Trading 212 vs Freetrade: Which one is better?

In the rapidly evolving world of trading platforms, “Trading 212 vs Freetrade” is a hot topic. These platforms cater to different financial instrument preferences and offer unique features. 

From minimum deposit requirements to the allure of fractional shares, both platforms have their strengths. Trading 212 offers a diverse range of over 10,000 stocks and ETFs, including the option to trade CFDs. 

In contrast, Freetrade offers streamlined stocks and shares ISA experience. But which investment platform reigns supreme? 

This article dives deep into commission-free trading, mobile trading apps, fees, and more, offering clarity to potential Trading 212 customers and those keen to open an account with Freetrade.

Deposit and withdrawal fees Trading 212 vs Freetrade

In both platforms, generally, all operations are free, whether a deposit or a withdrawal. However, a deposit fee of 0.7% applies for any deposit by credit card above €2,000 total deposit into your Invest account on Trade 212. However, try the first demo account before making any investments. 

Freetrade does not impose any fees for trading shares. As stated previously, the basic plan does not have a platform Trading 212 fee, but the standard and plus plans have monthly fees of £4.99 and £9.99 respectively. If you trade shares in currencies other than pounds, you will be charged based on the current exchange rate plus a 0.45% foreign exchange fee.

You need to make a minimum deposit of €1 to start trading on Trading 212 when using a debit/credit card or other payment services. If you are depositing by bank transfer, Trade 212 charges at least €10 to complete the request. At the same time, you can make a withdrawal of at least €1 by any means.

 At Freetrade, there is no minimum deposit requirement. It means you can deposit as little money as you wish.Once you have completed the registration process, you need to fund your account to start trading. When you sell shares, you won’t be able to withdraw the associated cash until the trade has settled. Settlement is typically completed in 2-3 working days. 

Trading 212 vs Freetrade – Trading Interface

Investments are available through the T212 mobile application. Available on the Play Store and App Store, the Trading 212 mobile app is very popular and has received a rating of 4.5/5 on the App Store and 3.5/5 on the Play Store.

The user interface of the mobile app

We found the mobile app very easy to use. Just like the web platform, it was designed with a simple design. Navigation is smooth, and information about your account is easy to access, as are other operations relating to the management of your funds.

Freetrade is an excellent platform for beginners who want to start investing in stocks and exchange-traded funds (ETFs). You can join over a million users and download the app to invest in stocks commission-free via one of our plans: Basic, Standard (ISA included), or Plus (ISA and SIPP included).

Trading 212 vs Freetrade – Assets available 

When it comes to available assets on Trading 212, these are limited compared to Freetrade. From the Invest account, you can only invest in stocks and ETFs. Other assets such as Forex, indices and commodities are only available in a CFD account, and Trading 212 does not allow you to build a crypto portfolio.

It is important to note that you will not actually own the stocks and ETFs you purchase on Trading 212. The broker partners with Interactive Brokers (IBKR) to gain access to all of the exchanges mentioned above.

When you buy a stock or ETF, Trading 212 buys that stock through IBKR and holds it in its name or with a nominated company in trust. You then become the beneficial owner of the investments, but the shares are not directly in your name.

This is particularly disturbing from the point of view of the ownership of your securities in the event of T212 bankruptcy. This also makes it impossible to transfer your T212 securities account to another broker.

On Freetrade, they offer funds that trade on a stock exchange: ETFs and Investment Trusts. Despite lots of presence and variety in the UK, we don’t feature mutual funds.

You can explore over 6,000 UK, US, and European shares to sell or buy commission-free via the Freetrade app. When you invest, your capital is at risk. Other charges may apply. See our full pricing table.

The most popular ETFs on Freetrade are Vanguard FTSE All-World UCITS ETF USD (Acc.) Vanguard S&P 500 UCITS ETF USD (Acc.)

In addition to the previously mentioned ETFs, the Freetrade app offers a wide range of choices. These include options that track the current prices of commodities, such as iShares Physical Platinum and Gold Bullion Securities, as well as options that follow futures contracts, like the iShares Bloomberg Roll Select Commodity Swap ETF.

Trading 212 vs Freetrade FAQ

How is Trading 212 so cheap? 

Instead of buying an entire stock, you acquire a portion of a share, allowing for reduced expenses and gradual accumulation of your investment. While Trading 212 does apply the currency conversion rate, there are no additional fees for foreign exchanges.

Are Freetrade and Trading 212 better than eToro?

eToro is widely regarded as a highly trusted platform, boasting an impressive Trust Score of 90 out of 99. On the other hand, Trading 212 is considered to have a moderate level of risk, with an overall Trust Score of 77 out of 99.

If you want to handle your investments while minimizing tax effectively, Freetrade is the better option compared to eToro. This is because Freetrade provides ISA and SIPP wrappers, while eToro only offers a regular account that allows CFD trading and a Money account for saving on trades and withdrawals.

How can I move the investments over from Freetrade to T212?

To move investment from Freetrade to Trade 212, you need to get a form off T21. And then, they work with freetrade to do the transfer of the cash. Share transfers are not yet supported on our platform. Therefore, if you have existing assets, you will need to sell them first. Trade 212 can accept and complete ISA transfers in cash instead.

Which broker enables a wider range of investment options?

When it comes to the final choice, the most important criterion is the selection of assets. Diversification is critical for your investment portfolio’s success. Trading 212 offers investing in ISA, ETFs, Share Trading, and CFD Trading. On the other hand, Freetrade offers access to SIPP, ISA, Share, ETFs and Investment Trusts. Neither have Crypto, Bonds, Spread Betting, and Advisor Services. Wise investing comprises a wide variety of asset classes. Therefore, finding a broker that offers every investment type you are interested in is important.

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