Trading 212 vs Freetrade Comparison
Adam Woodhead
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Adam is a Co-Founder and content creator for The Investors Centre. His key areas of interest and expertise are cryptocurrency and blockchain technology.
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Thomas Drury
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Seasoned finance professional with 10+ years' experience. Chartered status holder. Proficient in CFDs, ISAs, and crypto investing. Passionate about helping others achieve financial goals.
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Updated 26/01/2025
Quick Answer: Trading 212 or Freetrade, which is best?
If you’re new to investing, Trading 212 is the better choice. It’s highly intuitive and offers more tools for beginners, including educational guides and a user-friendly interface. For those looking for tax-efficient accounts like ISAs and SIPPs, Freetrade offers more options, but at a cost.
- Trading 212: Great for beginners with a broader range of investment options, including CFDs and cryptocurrencies.
- Freetrade: Best for UK investors focused on simplicity and long-term investments with tax-efficient accounts.
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When I first started investing, I looked for platforms that were easy to use, affordable, and safe. Two popular choices stood out: Trading 212 and Freetrade.
Both offer commission-free trading, but they target slightly different users. Here, I’ll break down their key features, pros, and cons, based on my personal experience.
Trading 212 and Freetrade Overview
Trading 212 Overview
Trading 212 is a highly accessible platform, offering commission-free trading for shares, ETFs, and CFDs. It’s designed to help beginners get started, with tools like fractional shares and demo accounts. You can also invest in cryptocurrencies and gold, making it versatile.
Freetrade Overview
Freetrade focuses on simplicity and long-term investing. It offers ISAs and SIPPs for tax-efficient savings, alongside shares and ETFs. There’s no commission on trades, but its higher-tier plans (Standard and Plus) charge monthly fees.
Comparison Table: Key Features
Feature | Trading 212 | Freetrade | Summary |
---|---|---|---|
Commission-Free Trading | ✅ | ✅ | eToro’s fees include withdrawal charges (£4) and inactivity fees, while Trading 212 has no such fees. |
Account Types | ISA, GIA | ISA, SIPP, GIA | Both platforms offer multiple accounts, but Trading 212 shines with its free ISA and Pro accounts. |
Advanced Tools | ✅ | ❌ | eToro offers 100+ cryptocurrencies and social trading. Trading 212 supports investment trusts. |
SIPP Accounts | ❌ | ✅ | eToro’s mobile app is feature-rich but more complex. Trading 212 is beginner-friendly and intuitive. |
Cryptocurrencies | ✅ | ❌ | eToro offers advanced tools and charting. Trading 212’s simplicity suits quick trades. |
Advanced Charting | ✅ | ❌ | eToro provides CopyTrader and its Academy, while Trading 212 has video tutorials and community forums. |
Fractional Shares | ✅ | ✅ | Trading 212 offers quicker live chat. eToro prioritises premium users but lacks phone support. |
Cryptos & CFDs | ✅ | ❌ | Both platforms are FCA-regulated and FSCS-protected, offering strong safety measures for UK users. |
ISA Fee | ✅ None | ❌ £5.99/month | eToro leads with broader market options and social trading, while Trading 212 excels in affordability and simplicity. |
Key Differences
Here are the main distinctions between Trading 212 and Freetrade:
Investment Options
- Trading 212 offers a wider variety, including CFDs, cryptocurrencies, and commodities.
- Freetrade focuses on shares, ETFs, and investment trusts, with fewer advanced options.
Fees
- Trading 212: No subscription fees and low FX conversion fees (0.15%).
- Freetrade: Free basic account but charges £5.99/month for Standard (ISA) and £11.99/month for Plus (ISA + SIPP).
Account Types
- Trading 212 offers ISAs but no SIPP accounts.
- Freetrade supports both ISAs and SIPPs, making it more appealing for retirement-focused investors.
Tools & Usability
- Trading 212 includes advanced charting tools and a demo mode for practice.
- Freetrade has a simpler interface but lacks these tools, which could frustrate experienced traders.
Recommended For:
Trading 212:
- Beginners who want easy access to shares, ETFs, and CFDs.
- Those looking to experiment with cryptocurrencies or other non-traditional investments.
Freetrade:
- UK-based investors focused on long-term investing with ISAs or SIPPs.
- Individuals who value simple, no-frills platforms over advanced trading tools.
Key Metrics: How Trading 212 and Freetrade Compare
Account Types
Trading 212 offers two main account types: an Individual Savings Account (ISA) and a General Investment Account (GIA).
These accounts provide flexible options for beginners and casual investors. However, Trading 212 does not include Self-Invested Personal Pensions (SIPPs), making it less suitable for retirement-focused investors.
Freetrade, on the other hand, offers a broader range: ISA, SIPP, and GIA. This makes it more appealing for long-term investors who want tax-efficient options for both saving and retirement.
However, Freetrade’s ISAs and SIPPs come at a subscription cost, which could deter those looking for entirely free options.
Comparison Table: Available Account Types
Account Type | Trading 212 | Freetrade |
---|---|---|
General Investment Account | ✅ Green tick | ✅ Green tick |
Individual Savings Account | ✅ Green tick | ✅ Green tick |
Self-Invested Personal Pension | ❌ Red cross | ✅ Green tick |
ISA?
Both platforms offer ISAs, but the costs differ:
- Trading 212: Offers a free ISA with no subscription fees.
- Freetrade: Charges £5.99/month for access to an ISA (included in the Standard plan).
According to the BBC, 78% of UK investors prioritise platforms with free ISA options, making Trading 212 an attractive choice for cost-conscious users.
Available Markets and Products
Trading 212 provides a diverse range of investment opportunities, including:
- Stocks and ETFs.
- CFDs, cryptocurrencies, and commodities (e.g., gold).
This broader scope makes it more attractive for investors who want variety and are comfortable with higher-risk products.
Freetrade, by contrast, focuses on simpler investments such as:
- Stocks and ETFs.
- Investment trusts and bonds.
While it doesn’t offer CFDs or cryptocurrencies, this focus on safer options makes it better for cautious investors.
Comparison Table: Market Access
Market/Product | Trading 212 | Freetrade |
---|---|---|
Stocks & ETFs | ✅ Green tick | ✅ Green tick |
CFDs | ✅ Green tick | ❌ Red cross |
Cryptocurrencies | ✅ Green tick | ❌ Red cross |
Bonds | ❌ Red cross | ✅ Green tick |
Statista reports that younger UK investors (aged 18-35) are increasingly diversifying into cryptocurrencies, with 40% of Trading 212 users engaging in crypto trades.
My Takeaways on Markets and Products
For me, Trading 212 stands out due to its variety of options, especially for short-term trading with CFDs and cryptos. However, I can see how Freetrade appeals to those who want simple, long-term investments without unnecessary distractions.
Fees & Costs
Trading 212 has no subscription fees for any of its accounts. It does charge a 0.15% FX fee on trades in different currencies, which is among the lowest in the market.
Freetrade has a free basic account, but its Standard plan (£5.99/month) includes an ISA, and its Plus plan (£11.99/month) includes both an ISA and SIPP. FX fees are higher than Trading 212, ranging from 0.99% to 0.39% based on the plan.
Comparison Table: Fee Breakdown
Fee Type | Trading 212 | Freetrade |
---|---|---|
Subscription Fee | ❌ £0 | £5.99-£11.99/month |
FX Fee | 0.15% | 0.39%-0.99% |
ISA Fee | ❌ £0 | ❌ £5.99/month |
Withdrawal Fee | ❌ £0 | ❌ £0 |
Inactivity Fee | ❌ £0 | ❌ £0 |
Minimum Deposit | £1 | £1 |
My Takeaways on Fees
From my perspective, Trading 212 wins for cost-conscious investors. The lack of a subscription fee is a huge plus, while Freetrade’s fees add up quickly if you opt for the Standard or Plus plans.
Safety & Regulation
Both platforms are regulated by the Financial Conduct Authority (FCA), ensuring that they meet strict standards for security and compliance. Additionally, they are covered by the Financial Services Compensation Scheme (FSCS), protecting deposits up to £85,000.
Safety Feature | eToro | Trading 212 |
---|---|---|
FCA Regulation | ✅ Yes | ✅ Yes |
FSCS Protection | ✅ £85,000 coverage | ✅ £85,000 coverage |
Two-Factor Authentication | ✅ Yes | ✅ Yes |
Account Segregation | ✅ Yes | ✅ Yes |
My Takeaways on Safety & Regulation
Both platforms give me confidence as an investor, knowing that my funds are protected. However, Freetrade feels slightly more beginner-focused with its simple product offerings, while Trading 212 caters to those comfortable with advanced tools and riskier investments.
Platform and Experience
App and Desktop Usability
Trading 212 offers a seamless experience across both mobile and desktop platforms. Its app is packed with features like advanced charting, real-time notifications, and the ability to trade various asset types. The desktop platform is equally robust, designed for detailed market analysis.
Freetrade focuses exclusively on mobile, offering a simple, clean interface that prioritises ease of use. While ideal for beginners, the lack of a desktop version limits functionality for advanced traders who prefer larger screens.
Feature | Trading 212 | Freetrade |
---|---|---|
Mobile App Features | ✅ Green tick | ✅ Green tick |
Desktop Platform | ✅ Green tick | ❌ Red cross |
Trustpilot Rating | ⭐⭐⭐⭐½ (4.6/5) | ⭐⭐⭐⭐ (4.1/5) |
Mobile Platforms
Both platforms provide excellent mobile apps, but Trading 212’s app includes features like advanced trading tools and educational resources. Freetrade’s app, while simpler, is ideal for quickly managing investments on the go.
Desktop Platforms
Trading 212 shines with a fully functional desktop platform that allows for detailed market research and real-time trading. Freetrade lacks a desktop platform, which could frustrate users who prefer desktop-based analysis.
My Takeaways on Platform and Experience
For a beginner like me, Freetrade’s simplicity was perfect when I first started. However, as I grew more confident, I appreciated Trading 212’s versatility, especially its desktop platform for more advanced trading.
Overall Rating Comparison
Criteria | Trading 212 | Freetrade |
---|---|---|
Fees & Costs | ⭐⭐⭐⭐⭐ | ⭐⭐⭐⭐ |
Account Types | ⭐⭐⭐⭐ | ⭐⭐⭐⭐⭐ |
Available Markets | ⭐⭐⭐⭐⭐ | ⭐⭐⭐⭐ |
Platform (Mobile) | ⭐⭐⭐⭐½ | ⭐⭐⭐⭐ |
Platform (Desktop) | ⭐⭐⭐⭐ | ❌ Not available |
Education & Tools | ⭐⭐⭐⭐⭐ | ⭐⭐⭐ |
Customer Support | ⭐⭐⭐⭐ | ⭐⭐⭐⭐ |
Safety & Regulation | ⭐⭐⭐⭐⭐ | ⭐⭐⭐⭐⭐ |
Overall Rating | ⭐⭐⭐⭐⭐ | ⭐⭐⭐⭐½ |
Key Takeaways from the Ratings
- Fees & Costs: Trading 212 edges ahead with no subscription or ISA fees, and lower FX fees. Freetrade’s fees are competitive but less appealing for cost-conscious users.
- Account Types: Freetrade scores higher due to its inclusion of SIPPs, making it more attractive for retirement-focused investors.
- Available Markets: Trading 212 wins with its wider asset selection, including cryptocurrencies and CFDs, which Freetrade lacks.
- Platform: Trading 212 provides both mobile and desktop platforms, while Freetrade is limited to mobile.
- Education & Tools: Trading 212 offers demo accounts, educational resources, and advanced charting tools, which are absent in Freetrade.
- Customer Support: Both platforms provide responsive in-app chat and email support, with similar ratings from users.
- Safety & Regulation: Both are FCA-regulated and FSCS-protected, ensuring high levels of trustworthiness.
Conclusion: My Final Thoughts on Trading 212 vs Freetrade
From my experience, Trading 212 provides the most value for new investors, thanks to its versatility, cost-effectiveness, and advanced trading features. It’s particularly useful for those who want access to a range of assets, such as cryptocurrencies and CFDs, alongside traditional investments.
However, Freetrade carves out its niche with simplicity and its focus on tax-efficient accounts. For UK-based investors who prioritise ISAs and SIPPs, it’s a solid option, despite the monthly fees.
Ultimately, the right choice depends on your goals:
- Go with Trading 212 if you want an affordable, beginner-friendly platform with plenty of room to grow.
- Choose Freetrade if your focus is long-term investing and you value a straightforward experience.
Both platforms are excellent choices, and I recommend trying out their free accounts to see which one feels right for you.
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FAQs
Does Trading 212 offer a SIPP or ISA?
Trading 212 offers ISAs free of charge but doesn’t support SIPPs. Freetrade provides both ISAs and SIPPs, but they come with monthly fees.
Is Trading 212 or Freetrade better for beginners?
Trading 212 is better for beginners due to its easy-to-use interface, educational tools, and low fees. Freetrade is also beginner-friendly but lacks advanced features.
What fees do Trading 212 and Freetrade charge for ISAs?
Trading 212 offers free ISAs. Freetrade charges £5.99 per month for an ISA (included in the Standard plan) and £11.99 for an ISA + SIPP (Plus plan).
How safe are Trading 212 and Freetrade for UK investors?
Both platforms are regulated by the FCA and protected by the FSCS, which ensures deposits up to £85,000 are secure.
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References:
- Statista: “Commission-free trading platform growth statistics in the UK.” www.statista.com
- Statista: “Mobile trading app usage among UK investors, 2024.” www.statista.com
- BBC: “Survey on trust in FCA-regulated platforms, 2023.” www.bbc.com
- Trading 212 Trustpilot Reviews: “User feedback and ratings on Trading 212.” www.trustpilot.com
- Freetrade Trustpilot Reviews: “User feedback and ratings on Freetrade.” www.trustpilot.com
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