Freetrade ISA: What You Need to Know
Freetrade is a UK investment platform that launched with a commission-free stock trading proposition. Its ISA is available from the Standard plan at £4.99/month. The Basic plan (free) does not include ISA access. The Plus plan at £9.99/month adds additional features including a SIPP and a larger investment universe.
| Feature | Basic (Free) | Standard (£4.99/mo) | Plus (£9.99/mo) |
|---|---|---|---|
| ISA access | ✗ | ✓ | ✓ |
| SIPP | ✗ | ✗ | ✓ |
| Investment universe | Limited | Expanded | Full |
| Instant trades | Basic only | ✓ | ✓ |
| 3% interest on cash | ✗ | ✗ | ✓ |
How the Flat Fee Compares
At £4.99/month, the Freetrade ISA costs £59.88 per year. On a percentage basis, this equates to 0.60% on a £10,000 portfolio -- more expensive than Vanguard (0.15%) or Trading 212 (0%). On a £50,000 portfolio it equates to 0.12% -- cheaper than Hargreaves Lansdown (0.45%).
The Freetrade flat fee model becomes more cost-competitive at higher portfolio values, assuming you stay on the Standard or Plus tier.
Investment Universe
Freetrade offers access to UK and US stocks, and a growing range of ETFs. The Standard plan's investment universe covers the majority of popular stocks and ETFs a retail investor is likely to want. The full universe on the Plus plan extends this to a wider range of international equities and specialist ETFs.
Verdict
Freetrade suits investors who prefer a predictable flat monthly fee, want a mix of stock picking and ETF investing, and have a portfolio size where the flat fee is competitive (roughly £30,000 and above on Standard). For smaller portfolios, Trading 212 (zero fee) is typically cheaper. For those who also want a pension, the Plus plan's SIPP option adds meaningful value.
Open a Freetrade ISA
ISA from £4.99/month. UK and US stocks and ETFs.
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