Are you confused about whether to choose Trading 212 vs Freetrade as a broker for your investing needs?
In this side-by-side comparison, we analyse Trading 212 vs Freetrade to help you understand how these apps compare on some of the most common features and make a better-informed decision about the best broker for you.
Below, you’ll find the pros and cons of each broker, as well as a comparison table that features the different fees charged, the financial instruments supported, the regulation, and more. Keep reading!
Trading 212 vs Freetrade: In a Nutshell
Commission-free stock and ETF trading
Trading 212 is a fintech based in London that aims to democratize the entire investment process through a simple web and mobile application.
The company aims to do this by allowing its more than 15 million users to invest in over 10,000 stocks and ETFs, Forex, commodities, CFDs, and cryptocurrencies.
You will find commission-free stocks and ETFs trading, fractional shares, and even an automatic investment system. New users get one free share worth up to €100 (promo code IITW). On the downside, it shows limitations regarding available products.
UK investors looking for a cheap ISA/SIPP
Freetrade is a commission-free UK stockbroker. It is an excellent choice for investors looking to build a long-term portfolio of stocks and ETFs with low fees.
They operate under a freemium (free+premium) business model. As you go up the pricing plans, users get extra features, such as ISA and SIPP, 3% interest on cash, and more.
Although Freetrade is only available for UK residents, the company plans to expand to Europe (you can follow the all-new developments here).
Pros and Cons
Trading 212
Pros
- Commission-free Real Stocks and ETFs trading
- AutoInvest & Pies feature
- Fast and easy account opening process
- Demo account
- Top Tier Regulators
- One free share worth up to 100€ using the promo code "IITW"
Cons
- Limited product portfolio (no Options, Bonds, Mutual Funds or Futures)
- No relevant Fundamental tools
- Spreads on Forex CFDs may be high in certain trading hours
- Foreign exchange fees (0.15% and 0.50% in “Invest” and “CFDs” accounts, respectively)
Freetrade
Pros
- Free stock and ETF trading
- GIA, ISA, and SIPP
- No inactivity, account, or withdrawal fees
- No minimum deposit
- Great community (forum) – where users share ideas and learn about investing
- Nice and user-friendly app
Cons
- Limited asset classes (only stocks, ETFs, REITs, and investment trusts)
- Limited research and education
- Graphs and portfolio tracking still need some development
- No web or desktop platform yet (Beta version in Plus)
- No phone support – however, live chat support is very fast and efficient
- No 24/7 support
Trading 212 vs Freetrade: Side-by-side Comparison
- General Information
- Founded in
- Demo Account
- Account Minimum
- Interest on unninvested cash (annually)
- Products
- Stocks
- ETFs
- Bonds
- Funds
- Options
- Futures
- CFDs
- Leverage Products
- Forex
- Cryptocurrencies
- Commodities
- Fees
- US stocks
- EU stocks
- ETFs
- Cryptocurrencies
- Custody Fee
- Inactivity Fee
- Withdrawal Fee
- Connectivity Fee
- Currency Conversion Fee
- Security
- Regulators
- Investor Compensation Scheme(per person, per institution)
Franklin is a CFA Level III Candidate with 3 years of experience in Wealth Management as a Fund Research Analyst and the Host of the "Edge Over Hedge" YouTube Channel.
