Freetrade hikes monthly fees for Standard and Plus customers
Freetrade increases monthly fees for its Standard and Plus customers just months after introducing a new pricing structure
- Freetrade introduced a three-tier subscription last summer
- It increased prices for its Standard customers by 66%
- Now clients are faced with a further monthly increase and higher FX costs
If you open an account through links marked with an asterisk, This is Money earns an affiliate commission. We will not allow this to affect our editorial independence.
Do-it-yourself investment app Freetrade will soon raise its monthly fees, just months after introducing a new three-tiered plan that boosted prices for its Standard customers.
Last summer, Freetrade introduced three plans — Basic, Standard, and Plus — which saw Standard customers experience a 66 percent rate increase.
But despite the price increases, the popular platform remains free to use for those who opt for the most basic service, which does not offer Isa shares.
free trade* basic plan remains unchanged and is free for anyone with access to a general investment account, commission-free trades, and access to over 1,500 global stocks and ETFs.
The Standard plan, which includes an Isa, now goes from £4.99 to £5.99 per month, while the Plus plan, previously £9.99, costs £11.99 per month.
Up: Freetrade’s Standard and Plus customers will pay more each month if they don’t opt for annual billing
But Freetrade customers can keep the original lower cost if they pay an annual fee of £59 or £119 upfront for the Standard and Plus plans respectively. The changes will take effect from customers’ billing date in May.
The investment platform previously told This Is Money there were no plans to increase fees, but CEO Adam Dodds said the environment had changed.
‘When you spoke to us [in 2021], it was before we revised our plans. I don’t think the interest rate environment was the same as it is now,” he said.
“It seems pretty reasonable in the current environment that you would see a small increase in this plan.
“And then we give our customers an option to keep their current rate if they don’t mind paying up front because of course that gives us more security around revenue as a company, so it’s kind of a win-win in that way.” win situation.
“If you want to keep your current rate, sign up for annual billing… Your annual rate won’t change.”
The steepest new Freetrade costs come in the form of FX costs, as the foreign exchange costs of buying foreign stocks are known. Basic customers face an increase from 0.45 percent to 0.99 percent.
The average Basic customer order is around £30, meaning customers will pay around 30p instead of the current rate of 14p.
The fee for Standard clients will be increased from 0.45 percent to 0.59 percent and the FX fee for Plus clients will be reduced to 0.39 percent.
These changes take effect on April 11.
Freetrade attracted customers with its free trading offerings and saw major growth in the boom in trading and investing during the lockdown. The free model, alongside rival investing apps like Trade 212 And eToro*shook up the DIY investment market.
In response, established players have been adjusting their offerings over the past year. AJ call* launched its own app for profitable investing Dodl, while Interactive investor* recently launched a new lower £4.99 per month option for those with less than £30,000 invested.
How does Freetrade compare? Read our guide to the best investment platforms.
Compare the best DIY investment platforms and stocks Isa
Online investing is simple, cheap and can be done from your computer, tablet or phone at a time and place that suits you.
When it comes to choosing a DIY investment platform, stock Isa or a general investment account, the range of options seems overwhelming.
Each provider has a slightly different offering, charging more or less fees for trading or holding stocks and giving access to a different range of stocks, funds, and mutual funds.
When weighing up the right one for you, it’s important to look at the service it offers, along with handling fees and transaction fees, plus any other additional fees.
To help you compare the best investment accounts, we’ve put together the facts and put together a comprehensive guide to choosing the best and cheapest investment account for you.
We highlight the key players in the table below, but we encourage you to do your own research and consider the points in our full guide linked here.
>> This is Money’s full guide to the best investment platforms and ISAs
The platforms below have been independently selected by This is Money’s specialist journalists. If you open an account through links marked with an asterisk, This is Money earns an affiliate commission. We will not allow this to affect our editorial independence.
| Management fees | Loads notes | Fund trading | Default share, trust, ETF trading | Invest regularly | Dividend reinvestment | ||
|---|---|---|---|---|---|---|---|
| AJ call* | 0.25% | Max £3.50 per month for stocks, trusts, ETFs. | £1.50 | £9.95 | £1.50 | € 1.50 each | More detail |
| Bestinvest* | 0.40% (0.2% for pre-built portfolios) | Account fees reduced to 0.2% for turnkey investments | Free | £4.95 | Free for funds | Free for income funds | More detail |
| Charles Stanley directly | 0.35% | No share platform fees on any transaction in that month and an annual cap of £240 | Free | £11.50 | na | na | More detail |
| Fidelity* | 0.35% on funds | £45 fee up to £7,500. Max £45 per annum for stocks, trusts, ETFs | Free | £10 | Free funds £1.50 shares, relies on ETFs | £1.50 | More detail |
| Hargreaves Lansdown* | 0.45% | Capped at £45 for stocks, trusts, ETFs | Free | £11.95 | £1.50 | 1% (£1 min, £10 max) | More detail |
| Interactive investor* | £9.99 per month, or £4.99 under £30,000, £12.99 for Sipp | £5.99 a month back in free trade credit (does not apply to a £4.99 subscription) | £5.99 | £5.99 | Free | £0.99 | More detail |
| iWeb | £100 one-off | £5 | £5 | na | 2%, up to £5 | More detail | |
| Etoro* | Free but no Isa or Sipp | Investment account offers stocks and ETFs. Beware of high risk CFDs on a trading account | Not available | Free | na | na | More detail |
| Free trade* | Free for Basic account, £4.99 per month for Standard with Isa | Freetrade Plus with more investment and Sipp is £9.99/month inc. Is a fee | No funds | Free | na | na | More detail |
| Forefront | 0.15% | Only Vanguard Funds | Free | Free Vanguard ETFs only | Free | na | More detail |
| (Source: ThisisMoney.co.uk Jan 2023. Administration fees may be levied monthly or quarterly | |||||||