital.com$20 USD
PrimeXBT$10 USD/ 0.001 BTC
Plus500$100 USD

Freetrade Minimum Initial Deposit Score: 10/10

How We Rank Minimum Initial Deposit

The formula here is simple, the lower the minimum initial deposit the higher the score. We at Yore Oyster believe that everyone should be able to try out a broker without having to deposit thousands of dollars to get the opportunity to do so.

The Scoring Threshold For Minimum Initial Deposit

If a broker has a requirement for upto $100, the score here is a perfect 10, as most people can afford to invest. However, if a broker charges upto $500, it still scores a healthy 8 because most of our readers believe they can invest $500 to try out a broker's services. However, as the minimum initial deposit requirements rise above $500 most of our readers feel a bit hesitant to try out a broker due to which the score decreases.

#4 Ease of Use

 FreetradeCapital.com
Proprietary web platform✔️
Proprietary desktop platform✔️
Proprietary mobile platform✔️
Third Party Platform (Metatrader, CTrader, etc.)
Website Ease Of UseAVERAGEGOOD
Google Play Store Score (/5)4.24.4
Apple App Store Score (/5)4.74.8

Freetrade's business model is based on a mobile investment platform. For this reason, the broker does not offer a desktop or web version of the investment platform.

Freetrade APP

The interface offered by the mobile investment platform is really fast, intuitive and friendly. The platform has excellent search options with which you can see in real-time the financial instruments in which you want to invest.

Freetrade APP

In addition, you will see that the app is well-rated by its users; it has a rating of 4.2/5 in the Google Play Store and 4.7/5 in the Apple App Store. Given that Freetrade bases its business model solely on a mobile platform, it is expected that they would do a great job of it.

However, the broker cannot add up all the points in this category because you will not be able to use downloadable or web versions of the investment platform. This factor is fundamental because the desktop versions are usually much more powerful and offer a large number of tools so you can do a deeper analysis.

Freetrade Ease of Use Score: 8/10

How We Rank Ease Of Use

Ease of use comprises of the overall user experience provided by a platform. We rank this dimension according to the following criteria:

  • Intuitive Interface Across All Platforms
  • Customizability Options Available To You
  • Advanced Research Tools For Analysis

Having an intuitive interface was ranked as the number one factor by most of our users when considering a broker. The options available for customizing dashboards and statistical analysis were also very important factors according to our audience, so we factored those into the score as well.

#5 Deposit & Withdrawal Options

 FreetradeCapital.com
DEPOSIT METHODS
            Credit card deposit✔️
            Debit card deposit✔️
            Deposit by bank transfer✔️✔️
            Deposit from electronic wallets✔️✔️
            Deposit by wire transfer✔️
            Deposit by check
            Deposit by account transfer from another broker✔️
            Deposit with physical stock certificates
            Deposit by bill payment
WITHDRAWAL METHODS
            Withdrawal to credit card✔️
            Withdrawal to debit card✔️
            Withdrawal by bank transfer✔️✔️
            Withdrawal to electronic wallets✔️
            Withdrawal by wire transfer
            Withdrawal by check
            Account transfer to another broker✔️
            Withdrawal in physical stock certificates

Freetrade offers various deposit and withdrawal options without any fee. Take into account that in the investment platform you can only use the pounds as your base currency. Below you will see the alternatives that are available now:

  • Accounts from other institutions.
  • Bank transfers.
  • Deposits using Google Pay and Apple Pay.

You should know that bank transfers take between 2 and 3 days (which is common for this type of method). But, the broker allows you to make transfers instantly for a £5 fee.

Although Freetrade incorporates e-wallets, the offer is limited. There are other brokers like Capital.com, that offers many more alternatives. You can use a credit card, bank transfer, debit card, SOFORT, iDeal, Giropay, Multibanko, Przelewy24, QIWI, Webmoney, Trustly, Neteller and Skrill. For these reasons, the broker loses two points in this category.

Freetrade Deposit & Withdrawal Options Score: 8/10

How We Rank Deposit & Withdrawal Options

Having a lot of deposit & withdrawal options gives you flexibility when it comes to using or accessing your funds. We rank brokers in this dimension according to the total number of options they offer within the following three main categories of deposit and withdrawal methods, since these are the most commonly offered by most brokers:

  • Credit/Debit Cards
  • Bank Transfer & Wire Transfer
  • E-Wallets such as Paypal, Skrill and WebMoney

#6 Freetrade Customer Support

 FreetradeCapital.com
Phone Support✔️
Available more than 100 hours per week
            Phone number/s+44.203.4882539+44.20.8089.7893
Email Support✔️
Response time: 24+ Hours
✔️
Average response time: 2-24 Hours
            Email address[email protected][email protected]
Live Chat✔️✔️
Dedicated Account Manager✔️
Supported languages113

Freetrade offers the following alternatives so that you can contact the technical service support:

Freetrade Live Chat

Since Freetrade does not offer telephone support and only two alternatives so that you can communicate with the technical staff, it loses a lot of points in this category.

Freetrade Customer Support Score: 3/10

How We Rank Customer Support

Customer support plays an important role in getting much-needed help. Our criteria take into account the 3 most pivotal factors traders which include:

  • Availability of support via Live chat, phone & email throughout the week and on weekends.
  • Speed & quality of response across channels.
  • Availability of customized support such as a dedicated account manager.

Customer support is very important for most of our readers. Hence, we not only take into account all the platforms that are used to provide support but the quality of the support provided and the consumer feedback.

#7 Freetrade Asset Classes

 FreetradeCapital.com
Stock markets coveredAccess to markets from 2 countries:
✔️ USA
✔️ UK
Access to markets from 6 countries:
✔️ USA
✔️ Canada
✔️ UK
✔️ Germany
✔️ Japan
✔️ Hong Kong
Number of Stocks3,817
Indices20
Forex Pairs166
Commodities40
Bonds
ETFs
Cryptos239

Stocks

With Freetrade you can invest in more than 2,000 US stocks and UK stocks. For example, you could negotiate:

  • T-Mobile
  • Nvidia
  • Tesla
  • Domino's Pizza
  • Spirax Sarco

Gold

You can buy precious metals like gold or platinum.

ETFs

You can trade 200+ ETFs on the Freetrade investment platform. For example:

  • iShares Oil & Gas Exploration & Production
  • Invesco EQQQ NASDAQ-100
  • L&G Artificial Intelligence UCITS

Freetrade does not offer other financial instruments such as currency pairs, cryptocurrencies or bonds with which you can complement your investment portfolios and create strategies based on diversification. Take into account that the more diversified your portfolio is, the less risk you'll have. For this reason, the broker loses a lot of points in this category as well.

Freetrade Asset Classes Score: 3/10

How We Rank Asset Classes

The criteria for ranking asset classes is pretty simple and as follows:

  • Number of asset classes they offer, such as crypto, forex, stocks, ETFs and bonds.
  • The number of options provided within each asset class.

The more asset classes a broker provides, the more the chance to diversify your portfolio so the better the score. Also, the more asset options within each class, the better.

#8 Referral Program

Freetrade offers a referral program with which you can get a free share worth between £3 and £200. Below we present the terms of the referral program.

Referrer's Terms

  • A referral can’t be given to an existing or previous Freetrade customer.
  • A stock is only awarded if the referred customer has onboarded, funded their account and used your referral pass to sign up.
  • The recipient must fund within 30 days of referral link creation otherwise the award lapses.
  • Each referrer is only eligible for one free share.
  • The free share is one stock selected randomly when the referral criteria are met, from the stocks selected for this program. The probability is weighted so more expensive shares will be rarer.

While Freetrade offers a referral bonus, it loses a lot of the points in this category because it is not possible to know the value of the shares with certainty. Also, the probability is weighted so that the most expensive stocks are rarer. This makes it more likely that you will always win a £3 share instead of one worth $200.

Freetrade Referral Program Score: 4/10

How We Rank Referral Programs

Referral bonuses are the perfect way to make a little extra on the side to invest in the platform, so, obviously, the more rewards a broker gives the higher the score for this dimension. Additionally, we also take into account how difficult it is to attain these rewards.

#9 Demo Account & Educational Resources

 FreetradeCapital.com
Demo Account✔️
            Time limitUnlimitedUnlimited
            Initial Balance (fake money)$20,000
Educational ResourcesAverageStrong
            Seminars / Webinars✔️
            Educational Articles✔️
            Platform / Trading Tutorials✔️
            Online Courses✔️

Freetrade Demo Account

Freetrade doesn't offer a demo account. The fact that a platform that only offers an application version of its investment portal does not offer a demo account is very limiting. This aspect is really negative because a demo account would allow you to test the investment platform and even practice your investment strategies.

Educational Resources

Freetrade does not offer educational content that really stands out. But, there are some resources that could be useful, such as opinion articles and a space created so that all users can chat and discuss their investments and the trend of specific stocks.

Freetrade chat

The little variety of educational resources added to the fact that you will not be able to use a demo account, causes the broker to lose practically all the points in this category.

If you want to exploit your earnings to the maximum it is vital that you maintain a demo account in parallel to your real money account. It is better to test your new strategies without taking risks. If you are looking for a broker that offers you unlimited demo accounts and extensive educational content, we recommend checking Capital.com and RoboForex.

Freetrade Demo Account & Educational Resources Score: 2/10

How We Rank Demo Account & Educational Resources

The purpose of a demo account and educational resources is to train users to make informed decisions. Our crtiteria marks every broker on the quality of training that they provide beginners with. Our criteria is as follows.

  • The demo account should not have a time limit or a paper trading limit to get a perfect score
  • Educational Resources should include tutorials, webinars and online courses to ensure that anyone new to trading can quickly learn and trade profitably

#10 Safety & Regulation

 Freetrade
Regulated Broker✔️
            Tier 1 Regulators✔️
Regulated by the FCA
            Tier 2 Regulator LiscenceNO
            Other LiscensesNO
Fund protecionNO
            CoverageN/A

Freetrade is authorized and regulated by the Financial Conduct Authority (FCA). Also, all Freetrade accounts are covered by the Financial Services Compensation Scheme (FSCS). This means that in the unlikely event of Freetrade failing, the value of your assets held with Freetrade is protected by the FSCS up to a maximum of £85,000.

Freetrade not only has the energies of a broker with a modern business model, but it also complies with high regulatory standards and even offers you an excellent compensation scheme. For these reasons, Freetrade is highly rated in this category.

Freetrade Safety & Regulation Score: 10/10

How We Rank Safety & Regulation

The score depends on the number and quality of regulators that oversee the broker. If a broker is regulated by a tier-1 regulator like the Financial Conduct Authority of the UK (FCA), the Securities Exchange Commission of the US (SEC), or the Australia Securities & Investments Commission (ASIC), it scores a perfect 10. However, if it is regulated only by tier-2 regulators like the Cyprus Securities & Exchange Commission (CySEC) it scores an 8. The score for most brokers regulated by tier-3 regulators is a 6.

While researching 100+ of the world's top brokers, we’ve noticed what works and what doesn’t from the customer's point of view. That’s why our final test for any broker is to compare it to Capital, which scores 91/100 points across the 10 categories mentioned in this review, and is our top-rated broker for 2021.

Freetrade vs. Capital.com

Being a winning trader requires a solid investment plan. Take into account that the stock market is a world that is constantly changing and for this reason your strategies must adapt to the movements and innovations of the market. We recommend that you choose a broker that is your ally and that allows you to fully exploit your profits.

In this sense, this broker must allow you to diversify your portfolio internationally with the range of financial instruments that it offers while also saving you hundreds of dollars in commissions. In this section, you will find a comparison between Freetrade and Capital.com. After an in-depth market study, we consider that your best ally is Capital.com for the following reasons:

A Better customer support

You can call Capital.com at +44 20 3870 3087 or email their support team at [email protected]. You can also visit the Capital.com website and click on Contact Us for country-specific options and to enter a live chat with a Capital.com support agent. Their support team currently supports 13 different languages.

It has An Unlimited Demo Account

One factor that is essential when testing an investment platform is being able to access a demo account. In this aspect, Freetrade falls short because it does not offer one. With Capital.com you can truly test the platform since you will be able to use a paper money demo account that you can use without any restriction in time or functionality during the time you want to use it. Whit a demo account you can test each one of the tools and features of the investment portal and test your hypotheses.

76.25% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

It Provides More Educational Resources

At Capital.com you have more tools and options so you can study the market and create the best investment plans. For example, you will be able to access:

  • Free financial webinars.
  • Educational courses for traders.
  • Extensive market glossary.
  • Comprehensive CFD trading guide.
  • Cryptocurrency trading tutorial.
  • Investmate, Capital.com’s investor education app.

It's Easier To Use

While it is true that Freetrade’s investment platform is good, we think that your best option is Capital.com. It has a very stable platform, is easy to use and is intuitive. Furthermore, it has an interface that follows the best data processing standards for traders.

Capital.com platform: easy to use and intuitive

76.25% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Freetrade In Summary

  • Freetrade is a UK startup broker designed for millennials.
  • It is an independent, privately-owned UK startup Broke created in 2016.
  • Freetrade offers several types of accounts with which you can invest your money: General Investment Account, Stocks and Shares ISA Account, Freetrade SIPP Account.
  • At Freetrade you will not have to pay any type of fee when you make deposits and withdrawals.
  • The account opening process at Freetrade is completely online
  • Freetrade's business model is based on a mobile investment platform
  • Freetrade offers a referral program with which you can get a free share worth between £3 and £200.
  • The broker doesn't offer a demo account
  • Freetrade has high regulatory standards and offers an excellent fund clearing scheme.

If you are looking for a UK broker that offers investment services focused on a mobile application, Freetrade may interest you because its products are aimed at people who prefer to use their phone as a tool to manage their investments. Also, the broker offers high regulatory standards.

However, it is important that you take into account that Capital.com is a much superior broker than Freetrade because, in addition to offering a mobile version of its investment platform, it also offers a really powerful desktop version that will allow you to access news, technical indicators and several graphs at the same time.

In addition, Capital.com offers you an unlimited demo account and excellent educational material with which you can create the most profitable investment strategies. We recommend Capital.com because it is a complete broker that gives you many more tools with which you can be really sure of the market trends so that you can obtain the profitability you expect.

Canada's Best Credit Cards

Exceptional Value

Earn up to 40,000 Aeroplan Miles (valued at $800 - $1,200) with the American Express Aeroplan Card, our #1-rated card in Canada in 2021.

Bonus: Includes Buddy Pass

The Finer Things In Life

Earn up to 80,000 Membership Rewards points (valued at $1,600 - $2,400) with the American Express Platinum Card, plus a $200 annual travel credit.

Bonus: Airport Lounge Access

Low Fee, High Value

Earn up to 50,000 MR points (valued at $1,000 - $1,500) with the American Express Cobalt Card, a low-fee card that offers 5x the points on all food and drinks.

Bonus: $100 USD hotel credit