Freetrade vs Trading 212: what’s the difference?

Summary

• Freetrade focuses on simplicity, accessibility, and commission-free trading for novice investors.

• Trading 212 offers a broader range of services, including forex, contract for difference (CFDs), gold, and cryptocurrencies.

• Getting advice from a financial adviser is beneficial if you need guidance with your investment strategy.

What is the difference between Freetrade and Trading 212?

When comparing Trading 212 and Freetrade, there are notable differences.

Freetrade focuses on simplicity and accessibility as it aims to make investing accessible to everyone, and offers commission-free trading with a user-friendly app designed for investors.

The company emphasises transparency, aiming to eliminate hidden fees and complexities.

In contrast, Trading 212 offers a broader range of services, including forex trading and contracts for difference (CFDs), catering to more experienced investors and traders.

Trading 212's platform is designed to provide a comprehensive trading experience with advanced tools and options.

Trading 212 vs Freetrade: what services do they provide?

Both companies offer services tailored to distinct types of investors.

Let’s break down what each platform specialises in and their regulatory status.

Trading 212 services

Trading 212 provides a variety of services, including investing in:

• Stocks and exchange-traded funds (ETFs)

• Forex and CFDs

• Gold

• Cryptocurrencies

• Fractional shares

Trading 212 is regulated by the Financial Conduct Authority (FCA) and covered by the Financial Services Compensation Scheme (FSCS), which ensures some protection for investors. 

Freetrade services

Freetrade focuses on making investing straightforward and accessible, allowing people to invest in:

• Stocks and ETFs

• Investment trusts

• Fractional shares

Freetrade is also regulated by the FCA and covered by the FSCS, offering investors peace of mind regarding the security of their funds.

Trading 212 vs Freetrade: how do the fees compare?

Fees are a crucial consideration for any investor.

Freetrade and Trading 212 structure their fees differently, catering to various investment styles and preferences.

Trading 212 fees

Trading 212 is known for its low-cost structure:

• Price: Trading 212’s fees generally falls into the low-end cost bracket.

• Fees: Trading 212 offers commission-free trading on stocks and ETFs. For forex and CFDs, there are spreads and overnight fees but no minimum deposit. There are no fees for buying and selling shares in the same currency as the account, with a 0.15% FX fee for trades in other currencies within an individual savings account (ISA) and a 0.5% FX fee for CFDs.

• Minimum investment: £1.

• Maximum investment limits: There are no explicit maximum investment limits, allowing flexibility for investors.

Freetrade fees

Freetrade also aims to keep costs low for its users:

• Price: Freetrade’s fees are in the low-end cost bracket.

• Fees: Freetrade’s basic account offers commission-free trading with a 0.99% FX fee.

• Its Standard account costs £5.99 per month and includes an ISA and a 0.59% FX fee. Freetrade’s Plus account, which provides access to additional stocks and features, charges £11.99 per month and a 0.39% FX fee. It includes an ISA and self-invested personal pension (SIPP).

• Minimum investment: £1 for regular stocks and ETFs, £10 for CFDs. CFDs are higher-risk assets that allow traders to speculate on asset price movements without owning the underlying asset. They involve higher risk due to leverage and market volatility.

• Maximum investment limits: There are no explicit maximum investment limits.

Trading 212 vs Freetrade: who has better customer service?

Customer service is a vital aspect of any financial service, ensuring users can resolve issues and get assistance when needed.

Trading 212 customer service

Trading 212 users can reach out via live chat and email. There is no phone support, but the live chat is responsive and efficient for urgent queries.

Freetrade customer service

Freetrade users can contact support through in-app chat and email. There is no phone support, but the in-app chat is known for being helpful and responsive.

Trading 212 vs Freetrade: which is better reviewed?

User reviews provide insight into investors' overall satisfaction and experiences using each platform.

Trading 212 reviews

On Trustpilot, Trading 212 has an ‘excellent’ score of 4.6/5 from almost 30,000 reviews.

More than three-quarters of reviewers gave the platform 5 stars, flagging the app’s easy-to-use design and accessibility for beginners.

Freetrade reviews

On Trustpilot, Freetrade is rated ‘great’ with a score of 4/5 from around 4,000 reviews. Two-thirds of these reviews are 5 stars, with many remarks commending the app’s user-friendliness and customer support.

Can you open accounts with Trading 212 and Freetrade?

Both platforms offer straightforward account opening processes through their apps.

Investors should be aware of potential capital gains tax (CGT) liabilities, and both platforms provide tax documents to help users keep track of their tax obligations.

What are the advantages and disadvantages of Trading 212?

The pros of using Trading 212

• It offers a broad range of investment options, including forex and CFDs.

• You can benefit from low-cost trading with no commissions on stocks and ETFs.

• It has a user-friendly platform with advanced trading tools.

The cons of using Trading 212 

• There is no phone support for customer service.

• Forex and CFD trading involves higher risk and is not suitable for less experienced investors. 

• Premium features require a subscription.

What are the advantages and disadvantages of Freetrade?

The pros of using Freetrade

• It offers a simple, user-friendly interface suitable for beginners.

• You can get commission-free trading on stocks and ETFs.

• It has a transparent fee structure with no hidden costs.

The cons of using Freetrade 

• There are more limited investment options compared to Trading 212.

• There is no phone support for customer service.

• Some advanced features require a subscription.

Trading 212 vs Freetrade: which is better for you?

Choosing between Trading 212 and Freetrade depends on your investment goals and experience level.

Trading 212 is ideal for more experienced traders looking for a wide range of investment options, including forex and CFDs.

Freetrade is suitable for beginners or casual investors seeking a straightforward, low-cost platform for trading stocks and ETFs.

Get expert financial advice

Trading 212 and Freetrade offer unique advantages and cater to many types of investors.

By understanding their key differences, services, fees, customer service, and user reviews, you can decide which platform aligns best with your financial goals. 

If you want a broader spectrum of investment options, Trading 212 would be the way to go, while Freetrade is ideal if you’re after a simple, easy-to-use platform that focuses on shares and ETFs with zero commission.

Unbiased can match you with a financial adviser for expert financial advice tailored to your investment goals.