Yes, you can consider Freetrade to be trustworthy. Freetrade is authorised and regulated by the Financial Conduct Authority (FCA) in the UK. Meanwhile, all Freetrade accounts are covered by the Financial Services Compensation Scheme (FSCS), especially now they are owned by IG.
I’ve been following Freetrade since its inception and test out the app every time they have a big upgrade or product release. Over the years Freetrade has won a couple of Good Money Guide Awards. In 2019 Freetrade won ‘People’s Choice’ and in 2012 ‘Best Commission Free Stockbroker’. I first interviewed Adam in 2018 and since then Freetrade has come along way.
How Does Freetrade Compare To Other Platforms?
While Freetrade offers a wide selection of stocks, it doesn’t offer as many as other more established platforms like Hargreaves Lansdown and Interactive Investor.
Looking at the full list of stocks, which can be found here, many small-cap and penny stocks are not available on the platform. So, if you like to invest in these types of stocks, Freetrade may not be the best platform for you.
It’s a similar story with account types. With Freetrade, it’s not possible to open a Lifetime ISA, Junior ISA, or Junior SIPP. If you’re looking to invest within one of these vehicles, you will need to go with another broker.
How Do You Open An Account With Freetrade?
Opening an account with Freetrade is relatively straightforward. Here’s how it works:
- Step 1: Download the app
- Step 2: Enter your details (you will need your National Insurance number)
- Step 3: Choose the plan that is best for you
- Step 4: Transfer funds into your account
Who are Freetrade’s Main Competitors?
Some recommended alternatives include:
- Trading 212 – It also offers commission-free stock trading
- Hargreaves Lansdown – It has more investment options than Freetrade
- AJ Bell – It’s another platform that offers a wide range of investments
- Interactive Investor – It offers a flat fee so can be cost-effective for those with large portfolios
- Moneybox – It’s a good platform for beginners
