Popular investing app Freetrade* has expanded its product range with the launch of a new Junior Stocks and Shares ISA. The account is designed to give parents and guardians an affordable and straightforward way to invest for a child's financial future. The launch comes shortly after Freetrade’s parent company, IG, introduced its own Junior ISA product last month. As with IG, the Freetrade Junior ISA aims to make building wealth as cost-effective as possible with no account fees and zero commission on trades. In this article, we provide an overview of the new Freetrade Junior ISA, how it works, and how it compares to the wider market.
Key Features of the Freetrade Junior ISA
A Junior Stocks and Shares ISA is an investment account designed to help you save for a child's future while protecting the money from UK taxes. The money held within the account is locked away until the child turns 18, at which point it automatically converts into an adult ISA and the child gains full access to the funds.
We list the key features of the Freetrade Junior ISA below:
- Eligibility - To open the account, you must be the child's parent or legal guardian and already hold a Freetrade General Investment Account (GIA) on an eligible subscription plan. The child must be a UK resident, not hold another active Stocks and Shares Junior ISA, and, crucially, they must be born on or after 3 January 2011.
- Tax benefits - You can invest up to £9,000 each tax year on behalf of your child. Any growth or income generated within the account is completely free from UK income and capital gains tax.
- Investment choice - The platform offers access to more than 7,000 global stocks, funds, exchange-traded funds (ETFs), and bonds.
- Ready-made options - For those who prefer a hands-off approach, Freetrade offers three ready-made portfolios from the Vanguard LifeStrategy range (20%, 60% and 100% equity), each tailored to different risk appetites. The funds make it easier for beginners to build a broadly diversified portfolio without having to research and pick individual stocks.
- Easy transfer - Parents can transfer an existing Junior ISA or a Child Trust Fund to Freetrade when opening the account. Remember that a child can only hold one active Stocks and Shares Junior ISA at a time.
- App-based management - The account can be managed alongside your own investments via the Freetrade mobile app or web browser.
Freetrade Junior ISA fees explained
One of the most appealing aspects of the Freetrade Junior Stocks and Shares ISA is its straightforward pricing structure. Freetrade does not charge any monthly account fees for the Junior ISA across all of its subscription tiers, including the free 'Basic' plan. Additionally, it does not charge commission fees when buying or selling investments. However, it is important to keep in mind that foreign exchange fees will still apply if you choose to invest in international shares, which is standard practice for most UK investment platforms. FX fees on the free, 'Basic' plan are 0.99%, with lower FX fees for those who upgrade to the 'Standard' or 'Plus' plans. We explain the fees in more detail in our independent Freetrade review.
How does the Freetrade Junior ISA compare?
When choosing a provider, it is important to consider the charges, as they can eat into your child's overall returns over time. Below, we compare the cheapest Junior ISAs on the market, detailing the ongoing account fees and the costs of buying and selling investments. We also highlight the FX fees, which are the charges for converting your pounds sterling into the required foreign currency to complete the purchase.
| Provider | Minimum Investment | Annual Account Fee | Buying & Selling investments | Foreign Exchange (FX) Fee |
| Freetrade* | No Minimum | £0 for basic plan | £0 commission on shares and ETFs. | 0.99% on basic plan |
| IG | £50 lump sum | £0 | £0 commission on shares and ETFs. | 0.70% |
| Fidelity | £100 lump sum or £25 a month | £0 | £0 for mutual funds, £7.50 for one-off online share/ETFs (£1.50 if using a regular monthly savings plan). | 0.75% (reduces to 0.50% for purchases over £10,000) |
| Hargreaves Lansdown | £100 lump sum or £25 a month | £0 | £0 for online purchases (including funds, shares, and ETFs). | 0.99% (reduces to 0.50% for purchases between £10,000 and £25,000, and 0.20% for purchases over £25,000) |
| Interactive Investor (ii) | Any lump sum or £25 a month | £0 | £3.99 for UK/US shares and funds. Regular monthly investing is free. | 0.75% (on the standard Core plan) |
Is the Freetrade Junior ISA right for you?
Deciding whether the Freetrade* Junior ISA is the right product for your needs will depend on your personal preferences and investing experience. The absence of account fees and commission trading fees makes it an excellent, low-cost option. The addition of ready-made portfolios also makes Freetrade highly accessible for beginners who may feel overwhelmed by picking their own stocks. For more information on Junior ISAs, including a detailed summary of the best Junior Stocks and Shares ISAs in the UK, check out our article 'Best Junior Stocks and Shares ISAs'.
When investing, your capital is at risk and you may get back less than invested. Past performance doesn’t guarantee future results.
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