Freetrade raises monthly fees for its Standard and Plus clients just months after the introduction of a new pricing structure
- Freetrade introduced a three-tier subscription plan last summer
- It increased prices for its Standard customers by 66%
- Now customers face another monthly hike, as well as higher exchange fees
If you open an account using links that have an asterisk, This is Money will earn an affiliate commission. We do not allow this to affect our editorial independence.
DIY investment app Freetrade will soon increase its monthly fees, just months after the introduction of a new three-tier plan that raised prices for its Standard customers.
Last summer, Freetrade introduced three subscription plans – Basic, Standard and Plus – which saw Standard clients face a 66% increase in fees.
But despite the price increase, the popular platform will remain free for those who opt for its most basic service, which does not offer Isa stocks and shares.
Freetrade*’s basic plan remains unchanged and is free for everyone with access to a general investment account, commission-free trading and access to over 1,500 global stocks and ETFs.
The standard subscription, which includes an Isa, will now drop from £4.99 to £5.99 per month, while the Plus plan, previously £9.99, will cost £11.99 per month.
Up: Freetrade Standard and Plus customers will have to pay more each month if they don’t opt for annual invoicing
But Freetrade clients will be able to keep the initial cost lower if they pay an initial annual fee of £59 or £119 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 that there were no plans to raise fees, but chief executive Adam Dodds said the environment had changed.
‘When you spoke to us [in 2021], that was before we rearranged our plans. I don’t think the interest rate environment was the same as today,” he said.
“It seems quite reasonable in the current environment that you would see a slight increase in this plan.
“And then we give our customers the option to maintain their current rate if they’re willing to pay upfront, because obviously that gives us more certainty as a business about revenue, so that’s a bit of a winner. -winning that way.
‘If you want to keep your current rate, subscribe to annual billing…Your annual plan does not change.’
The new highest free trade fees will come in the form of foreign exchange fees, as the foreign exchange fees for buying foreign stocks are known. Basic customers are facing an upside of 0.45% to 0.99%.
The average order placed by a Basic customer is around £30, which means customers will pay around 30 pence instead of the current rate of 14 pence.
The fee for Standard customers will increase from 0.45% to 0.59%, and the exchange fee for Plus customers will be lowered to 0.39%.
These changes will come into effect on April 11.
Freetrade has attracted customers with its no-fee investment offering and has seen significant growth in the trade and investment boom. Its free model, alongside competing investment apps such as Trading 212 and eToro*, has shaken up the DIY investing market.
In response, established players have tweaked their offerings over the past year. AJ Bell* has launched its own discount investing app Dodl, while Interactive Investor* recently introduced a new option for less than £4.99 a month for those with less than £30,000 invested.
How does Freetrade compare? Read our guide to the best investing platforms.
Compare the Best DIY Investment Platforms and Isa Stocks & Stocks
Investing online is simple, inexpensive and can be done from your computer, tablet or phone when and where it’s convenient for you.
When it comes to choosing a DIY investment platform, Isa stocks and shares, or a general investment account, the range of options can seem overwhelming.
Each provider has a slightly different offering, charging more or less for trading or holding stocks and providing access to a different range of stocks, funds and investment trusts.
When choosing the one that’s right for you, it’s important to consider the service it offers, as well as the administration and trading fees, and any other additional costs.
To help you compare the best investment accounts, we’ve analyzed the facts and put together a comprehensive guide to choosing the best and cheapest investment account for you.
We highlight the major players in the table below, but advise you to do your own research and consider the points in our comprehensive guide linked here.
>> This is Money’s complete guide to the best investment platforms and Isas
The platforms presented below are independently selected by This is Money’s specialist journalists. If you open an account using links that have an asterisk, This is Money will earn an affiliate commission. We do not allow this to affect our editorial independence.
| Administration fees | Expense | fund trading | Standard Stock, Trust, ETF Trading | Regular investment | Reinvestment of dividends | ||
|---|---|---|---|---|---|---|---|
| A.J. Bell* | 0.25% | Max £3.50 per month for stocks, trusts, ETFs. | £1.50 | £9.95 | £1.50 | £1.50 per transaction | More details |
| Bestinvest* | 0.40% (0.2% for out-of-the-box wallets) | Account maintenance fees reduced to 0.2% for ready-to-use investments | Free | £4.95 | Free for funds | Free for income funds | More details |
| Charles Stanley live | 0.35% | No stock platform fees if a trade is made that month and an annual maximum of £240 | Free | £11.50 | n / A | n / A | More details |
| Loyalty* | 0.35% on funds | Fees from £45 up to £7,500. Max £45 per year for stocks, trusts, ETFs | Free | £10 | Free funds £1.50 stocks, ETF trusts | £1.50 | More details |
| Hargreaves Lansdown* | 0.45% | Capped at £45 for stocks, trusts and ETFs | Free | £11.95 | £1.50 | 1% (minimum £1, maximum £10) | More details |
| Interactive Investor* | £9.99 per month, or £4.99 under £30,000, £12.99 for Sipp | £5.99 per month back in free trading credit (not applicable to £4.99 plan) | £5.99 | £5.99 | Free | €0.99 | More details |
| iWeb | £100 single | £5 | £5 | n / A | 2%, maximum £5 | More details | |
| Etoro* | Free but not Isa or Sipp | The investment account offers stocks and ETFs. Beware of high risk CFDs in the trading account | Not available | Free | n / A | n / A | More details |
| Free exchange* | Free for Basic account, £4.99 per month for Standard account with Isa | Freetrade Plus with more investments and Sipp is £9.99/month including tax. Isa Fee | no funds | Free | n / A | n / A | More details |
| Avant-garde | 0.15% | Only Vanguard funds | Free | Free Vanguard ETFs only | Free | n / A | More details |
| (Source: ThisisMoney.co.uk January 2023. A percentage administrative charge may be levied monthly or quarterly | |||||||
