Freetrade was launched in 2018 with the aim of making investing more accessible and affordable to the wider public. Freetrade allows you to start building a portfolio with as little as £1, solely through a smartphone app. You also have the ability to hold your shares in an ISA, so any profits and dividends are tax-free. They now have over 700,000 customers and all accounts are covered by the Financial Services Compensation Scheme.
Freetrade allows you to purchase shares in companies listed in the UK and US as well as exchanged-traded funds (ETFs). There is nothing to pay for a basic trading account other than stamp duty and fund charges for ETFs. Holding your shares in an ISA will cost you £3 a month. There are two options for depositing cash. Either set up a bank transfer or make a direct payment from a debit or credit card. You can withdraw funds from Freetrade to the same bank account by transferring from the app for free.
Key features and costs
Breakdown of Freetrade’s costs.
|ISA with plus account||Free|
|ISA with basic account||£3 per month|
|Freetrade Plus||£9.99 per month|
|SIPP||£9.99 per month|
|Standard bank transfer||Free|
|Forex||Spot rate plus 0.45%|
Being a FTSE 100 company themselves you can certainly rely on Hargreaves Lansdown and trust your money is safe with them. At Stock Pro Elite we recommend Hargreaves Lansdown as our broker of choice due to its simplicity and accessibility. The Mobile App is very well designed and can be understood easily by beginners.
The stocks and shares ISA can easily be created on your phone which you can invest up to £20k a year tax-free however if you invest more than this you can manage your other account on your phone also if required.
For those who feel more comfortable talking to a broker over the phone, Hargreaves Lansdown answers the phone promptly and provides an efficient service.
As well as the Mobile App, once your account is created (which you can also do online). You can make all your investments on a laptop/computer if preferred.
Deposits can be made as card payments, or you can also set up a monthly direct debit to keep topping up your investment portfolio. As soon as your debit card payment is authorised, your 'Amount available to invest' will be updated to reflect the payment. The cash might not actually move from your bank account for a few days, but you can invest straight away.
If you buy or sell a share online, you will be subject to our online share dealing tariff. This ranges from £11.95 to £5.95 per deal and is based on the number of share deals you placed in your HL Account in the previous month.
If you place a deal on the telephone or send them a dealing instruction through the post the dealing charge is 1% per deal with a minimum of £20 and a maximum of £50. Deals on the telephone can be placed by calling 0117 980 9800.