- Investing platform is making the Isa available to customers on its Basic plan
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Stocks and shares Isas will be free on investment platform Freetrade from 1 September in a shake-up of its service.
Currently you can only open Freetrade’s stocks and shares Isa on its Standard plan, which costs £5.99 when paying monthly or £59.88 annually.
But it will soon be made available on the free Basic plan, which could rack up savings of £72 a year for Isa customers that pay monthly.
The provider is also boosting the choice of investments available to free customers and giving them the ability to use automated order tools, including recurring orders, limit orders and stop losses.
Viktor Nebehaj, CEO of Freetrade, said: ‘The Isa should be the default investing account, positioned as a gateway for anyone looking to get started.
‘That’s why we’re making our Isa free and opening up our full investment universe to everyone.’
The price cut makes Freetrade* a compelling option for Isa investors among a growing band of investment platforms that don’t charge account fees, including InvestEngine*, Prosper* and Trading 212*.
> Read more: The best stocks and shares Isas
How do Freetrade’s plans stack up?
| Plan | Paying monthly | Paying annually | Accounts | What do you get? | |
|---|---|---|---|---|---|
| Basic | Free | Free | Investment account, Isa (from 1 September) | From 1 September, access to full range of 6,400+ global equities, ETFs, and trusts | |
| Standard | £5.99 | £59.88 | Investment account, Isa | Adds mutual funds; reduced FX fee of 0.59% | |
| Plus | £11.99 | £119.88 | Sipp, investment account, Isa | Adds free same day withdrawals; reduced FX fee of 0.39% | |
| Source: Freetrade, This is Money | |||||
This is Money says: By slashing fees for its stocks and shares Isa and introducing a full range of investments to free customers from 1 September, Freetrade* will become a much more competitive option for cost-conscious investors.
However, FX fees on the free plan are high – currently Freetrade charges 0.99 per cent. In comparison Trading 212* charges 0.15 per cent.
We like that Freetrade is making more mutual funds available to those on its Standard plan, which could give these investors a reason to keep paying the fee.
Just 28 Vanguard funds are currently available, but the platform is planning to introduce hundreds more over the coming months.
An increased choice of investments for paying customers should lead to the platform more keenly competing against the likes of AJ Bell and Interactive Investor, especially when paying annually.
Freetrade is also currently running a summer offer that gives 1 per cent cashback when topping up an Isa with £5,000 or more, capped at £200.
For a selection of other free platforms to try for your investment Isa consider:
InvestEngine*: A streamlined platform for investing in ETFs only, which could suit investors who want to build a portfolio with minimum fuss. Read more in our InvestEngine review.
Trading 212*: This well-known platform has no account fees and offers access to over 13,000 global stocks and ETFs. Read more in our Trading 212 review.
Prosper*: A unique proposition among investment platforms, with potentially zero-cost investing on offer – Prosper has no account fees and can refund the ongoing fees on around 30 index funds.
If you’re just starting out on your investing journey, read more about investing for beginners in our guide.
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