FinecoBank share dealing review

15 min Read Published: 06 Oct 2021

Fineco Bank LogoWho is FinecoBank?

FinecoBank was founded in Italy in 1999 and launched in the UK in 2017, providing its customers with access to trading, banking and investment services from a single multicurrency account. It manages around £87bn of assets for 1.4m clients and in 2020, FinecoBank spent around 7m Euros on a marketing campaign with the aim of growing its services in the UK. FinecoBank - often shortened simply to Fineco - is one of a number of specialist low-cost share-dealing platforms available to UK investors and in this review, we take a closer look at the products it offers, how much it costs and how it compares to the likes of iWeb, Hargreaves Lansdown and Freetrade.

FinecoBank key features

FinecoBank has a wide-ranging offering giving its customers access to:

  • UK, US and EUR shares and ETFs
  • CFD trading
  • Forex trading
  • Funds
  • Bonds
  • Options
  • Stocks and Shares ISA
  • Free banking
  • Free online currency exchange

How does FinecoBank work?

Customers can open an account with FinecoBank in approximately 15 minutes by completing a few details online. Customers will need to provide their full name, email address, telephone number and select whether they want a single or joint account.

Customers are then required to provide their date of birth, place of birth, full UK address and tax residence. Applicants will then need to confirm whether or not they have any other tax residencies as well as providing a national insurance number and details from an official document such as a driving licence or passport.

Once completed, FinecoBank will send applicants a text with the account opening password. The account opening password enables new customers to digitally sign the account opening contract and it can also be used to recover and complete any saved application forms.

FinecoBank share dealing review

FinecoBank's online share dealing platform allows investors to trade a number of stocks, ETFs and bonds from as little as £2.95 per trade. Additionally, investors can gain access to thousands of CFDs, options, commodities and futures. Fineco allows customers to invest with leverage, a way of investing that allows users to effectively borrow money with the aim of amplifying investment returns. Leveraging can significantly increase the risk of losing money, a point that is made clear on FinecoBank's own website "CFDs are complex instruments and present a significant risk of losing money quickly due to financial leverage. 65.66% of retail investor accounts lose money due to CFD trading with FinecoBank".

Fineco bank share dealing

FinecoBank share dealing costs

Stock Markets Commission
UK £2.95 per trade
USA $3.95 per trade
GER, ITA, FRA €3.95 per trade
CAN TSX C$10.00 per trade
SPAIN 0.19% fee (minimum fee of €14.95)
SWITZERLAND 0.19% fee (minimum fee of CHF24)
FINLAND €9.00 per trade plus 0.19% fee (minimum fee of €2.95 - maximum fee of €19.00)

FinecoBank Stocks and Shares ISA review

Customers can invest up to £20,000 in a FinecoBank Stocks and Shares ISA each tax year, allowing them to invest in a variety of funds, UK equities, bonds and exchange traded funds (ETFs). FinecoBank is running a promotion where investors pay 0% platform fees on its Stocks and Shares ISA until the end of the 2021/22 tax year, so long as they open an account before 30th September 2021. There is a maximum charge of 0.25% and there is a cap of £2.95 per month for assets held in either shares, ETFs or bonds. We explain the costs in more detail below.

Fineco bank ISA

FinecoBank Stocks and Shares ISA costs

Fee type Commission
Funds - Annual Stocks and Shares ISA platform fee 0.25% - £100 and £250,000

0.15% - £250,001 and £1m

0.05% - £1m and £2m

Free - Anything over £2m

Funds - Dealing FREE
Funds - Transfer out £0.00
Shares, ETFs and Bonds - Annual Stocks and Shares ISA platform fee 0.25% (Max £2.95 per month)
Shares, ETFs and Bonds - Dealing As per above tables
Shares, ETFs and Bonds - Transfer out £0.00

The funds platform fee is calculated and paid monthly. The monthly fee is calculated based on the total value of the portfolio in funds on the last day of each month. The shares, ETFs & bonds platform fee will be calculated and paid monthly. The monthly fee is calculated based on the value of your portfolio in listed products on the last day of each month. It is debited from the account within the first three working days of the following month.

FinecoBank banking services review

FinecoBank provides free online banking for its customers automatically and the account includes a free contactless debit card, sent in the post when you sign up. A FinecoBank account is required in order to invest via Fineco. Customers can use their Fineco account to convert money into multiple currencies in real-time without paying expensive currency conversion fees. Additionally, customers can set budgets and track their spending using the 'MoneyMap' feature on the FinecoBank mobile app. Perhaps the best thing of all about Fineco is the ability to bank, trade and invest, all from one single multi-currency account.

Fineco Banking services

FinecoBank banking costs

Service Fee
Contactless debit card FREE
UK ATM withdrawals and payments FREE
EU ATM withdrawals and payments FREE
UK bank transfers FREE
SEPA bank transfers FREE
EUR SEPA direct debit FREE
Budget tracker FREE
Online currency exchange FREE (Spread is applied)

FinecoBank fees and charges

It is free to bank with Fineco and it doesn't charge any monthly account fees or exit fees. It charges a platform fee of up to 0.25% for its Stocks and Shares ISA and £2.95 per UK trade ($3.95 for US shares), making it one of the cheapest online platforms for share dealing. Below, we list all other fees charged by FinecoBank.

CFDs (Shares) costs

Shares CFDs Commission
UK CFDs (Shares) £0.00 with no added spread
USA CFDs (Shares) £0.00 with no added spread
EUR CFDs (Shares) £0.00 with no added spread

CFDs (Indices) costs

Indices CFDs Commission
FTSE100 0.6 pips
Germany30 0.6 pips
NASDAQ 0.6 pips
S&P 500 0.4 pips
Dow Jones 1.0 pips

CFDs (FX) costs

FX CFDs Commission
EUR/USD 0.8 pips
GBP/USD 1.0 pips
EUR/GBP 1.0 pips

CFDs (Commodities & Futures) costs

Commodities & Futures CFDs Commission
Light Crude Oil 0.2 pips
Gold 0.3 pips

Options costs

Option type Up to $499 $500 - $9,999 $10,000 +
S&P, DJ, Nasdaq, Russell, VIX $3.95 per lot $2.95 per lot $1.95 per lot

Bond costs

Bond type Commission
Euronext, MOT, EuroMOT, Hi-MTF, EuroTLX £6.95 per order

FinecoBank Pros and Cons

Pros

  • Low commission and trading fees
  • No minimum deposit
  • Mobile app available
  • Multi-currency banking without paying expensive currency conversion fees

Cons

  • Can only deposit money by bank transfer
  • Verification process can be complex
  • Lack of educational tools

FinecoBank customer reviews

FinecoBank is rated as 'Great' on independent review site Trustpilot with an average score of 4.2 out of 5.0 from almost 300 customer reviews. Its app is rated 4.5 out of 5.0 on Google Play and 4.6 out of 5.0 on the Apple App store. Many of the positive reviews cite friendly and helpful customer service and many mention the low dealing fees. Of the negative reviews, some customers find the account opening process complex and question why there are so many codes, pins and passwords in order to finalise the account opening process.

Is FinecoBank safe?

While it is relatively new to the UK market, FinecoBank is well established, having been founded in Italy over 20 years ago. FinecoBank operates as a commercial bank within the UK and so is regulated by the Financial Conduct Authority. Customers are also covered up to £85,000 by the Financial Services Compensation Scheme (FSCS)

FinecoBank alternatives

Below, we take a look at some popular alternative share dealing platforms and apps and see how they compare to FinecoBank.

FinecoBank vs Hargreaves Lansdown

FinecoBank is cheaper than Hargreaves Lansdown*, both in terms of how much it charges for share dealing and its annual platform fee. Where Hargreaves Lansdown does excel, however, is the number of products it offers, allowing its customers to invest in a Self Invested Personal Pension (SIPP), Lifetime ISA and Cash ISA, in addition to its general investing account and Stocks and Shares ISA. Hargreaves Lansdown also offers an 'Active Savings' account which allows customers to easily switch between the competitive savings accounts in the UK, all from a single online account. Hargreaves Lansdown provides a number of online guides and tools that can give investors the courage to build a well-balanced and diversified portfolio; something that is lacking with FinecoBank. Fineco provides the cheapest option for experienced investors who are not interested in other investment products such as a SIPP or Lifetime ISA. Those wanting a better product selection and those who may need a little guidance may be better paying slightly more and opting for Hargreaves Lansdown. If you are looking for CFD trading then Hargreaves Lansdown does not currently offer it to new customers.

FinecoBank vs iWeb

FinecoBank provides banking services to its customers whereas iWeb customers can only use its platform to invest in either a Stocks and Shares ISA, Share dealing account or Self Invested Personal Pension (SIPP). It is free to open an account with FinecoBank, whereas iWeb charges new account holders £100 to open an account. iWeb does not charge an annual platform fee, whereas FinecoBank charges investors up to 0.25% and share dealing is cheaper via FinecoBank. Both platforms offer a similar type of hands-off investing solution and so for most investors it is likely to come down to cost. We have therefore provided a simple cost comparison table below where we compare the main fees and charges of each platform side by side. iWeb does not offer CFD trading.

FinecoBank vs iWeb cost comparison

FinecoBank iWeb
Account opening fee £0.00 £100
Annual Platform Fee 0.25% No charge
Fund switches FREE £5 per trade
Share dealing £2.95, $3.95 or €3.95 per trade £5 per trade
Mobile app YES NO
Exit fee £0.00 £0.00

FinecoBank vs FreeTrade

Freetrade is a low-cost share-dealing app that allows investors to trade stocks and shares on the go. It is free to open an account with Freetrade and investors can start from as little as £1. Perhaps its biggest draw is that investors can trade commission-free, compared to a minimum of £2.95 per trade with FinecoBank. FinecoBank charges an annual platform fee of 0.25% for its Stocks and Shares ISA, whereas Freetrade charges a flat fee of £3 per month. Additionally, Freetrade allows investors to contribute to a Self Invested Personal Pension (SIPP) and new users can get a FREE SHARE worth up to £200 via this offer*.

FinecoBank Summary

FeinecoBank is likely to suit experienced investors that may benefit from combining their trading, investing and bank accounts into one simple online platform or mobile app. The products that FinecoBank offers are a little limited and particularly surprising is the omission of a Self Invested Personal Pension (SIPP). It offers a cheap and simple way to trade shares and invest, however, it is worth remembering that there are cheaper ways for investors to buy and sell shares. Those solely interested in share dealing may want to look at specialist share dealing apps such as Freetrade as it offers commission-free trading in addition to a free share worth up to £200 for new customers. Those new to investing may be better avoiding share-dealing apps altogether and looking at well-established platforms such as Hargreaves Lansdown or AJ Bell as they provide invaluable resources for beginner investors including interactive tools, calculators and best-buy guides.

 

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