Freetrade^ was acquired by online trading giant IG Group in a £160 million deal. With this change in ownership, the platform is expected to undergo a series of updates, from new subscriptions to the introduction of new asset classes. The big question is whether this new direction will be enough to persuade loyal Trading212 users to make the switch.
What is Freetrade?
Founded in 2016 by Adam Dodds and Davide Fioranelli, Freetrade built its reputation as a commission-free, mobile-first neobroker. Its mission was to democratise investing by making it simple and accessible.
The IG Group takeover was a controversial moment for the platform’s community. Many early supporters had invested through crowdfunding during the company’s peak, when it commanded a £650m valuation in 2021. The eventual sale was at a steep discount, a pill difficult to swallow for loyal backers. Despite the change in ownership, IG has stated Freetrade will operate as a standalone business with its existing management team, led by co-founder Viktor Nebehaj. The new parent company plans to invest heavily to “fast-track the rollout of new products and features.”
The Freetrade Changes
Freetrade’s model has always been built around subscription tiers, and the post-acquisition revamp has further solidified this approach.
- Basic (free): This tier now includes access to a Stocks & Shares ISA, which was previously a paid-for feature. Users get access to a universe of over 6,500 UK, US, and EU stocks and ETFs, including fractional shares. UK Treasury bills are also available. The foreign exchange (FX) fee on non-GBP trades remains at 0.99%.
- Standard (£4.99/month): This plan is designed for greater diversification. It adds access to a curated selection of mutual funds and UK gilts. FX fees are reduced to 0.59%. This tier also offers an improved interest rate on uninvested cash.
- Plus (£9.99/month): The premium tier includes everything from the Standard plan, plus a Self-Invested Personal Pension (SIPP). It offers the lowest FX fee at 0.39% and the highest interest rate on uninvested cash.
A major change for all plans is the ability to earn interest on uninvested cash. The rate ranges from 1% AER on the free tier (on up to £1,000) to as much as 5% AER on up to £3,000 in the Plus plan. This shift towards a broader, subscription-based ecosystem is designed to create a predictable revenue stream for IG, but it leaves users to weigh whether the paid plans justify their cost.
How Does It Compare With Trading212?
Both Trading212 and Freetrade offer commission-free trading, fractional shares, and ISAs. But beyond that, their paths diverge.
Features & Tools
Freetrade maintains a deliberately stripped-back approach. The app is clean and functional, but its minimalist design means it lacks a lot of the advanced features and research tools found on other platforms. Freetrade’s key differentiators are its access to mutual funds, gilts, and a SIPP.
Trading212, on the other hand, provides a feature-rich experience at no cost. It has built a powerful ecosystem around core investing, with a strong emphasis on automation and community. Key features include:
- Investment Pies & AutoInvest: This flagship feature allows users to create diversified portfolios (“Pies”) and automatically invest in them on a set schedule. It simplifies the investment process and allows for easy portfolio rebalancing.
- Community: The platform has a vibrant community where users can share their “Pies,” discuss strategies, and learn from one another.
- Interest: Earn 4.05% AER on GBP deposits. You can earn interest in 13 global currencies.
- Cashback Debit Card: Tied to account balances, the cashback debit card is a unique perk that provides a tangible benefit to investors.
- Lower FX Fees: Trading212’s FX fees for its free Invest and ISA accounts are highly competitive, often at 0.15% for US stocks.
Trading212 also offers a separate CFD (Contract for Difference) account. While high-risk and separate from the long-term investing side, it remains a key differentiator for more experienced traders.
Fees and Charges
The main difference in cost is the fee structure. Freetrade charges a flat monthly fee for its advanced features, while Trading212 operates on a commission-free model with no platform or subscription fees for its core accounts.
| Feature / Fee | Freetrade (Basic) | Freetrade (Plus) | Trading212 (Invest/ISA) |
|---|---|---|---|
| Monthly Fee | £0 | £9.99 | £0 |
| UK Stocks | Free | Free | Free |
| Foreign FX Fee | 0.99% | 0.39% | 0.15% |
| SIPP | No | Yes | No |
| Mutual Funds | No | Yes | No |
User Experience and Support
Freetrade’s app is widely praised for its simplicity and clean interface, making it an ideal choice for beginners seeking a no-fuss experience. However, its lack of advanced charting and research tools can be a drawback for more engaged investors. While customer support has typically been limited to email, the company has recently introduced an in-app chat for all Freetrade clients.
Trading212’s app is more feature-rich but can be overwhelming for absolute beginners. The platform is praised for its powerful charting tools and a wide range of order types, offering greater control. It has a strong reputation for fast, responsive support.
Verdict
The IG Group acquisition has undoubtedly strengthened Freetrade’s position, allowing it to add valuable features like ISAs to its free plan and mutual funds to its paid tiers. The ability to access a SIPP provides a major benefit for long-term retirement planners.
However, the subscription model feels like a step backward in a market where rivals like Trading212 and Robinhood offer a richer, more powerful, and feature-complete platform for free. Trading212’s extensive tools, community features, and lower FX fees make it a more compelling choice for the majority of investors, from beginners to those seeking more advanced control.
Unless IG has even bigger changes in the pipeline, Freetrade risks looking like a simplified, cut-down version of what investors can already get elsewhere at a lower cost. For now, Trading212^ remains the more competitive and feature-rich option for the modern UK investor.