Trading 212 vs Freetrade (2025) – Which Investing App Is Better for UK Traders?
Quick Answer: Which is better, Trading 212 or Freetrade?
Trading 212 wins on features, speed, and asset range, making it better for active traders and investors who want flexibility. Freetrade stands out for simplicity and tax-efficient ISAs. Both are FCA-regulated and commission-free, but Trading 212 feels more complete for serious UK investors in 2025.
Author’s Comment
After testing both platforms extensively, I found Trading 212 offers more flexibility and depth for active traders, while Freetrade feels simpler for long-term investing. Both are FCA-regulated and commission-free, but Trading 212 delivers more tools, faster performance, and wider market access for serious UK investors.
Quick Comparison – Trading 212 vs Freetrade Summary (2025)
| Category | Trading 212 | Freetrade | Winner |
|---|---|---|---|
| Regulation & Safety | FCA regulated, FSCS protected | FCA regulated, FSCS protected | Tie |
| Fees & Commissions | Commission-free, FX fees apply | Commission-free, FX & ISA fees | Trading 212 |
| Assets & Markets | Stocks, ETFs, CFDs | Stocks, ETFs | Trading 212 |
| Account Types | Invest, CFD, ISA | Basic, ISA, SIPP (Plus) | Freetrade |
| App Experience | Fast, data-rich interface | Simple and intuitive | Freetrade |
| Research & Tools | Charting, screeners | Limited insights | Trading 212 |
| Best For | Active traders | Long-term investors | Depends |
Trading 212 Overview
Trading 212, founded in 2004, is a UK-regulated platform offering stocks, ETFs, and CFDs. It’s designed for traders who want control, speed, and market variety. The app’s interface is clean yet powerful, with real-time data, custom charting, and tools that rival professional platforms.
Pros and Cons of Trading 212
- Wide range of assets including CFDs, ETFs, and global stocks.
- Excellent mobile and web platforms with advanced charting tools.
- Commission-free trading and transparent pricing.
- FCA-regulated with FSCS protection for client funds.
- FX conversion fees on non-GBP trades.
- No SIPP or long-term pension account options.
Freetrade Overview
Freetrade focuses on simple, long-term investing. Established in 2016, it allows users to buy UK and US stocks and ETFs commission-free. It’s intuitive and beginner-friendly but lacks advanced research tools or CFDs. Its Plus plan adds ISA and SIPP access for tax-efficient portfolios.
Pros and Cons of Freetrade
- Exceptionally easy to use for beginners.
- Commission-free investing on real UK and US shares.
- ISA and SIPP options for tax-efficient investing.
- Strong focus on long-term portfolios.
- Limited research tools and analytics.
- Smaller asset selection with no CFDs or advanced trading features.
Which App Has the Better User Experience?
Trading 212 delivers a faster, data-rich experience ideal for active traders. The interface feels modern and precise, with excellent performance even under high market activity. Freetrade is simpler and clean, but less detailed. It’s great for beginners, though limited for analytical traders.
Do They Offer Learning Tools or Market Education?
Trading 212 includes in-app tutorials, market explainers, and a full-featured demo account for practice. Its learning tools are practical and accessible. Freetrade relies more on its community forum and blog for insights, offering basic education but minimal real trading simulation.
What Assets and Markets Can You Trade?
Both platforms offer fractional shares, allowing investors to buy parts of expensive stocks like Tesla or Amazon. Freetrade Plus members can also use automatic dividend reinvestment (DRIP), while Trading 212 users must reinvest dividends manually if they wish to compound returns.
Do They Offer Learning Tools or Market Education?
Account Types Available
| Platform | Account Types | Notes |
|---|---|---|
| Trading 212 | Invest, CFD, ISA | Invest for long-term, CFD for leveraged trading, ISA for tax-efficient investing |
| Freetrade | Basic, ISA, SIPP (Plus) | Basic for casual investors, ISA for tax-free investing, SIPP for retirement savings |
Do They Offer Fractional Shares or Dividend Reinvestment?
Both platforms offer fractional shares, allowing investors to buy parts of expensive stocks like Tesla or Amazon. Freetrade Plus members can also use automatic dividend reinvestment (DRIP), while Trading 212 users must reinvest dividends manually if they wish to compound returns.
How Do Their Fees and Costs Compare?
Both platforms are commission-free, but their fee structures differ subtly. Trading 212 charges small FX conversion fees on non-GBP trades but no ISA or withdrawal costs. Freetrade adds monthly fees for ISA and SIPP accounts, plus similar FX markups on overseas shares.
Fee Comparison – Trading 212 vs Freetrade (2025)
| Fee Type | Trading 212 | Freetrade | Winner | Notes |
|---|---|---|---|---|
| Trading Commission | $0 | $0 | Tie | Both are commission-free for stock and ETF trades |
| FX Conversion Fee | 0.15% per trade | 0.45% per trade | Trading 212 | Trading 212 offers lower FX markups |
| ISA Account Fee | Free | £5.99/month | Trading 212 | Trading 212’s ISA is free, Freetrade’s requires Plus plan |
| SIPP Availability | Not offered | £9.99/month (Plus) | Freetrade | Freetrade offers SIPP accounts, Trading 212 does not |
| Withdrawal Fee | Free | Free | Tie | Neither platform charges withdrawal fees |
| Inactivity Fee | None | None | Tie | No inactivity or account maintenance charges |
How Do They Handle Security and Support?
Both are FCA-regulated and covered by the FSCS, protecting client funds up to £85,000. Trading 212 offers quicker in-app support and detailed FAQs, while Freetrade relies on email and community forums. In practice, Trading 212 provides faster, more structured customer service.
Which platform is ideal for beginners?
Freetrade wins for simplicity — it’s intuitive and ideal for first-time investors wanting a hands-off approach. However, Trading 212 offers more flexibility, helping beginners progress into more advanced investing without switching platforms.
Which Is Better for Long-Term Investors?
Freetrade has the edge for long-term investing thanks to its ISA and SIPP options. However, Trading 212 still suits long-term investors who prefer to manage diversified portfolios at no ongoing account cost.
Final Verdict – Trading 212 or Freetrade?
Both apps perform strongly but serve different investor needs. Trading 212 is better for those who want control, market range, and advanced tools — a platform you can grow with. Freetrade excels in simplicity and tax-efficient accounts. Overall, Trading 212 delivers greater flexibility and value for active UK investors
Commission-free Investing for Everyone
- Invest as little as £1
- Free Share up to £100
- Earn 4.9% AER on GBP
Trading and investing involve risk. The value of your investments can go up or down, and you may lose all or part of your capital. These products may not be suitable for all investors. Please ensure you fully understand the risks involved.
FAQs
Which is better: Trading 212 or Freetrade?
It depends on your investing style. Trading 212 offers more advanced tools and wider market access (including EU stocks and CFDs), while Freetrade is ideal for long-term, passive investors who want a clean, beginner-friendly experience and access to SIPPs.
Are Trading 212 and Freetrade really commission-free?
Yes, both platforms offer commission-free trading on UK and US stocks. However, you may still pay foreign exchange (FX) fees when buying non-GBP assets—Trading 212 charges ~0.15%, while Freetrade charges 0.45%.
Does either platform offer an ISA or SIPP account?
Both platforms offer Stocks & Shares ISAs. Only Freetrade offers a SIPP (Self-Invested Personal Pension), while Trading 212 does not.
Is my money safe with Trading 212 and Freetrade?
Yes. Both platforms are regulated by the Financial Conduct Authority (FCA) in the UK and offer FSCS protection up to £85,000 per eligible account.
Can I buy US stocks on both platforms?
Yes, both platforms support trading in major US companies like Apple, Tesla, and Amazon, including fractional shares.
Does either platform offer demo accounts?
Trading 212 is the only platform that offers a demo account with virtual funds. Freetrade does not provide a demo or paper trading feature.
Does Trading offer free shares for signing up?
Yes, Trading 212 offers up to £100. You can use code TIC to get a free share worth up to £100. Just verify your account, deposit funds, and start trading.
References
- Financial Conduct Authority (FCA) Register – FCA Register
- Trading 212 Official Website – Fees & Charges
- Freetrade Official Website – Pricing Plans
- Trustpilot Reviews – Trading 212
- Trustpilot Reviews – Freetrade
- MoneySavingExpert – Commission-Free Investing
- Investopedia – What Is a Stocks and Shares ISA?
- The Times – Rise of Retail Investors in the UK
- FCA – FSCS Protection Guide
