Freetrade vs Trading 212: Fees
When it comes to investing, you don't want to lose a significant chunk of your investment to fees. Unfortunately, however, many investment platforms charge high fees. This can make it difficult to make a profit on your investments, especially if the market is not performing well.
Freetrade and Trading 212 have worked hard to change this narrative. Both platforms offer commission-free trading, meaning you don't have to pay a fee for each trade you make. This can save you a lot of money in the long run, and it means you can keep more of your profits.
However, there are some differences between Freetrade and Trading 212 when it comes to fees. Let's take a look at a more detailed breakdown of the fees charged by these platforms.
Freetrade Fees
- Trades: Free
- Account fee: None
- Fractional shares: Yes
- FX rate: Spot rate + 0.45%
This FX rate is much lower than other platforms; for instance, Hargreaves Lansdown charges a rate of spot + 1%. This can be a major advantage for Freetrade users, as it can save them a lot of money on foreign exchange transactions.
Note that Freetrade offers ISAs (Individual Savings Account), and these cost £3 per month. SIPPs (Self-Invested Personal Pension) cost £9.99. Both accounts are still subject to the same low rate of spot rate + 0.45%.
Trading 212 Fees
- Trades: Free
- Account fee: None
- Minimum investment: £1 (or £10 for CFDs)
- ISA charge: None
- 0.15% fee for trades in other currencies
In terms of fees, Trading 212 is somewhat cheaper than Freetrade. Trading 212 does not charge an account fee, and there is no minimum investment requirement. However, Freetrade provides an attractive monthly membership which we'll mention later on.