We also show you how you could get a welcome bonus of up to £50* with InvestEngine or get a free share worth between £10 and £100* with our reader offer with Freetrade (capital is at risk).
InvestEngine vs Freetrade - which is better?
| InvestEngine* | Freetrade* | |
| Services | 10 Managed growth portfolios
Free DIY investing service with access to more than 690 ETFs Auto-invest savings plan |
Accessed through a smartphone app
Stock performance information User forum |
| Products | ISA, GIA (General Investment Account), SIPP | ISA, GIA, SIPP |
| Minimum investment | £100 (Minimum investment of £10 per week for auto-invest savings plan) | £2 |
| Platform fees | 0.25% per annum managed platform platform charge (DIY is free)
0.15% - 0.25% ETF annual charge (the average ETF charge is 0.16% pa within growth portfolio according to InvestEngine) 0.07% market spread (InvestEngine estimate) |
Basic account - Free
Standard account - £5.99 per month or £59.88 annually (Includes ISA) Freetrade Plus - £11.99 per month or £119.88 annually (Includes ISA & SIPP) FX fees for non-BGP trades of between 0.39% and 0.99% |
| Customer reviews (Trustpilot) | 4.6 out of 5.0 | 4.0 out of 5.0 |
| Money to the Masses Offer | Invest at least £100 with InvestEngine via this link and receive a welcome bonus of up to £50*. The bonus will be paid once you invest at least £100 in your portfolio (Terms and conditions apply. Capital at risk). | Receive a free share worth between £10 and £100* when you sign up for a basic account and deposit a minimum of £50 (Terms and conditions apply) |
InvestEngine vs Freetrade - services
InvestEngine* is both a robo-advice service and a DIY investment platform. Much like with competitors Nutmeg and Moneyfarm*, users can choose from 10 low-cost, diversified managed ETF portfolios. Additionally, InvestEngine gives users the option to take a more active role by picking their own investment funds, combining the managed portfolio of robo platforms with some of the DIY investment options offered by the likes of Interactive Investor*. It is a low-cost DIY platform, though this is reflected in the relatively limited investment range.
Freetrade* also offers a relatively low-cost way to invest, but its key platform selling point is the ability to do so through its app. It claims to simplify the investing process through a stripped-back platform that does away with the calculators, guides or research on offer from bigger names. The Freetrade platform is designed solely for buying and selling shares, ETFs and bonds, so it doesn't offer as many extra services as its rivals, though there are still information and tools for users to find shares, see limited performance data, buy and sell, and monitor their portfolio performance – all through the app. The Freetrade range is wider than other app-based platforms such as AJ Bell Dodl*, offering access to around 4,700 stocks and ETFs on its 'Basic' plan and over 6,200 stocks and ETFs on its 'Standard' and 'Plus' plans.
InvestEngine vs Freetrade - products
While both InvestEngine* and Freetrade* offer stocks and shares ISAs, General Investment Accounts and SIPPs, the additional wrappers available are limited. Though they have the main products you would expect from an investment platform, the absence of a Lifetime ISA and Junior ISA may mean some investors will be tempted to look at competitors that offer a wider product range, such as Interactive Investor*.
Keep in mind that the Freetrade 'Basic' plan – its only free service – only offers a General Investment Account (GIA) option. Investing using a stocks and shares ISA with Freetrade will require an upgrade to one of the paid plans at a cost of either £5.99 or £11.99 per month. To use a SIPP, you will need to choose the Freetrade Plus plan, which costs £11.99 per month. This added monthly cost could be enough to outweigh the benefits of Freetrade's commission-free investing set up – it all depends on how you plan to use the platform.
InvestEngine vs Freetrade - minimum investment
The minimum investment if you want to put in a lump sum is £100 with InvestEngine* or at least £10 per week for its auto-invest savings plan.
Freetrade's* credentials as a top option for beginners are boosted by its low minimum investment. You can start investing with just £2, though there is the significant caveat that you will need to upgrade from a 'Basic' to a 'Standard' account – at a cost of £5.99 per month – to open an ISA, or upgrade to a 'Plus' account – at a cost of £11.99 per month – to open a SIPP.
InvestEngine vs Freetrade - fees
The InvestEngine* platform fee of 0.25% per annum only applies to its managed portfolios, though there is an ETF annual charge and a market spread (the difference between an ETF buy and sell price). InvestEngine claims the average ETF charge is 0.14% per annum within its 'growth' portfolio and estimates the market spread to be 0.07% per annum on its ETFs. This brings the total cost of an InvestEngine growth portfolio to approximately 0.46% per annum, which compares favourably to competitors such as Nutmeg or Moneyfarm*.
InvestEngine's DIY investment portfolios within a Stocks and Shares ISA or General Investment Account do not have a platform fee, however, investors will still pay ETF charges and a market spread totalling an average of 0.21%. Investing through a DIY SIPP will attract an annual fee of 0.15%, capped at £200 per year and a managed SIPP portfolio will attract an additional 0.25% management fee.
Freetrade* fees are structured differently to most other investment platforms, including InvestEngine. As the name implies, buying and selling shares is free with its basic account. However, the cost comes in the form of a monthly subscription should you upgrade to a Freetrade Standard account (£5.99 per month) or to a Freetrade Plus account (£11.99 per month). You will need one of these accounts to hold your money in an ISA (Standard or Plus) or SIPP (Plus only). Upgrading is also required to access to additional features, including earning up to 5% interest on any cash you hold. Freetrade also charges FX fees on non-GBP trades. Basic account customers will pay 0.99% FX fees, Standard account customers will pay 0.59% FX fees and Plus account customers will pay 0.39% FX fees.
InvestEngine vs Freetrade - customer reviews
InvestEngine* has a Trustpilot score of 4.6 out of 5 based on more than 1,100 reviews. Around 81% of reviewers rated it five stars, while 4% rated it with one star. Happy customers mentioned the ease of use and simplicity of the platform. The negative reviews focused on poor customer service experiences.
Freetrade* is some way behind according to Trustpilot, though still rated mostly positively by customers. It is currently at an average of 4.0 out of 5.0 based on just over 4,100 reviews. Of those, 67% gave Freetrade five stars and 15% gave only one star. The good reviews mentioned the ease-of-use and low-cost nature of the platform, while customers leaving poor reviews complained of poor communication and slow transfer times.
Summary: InvestEngine vs Freetrade
InvestEngine* and Freetrade* are both attractive options for beginner investors looking for a low-cost platform that is easy to manage. Both are missing the wide range of products and services that competitors can offer, but they do cover the basics. The key points of difference are the portfolios offered by InvestEngine vs the DIY nature of Freetrade, keeping in mind that InvestEngine also offers a free DIY option. When it comes to cost, you will need to decide if the percentage fee of InvestEngine (if you choose a managed portfolio) outweighs the monthly cost of Freetrade (assuming you choose the ISA or SIPP wrapper). For some people, the significant gap in the review scores will also be an important indicator of what using the platform will be like and what sort of assistance you can get if any issues arise.
For more detailed explanations of each of the platforms, read our InvestEngine review and Freetrade 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 - InvestEngine, Freetrade, Interactive Investor, Moneyfarm, AJ Bell Dodl