Freetrade vs Competitors High Level Comparison

Hey All,

I’m an FT investor located overseas but with a few UK fintech investments. I’m a member of quite a few investor forums and I see many people trying to compare FT to T212 and others.

I don’t have a FT account (or others obviously) so don’t have all ins and outs. Is anyone able to provide a very simple high level side by side cheat sheet comparison of features and costs for each so I can use that to help promote FT or just clear up BS I see on the other forums?

Nothing wrong with a bit of self promotion right :thinking::rofl:

Cheers…

Purely on cost or so you want other differences as well?

Hey thanks for asking - ideally a combo of quantitative (cost) and top qualitative (non cost) elements. Sound ok?

1 Like

FT is fine if you want to invest in common stocks. You won’t be able to invest in some of the highest growth SPAC stocks on Freetrade at all, so if that’s your cup of tea you can discard FT right away.

Just my personal opinion but TRUST is a biggy for me,nothing more than gut feeling. I also feel that Freetrade are a more ethical company in all matters

4 Likes

One thing to have a look at is the calculator https://www.freetrade.io/pricing#calculator

It’ll give a roughy idea of some cost comparisons but it’s also dependant on the kind of investor you are as it can get quite variable when comparing to the likes of HL etc.

And as other said there’s some other thoughts as well. I’ll put together by version of a comparison later today

3 Likes

Good one thanks :ok_hand:t3:

So as mentioned you can look at the calculator for a basic cost comparison between HL, AJ Bell, and ii https://www.freetrade.io/pricing#calculator

It doesnt however take into consideration some other factors including regular trades of specific stocks and funds.

The calculator takes into consideration the maximum fees but there are these few things to consider

HL offer a £1.50 trading option with ‘regular investing’, this is by Direct Debt and applies to all funds, FTSE-350 and specific trusts and ETFs

AJ Bell offer almost exactly the same service, £1.50 FTSE 350, 2000 funds and a number of trusts and ETFs

ii similar theme regular investing is £0 in all funds, FTSE 350 and trusts and ETFs

These cane be compared to Freetrades free account i think as follows

Trading fees for regular investments~:

Platform Type Investment availability cost
Freetrade Basic Account FTSE 350 (including trusts), AIM 100, ETFs (all Vanguard, iShares, Invesco) £0
HL Regular Investment (monthly DD) FTSE 350, all Funds, Specific Investment Trusts and ETFs £1.50 fee per trade, min. £25 per trade
AJ Bell Regular Investment (monthly DD) FTSE 350, 2000 Funds, Specific Investment Trusts and ETFs £1.50 fee per trade, min. £25 per trade
ii Regular Investment (monthly DD) FTSE 350, all Funds, Specific Investment Trusts and ETFs £0 fee per trade, min. £25 per trade
T212 Basic/Regular account All available £0

Some extra caveats. HL have no dealing fee for funds; ii offer one free trade per month

Trading fee on ad hoc trades

Platform Cost per trade
Freetrade £0
HL £11.95, reducing depending on number of trades per month; Funds are free to trade
AJ Bell £9.95, reduced if trading 10 or more times a month; £1.50 for funds
ii £7.99; £7.99 for funds; £19.99 other international shares (ex. US)
T212 £0

Platform fees are more difficult
In simple terms. HL, AJ Bell are percentage based fees. They charge a percentage based on the value of your holdings. the fee is only on funds not shares, and has caps depending on the account type.

Freetrade and ii are fixed fee platforms
Freetrade has no fee for a basic GIA account , £3 for an ISA, £10 for a SIPP, or £10 for Plus which includes an ISA and GIA or £17 for Plus + SIPP
ii is £10 for GIA and ISA, £20 for a GIA, ISA and SIPP

212 offers a GIA and ISA for no cost

and just to note on exchange rate costs, Freetrade is 0.45%, HL is 1%, AJ Bell is 1%, ii is 1.5%, 212 is 0%

It really starts to depend on your specific requirements because while they all have different fees you can see how for example if you only invest monthly into common stocks that HL can actually be quite cheap and cheaper than Freetrade to an extent.


But. 212 wins surely? its free for everything. Well it depends.

There are other factors to consider

Customer support
Availability
Access to exchanges
dealing options (e.g. phone)
Terms and conditions
The fuzzy trust one
etc.

They all have their benefits and drawbacks but presumably your wanting to know which of two Freetrade of 212?

Theres a few factors in my mind.

  • Freetrades terms and conditions are imo more favourable and safer than 212 due to how 212 word the handling and ownership of assets.
  • Freetrades handling of the last few weeks which saw a lot of volatility and a lot of issues accessing platforms was a big plus. Unlike other platforms (including 212) it never went down.
  • The trust factor is iffy since its hard to quantify but personal interactions with 212 have led me to decide that they’re OK for small investments but not for long term ones. I’ve had the opposite experience with Freetrade.
  • Freetrades Plus account assuming you maxed out the interest rate would actually be free through the accumulated interest on the account which nullifies some of the fees.
  • Freetrade will offer a SIPP in 4 days.

The fact of the matter is you cannot offer a service for free forever. Theres a reason robinhood pulled out, and theres a reason no one else offers free everything. Im sure 212 will monetise the hell out of their customers at some point.

But honestly and the end of the day it comes down not to how cheap something is but if you’re actually happy with how the investment platform is handling your money and investments, that should imo be one of the primary factors when looking at a platform to use.

See here on my main concern about (how i understand) their terms and conditions An Honest Critique of FreeTrade

Thats not exactly a cheat sheet sorry. I could give 5 different answers to whats the best platform to 5 different people depending on their needs.

13 Likes

Thanks hugely for this :pray:t2:

I’m going to take some time to digest this over the coming days.

Have a good one👌🏼

3 Likes

I would love to see a comparison vs platforms that are more closed to Freetrade offering:

  • zero commisisons

  • fractional shares

On top of my knowledge these are more close compatitors with Freetrade: Etoro, Robinhood, Trading212. I may make a small comparision Freetrade vs Etoro since I used both (…now only using FT of course :stuck_out_tongue: )

You forgot 0.7% Charge for Card Transaction over £2000 on Trading 212

I’m currently frustrated with the lack of a number of US shares and UK eligible ETFs in FreeTrade which are available on the other platforms but currently in the backlog of being added.

It is taking way too long for these to be added and because of this I am considering moving my ISA to IG.

This is my only complain on the platform so far in comparison with their competitors.

I’m frustrated with the lack of SPAC’s being added and I’m considering opening an account with T212 just so that i can get a chance to buy some or at least get them added at a faster rate. We are missing out big time on some of these and by the time they are added we would have missed the rise.
I guess due to the recent problems FT have had they are now concentrating on their customers issues and adding more stocks will be the least of their worries.