Freetrade vs Trading 212: Which is best for low-cost trading?

3 min Read Published: 23 Feb 2022

Freetrade vs Trading 212If you are looking for a low-cost way of investing in shares, investment platforms Freetrade and Trading 212 offer commission-free trading and access to a variety of investment types. In this article we compare Freetrade and Trading 212, detailing the advantages and disadvantages of both to help you decide which is the best share dealing app for you.

We also highlight how you could get a free share worth up to £200* with our reader offer with Freetrade (capital is at risk).

Freetrade vs Trading 212 - which is better?

Freetrade Trading 212 
Services Investing in shares, ETFs and investment trusts

Fractional shares

User forum

Investing in shares, ETFs, CFDs, gold and cryptocurrencies

Fractional shares

Video guides

Community forum

Products ISA, GIA, SIPP Trading 212 CFD

Trading 212 Invest

Trading 212 ISA

Trading 212 Pro Account

Minimum investment £1 £1 (£10 for CFDs)
Fees Basic account - free

Freetrade Plus - £9.99 per month (Includes ISA)

ISA with basic account - £3 per month (Free share worth £25 when you sign up - see below)

SIPP - £9.99 per month

No platform charge for ISA

No fees for buying and selling shares in same currency as account

0.15% fee for trades in other currencies

Customer reviews (Trustpilot) 4.3/5.0 4.5/5.0
Money to the Masses offer Receive a free share worth up to £200* when you sign up for a basic account n/a

Freetrade vs Trading 212 - services

While Freetrade allows users to invest in shares, ETFs and investment trusts, Trading 212 has a wider range of more esoteric investment types, including CFDs, gold and cryptocurrencies. It also offers informative video guides to help investors navigate what they should be adding to their portfolios and the timings of buying and selling. However, both Freetrade and Trading 212 have active user forums, which also provide some guidance.

Freetrade vs Trading 212 - products

Freetrade outstrips its rival in terms of the tax wrappers it has available, with a SIPP as well as an ISA. They each have standard investment accounts, Freetrade with its "basic account" and Trading 212 with its "Invest" option. Trading 212 then also has an ISA and a more specialist CFD account, as well as a "Pro" account, aimed solely at highly experienced investors. It is worth noting that, with the risk levels involved, CFDs aren't going to be suitable for the majority of investors, particularly beginners, with Trading 212 itself warning that 68% of its investors lose money trading CFDs.

Freetrade vs Trading 212 - minimum investment

The appeal of both Freetrade and Trading 212 is the low minimum investment required for each, which makes it accessible to those looking to dabble without making a big initial financial commitment. Both allow investors to open an account with as little as £1, although Trading 212 CFD accounts require a minimum deposit of £10.

Freetrade vs Trading 212 - fees

A key difference between the charges from Freetrade and Trading 212 is that Trading 212 doesn't level a platform charge on its ISA, unlike Freetrade, which has a monthly fee of £3, unless you sign up to a Freetrade Plus account for £9.99 per month. However, while neither platform charges commission for buying or selling shares, Trading 212 does charge a 0.15% fee for trading in currencies that are different from the one the account is in.

Freetrade vs Trading 212 - customer reviews

Both Freetrade and Trading 212 are highly rated by their users, according to independent customer review site Trustpilot. Overall, both score over 4 out of 5 stars, with 73% of its nearly 18,000 reviewers claiming Trading 212 is "excellent", while 70% of Freetrade's 2,500 reviewers also thought it was "excellent". Both platforms got positive feedback on their customer service propositions, as well as users finding them easy to navigate.

Summary: Freetrade vs Trading 212

Freetrade* and Trading 212 probably have the fiercest rivalry in the free share-trading space, with both offering a similar low-cost option. If you are looking for maximum investment choice, Trading 212 edges out Freetrade, offering a greater variety of shares, as well as access to other investments, including cryptocurrencies. Trading 212 also doesn't charge a fee for its ISA, although Freetrade also offers a SIPP, which its competitor currently doesn't have in its range.

For more detailed analysis of both platforms, read our Freetrade review and Trading 212 review.

 

If a link has an * beside it this means that it is an affiliated link. If you go via the link Money to the Masses may receive a small fee which helps keep Money to the Masses free to use. But as you can clearly see this has in no way influenced this independent and balanced review of the product. The following link can be used if you do not wish to help Money to the Masses or take advantage of any exclusive offers - Freetrade