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Overview

Freetrade is a mobile-based investment platform that allows users to invest in stocks and ETFs without paying any commissions. It was launched in the United Kingdom in 2018, with the primary goal of making investing accessible and affordable for all. As we enter 2022, many investors are wondering whether Freetrade is the right platform for their investing needs. In this comprehensive review, we will explore Freetrade's features, investment options, pricing, and security measures, as well as discuss its pros and cons to help you make an informed decision.

Account Types and Investment Options

Freetrade offers various account types to cater to different investor needs. Users can choose between the following account types:

Basic Account

This is Freetrade's standard account, which allows users to invest in stocks and ETFs without any commissions. Investors can build their portfolio by investing in individual stocks, or they can choose from a curated selection of ETFs to invest in diversified markets.

ISA Account

The Freetrade ISA (Individual Savings Account) allows UK-based investors to trade tax-efficiently. Capital gains and dividends earned within an ISA are not taxable. Investors can fund their ISA with up to £20,000 per year per the current tax year's annual allowance.

Freetrade Plus

This subscription-based option costs £9.99 per month and offers additional benefits, such as access to a wider range of stocks, ETFs, REITs, and bonds, as well as priority customer support and better interest rates on cash balances.

Freetrade provides users with a variety of investment options, including:

Individual stocks from UK and US markets
Exchange Traded Funds (ETFs) covering various sectors and regions
UK-listed investment trusts
Real Estate Investment Trusts (REITs) [Freetrade Plus members only]
Bonds, including corporate and government bonds [Freetrade Plus members only]

Fees and Pricing

One of Freetrade's main selling points is its commission-free trading. While users can buy and sell stocks and ETFs without any fees, there are still some costs associated with the platform:

Foreign exchange fee: When buying US stocks, users must convert their GBP to USD, incurring a 0.45% foreign exchange fee.
Instant orders: Users can place instant orders for a fee of £1.00, which executes the trade immediately. However, users can also place free basic orders, which are executed at the end of the trading day.
Account fees: The ISA account carries a £3.00/month administration fee. Freetrade Plus subscribers are charged £9.99/month, while the basic account is free.
Dividend reinvestment: Freetrade charges a £2.00 fee for each dividend reinvestment.
Bank transfers: Instant bank transfers incur a £5.00 fee. Traditional bank transfers are free.

Platform Features and Ease of Use

Freetrade's platform is designed for simplicity and ease of use, which is particularly appealing to beginner investors. With its user-friendly mobile application, investors can easily navigate through the platform and perform the following tasks:

Open and manage accounts
Search for stocks, ETFs, and other investment options
Execute commission-free trades
Monitor and manage their portfolio
Access news, insights, and other resources

The application's interface is sleek and straightforward, allowing users to quickly find the information they need. While advanced investors may find it lacking in terms of in-depth research tools and metrics, Freetrade is suitable for beginners and investors looking for a convenient, low-cost platform.

Customer Support

Customer support is an essential aspect of any investment platform. Freetrade provides several support resources for users, including:

An in-app chat feature for real-time assistance
An online help center with articles and guides to help users navigate the platform
Email support
Freetrade Plus subscribers receive priority support through the in-app chat feature

Some users have reported longer response times during peak trading hours or periods of high demand. However, Freetrade's support team is generally responsive and helpful in addressing user queries and concerns.

Security and Regulation

Security is crucial for any investment platform to ensure the safety of user information and funds. Freetrade has implemented the following security measures and practices:

Bank-level encryption to protect user data
Two-factor authentication (2FA) for added account security
Segregation of client funds from company funds in separate bank accounts
FSCS (Financial Services Compensation Scheme) protection of up to £85,000 in case of platform insolvency
Regulation by the Financial Conduct Authority (FCA) in the UK

These security measures ensure that users can confidently invest with Freetrade, knowing that their data and investments are well-protected.

Pros and Cons

To summarize, here are the pros and cons of Freetrade as an investment platform:

Pros:

Commission-free trading for stocks and ETFs
Simple and user-friendly mobile application
Suitable for beginner investors
Tax-efficient investing through ISA accounts
Good range of investment options
Transparent fee structure

Cons:

Limited research tools and metrics
No desktop platform
The platform only supports GBP
Fees for instant orders, dividend reinvestment, and instant bank transfers

Conclusion

Freetrade is an excellent platform for beginner investors and those looking for commission-free trading. The mobile application is user-friendly, and the investment options offered cover a wide range of markets and sectors. While advanced investors may find the limited research capabilities and lack of a desktop platform to be drawbacks, Freetrade's simplicity and accessible pricing make it an attractive option for many investors in 2022.

Freetrade 2022 Review: A Comprehensive Review of Freetrade Investment Platform f

Overview

Account Types and Investment Options

Basic Account

ISA Account

Freetrade Plus

Fees and Pricing

Platform Features and Ease of Use

Customer Support

Security and Regulation

Pros and Cons

Conclusion

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