Freetrade↗︎ was acquired by online trading giant IG Group in a £160 million deal, and with this change in ownership, the platform has undergone a series of changes, from new subscriptions to the introduction of new asset classes.
The key question now is whether this shift will convince loyal Trading212 users, accustomed to near-free investing, to jump ship for Freetrade.
What is Freetrade?
Founded in 2016 by Adam Dodds and Davide Fioranelli, Freetrade built its reputation as a commission-free, mobile-first neobroker. Its mission was to democratise investing by making it simple and accessible.
The IG Group takeover landed awkwardly with parts of the platform’s community, particularly early supporters who backed the company through crowdfunding at its 2021 peak, when Freetrade carried a £650m valuation. The eventual sale came at a heavy discount, a tough outcome for loyal backers who had bought into a very different growth story.
IG insists Freetrade will continue to run as a standalone business under its existing leadership, with co-founder Viktor Nebehaj staying at the helm, while the new owner says it will pour money into the platform to speed up the rollout of new products and features.
The Freetrade Changes
Freetrade’s model has always been built around subscription tiers, and the post-acquisition revamp has made some big changes in this area.
The Basic (free) account now give investors access to a Stocks & Shares ISA and a SIPP, alongside hundreds of stocks, ETFs, mututal funds and gilts at no extra cost. The Standard (£5.99/mo) or £11.99/month (Plus) plans are now primarily for those who want lower FX fees or better returns on uninvested cash.
The rate ranges from 1% AER on the free tier (on up to £1,000) to as much as 3.5% AER on up to £3,000 in the Plus plan. This shift towards a broader, subscription-based ecosystem is designed to create a predictable revenue stream for IG, but it leaves users to weigh whether the paid plans justify their cost.
The AER is subject to change based on Bank of England interest rates.
How Does It Compare With Trading212?
Both Trading212 and Freetrade offer commission-free trading, fractional shares, and ISAs. But beyond that, their paths diverge.
Features & Tools
Freetrade maintains a deliberately stripped-back approach. The app is clean and functional, but its minimalist design means it lacks a lot of the advanced features and research tools found on other platforms. Freetrade’s key differentiators are its access to mutual funds, gilts, and a SIPP.
Trading212, on the other hand, provides a feature-rich experience at no cost. It has built a powerful ecosystem around core investing, with a strong emphasis on automation and community. Key features include:
- Investment Pies & AutoInvest: This flagship feature allows users to create diversified portfolios (“Pies”) and automatically invest in them on a set schedule. It simplifies the investment process and allows for easy portfolio rebalancing.
- Community: The platform has a vibrant community where users can share their “Pies,” discuss strategies, and learn from one another.
- Interest: Earn 4.05% AER on GBP deposits. You can earn interest in 13 global currencies.
- Cashback Debit Card: Tied to account balances, the cashback debit card is a unique perk that provides a tangible benefit to investors.
- Lower FX Fees: Trading212’s FX fees for its free Invest and ISA accounts are highly competitive, often at 0.15% for US stocks.
Trading212 also offers a separate CFD (Contract for Difference) account. While high-risk and separate from the long-term investing side, it remains a key differentiator for more experienced traders.
Fees and Charges
The main difference in cost is the fee structure. Freetrade charges a flat monthly fee for its advanced features, while Trading212 operates on a commission-free model with no platform or subscription fees for its core accounts.
| Feature / Fee | Freetrade (Basic) | Freetrade (Plus) | Trading 212 (Invest / ISA) |
|---|---|---|---|
| Monthly Fee | £0 | £9.99 | £0 |
| UK Stocks | Free | Free | Free |
| Foreign FX Fee | 0.99% | 0.39% | 0.15% |
| SIPP | No | Yes | No |
| Mutual Funds | No | Yes | No |
User Experience and Support
Freetrade’s app is widely praised for its simplicity and clean interface, making it an ideal choice for beginners seeking a no-fuss experience. However, its lack of advanced charting and research tools can be a drawback for more engaged investors. While customer support has typically been limited to email, the company has recently introduced an in-app chat for all Freetrade clients.
Trading212’s app is more feature-rich but can be overwhelming for absolute beginners. The platform is praised for its powerful charting tools and a wide range of order types, offering greater control. It also has a strong reputation for fast, responsive support.
Verdict
The IG Group acquisition has strengthened Freetrade’s position, with key features such as the ISA and SIPP now included on the free plan. The paid tiers no longer gate access to core investment products and are instead focused on offering better interest rates on uninvested cash, a shift that makes the platform more accessible to long-term investors.
However, the subscription model feels like a step backward in a market where rivals like Trading212 and Robinhood offer a richer, more powerful, and feature-complete platform for free. Trading212’s extensive tools, community features, and lower FX fees make it a more compelling choice for the majority of investors.
Unless IG has even bigger changes in the pipeline, Freetrade risks looking like a simplified, cut-down version of what investors can already get elsewhere at a lower cost.
For now, Trading212↗︎ remains the more competitive and feature-rich option for the modern investor.
