FreeTrade is one of those apps that is trying to re-innovate the stock market industry by appealing to millennials. Kinda like how Monzo and Starling have shaken up the retail banking industry.
It's still early days as the company is relatively new they have already created a fantastic app that is intuitive and easy to understand without too much jargon flying about. Like many Challenger apps today they are making big strive in the industry and continue to do so with the European expansion planned later this year.
You will be able to buy shares in companies only listed on the UK and US stock exchanges at the moment, There are some caveats such as it does not support the full list of companies. However, they are adding more regularly. It's worth noting that small companies are unlikely to be on here but you will be able to request it in their Reddit thread.
There are two options when it comes to buying shares on this platform. Firstly you can choose an “instant order” which executes the order instantly at the time it's placed, and this costs £1. The other option is called “Basic order” this means that they will execute the order at the end of the day around 4 pm in our experience it's been around 4 pm – 4:10 pm and this is free. This option means that the prices will fluctuate and you will likely end up with a different price per share to when you placed the basic order. This price can go up or down by the time the order is executed.
One last caveat which we find the most frustrating is that if you plan to trade with a large amount of money this app only displays prices to the nearest whole penny. So essentially this makes it quite difficult to determine how much you have gained or lost per share. For example, if you Purchase LLOY shares at £0.58 each and the current price is £0.58 but you Investment is down 0.64%.
Overall it's a good platform for beginners to get started. You can open an ISA account or GIA General Investment Account). I think it's safe to say that over time this platform will mature and more features will be added like additional exchanges and more stocks. A few rumours flying about that FreeTrade plan to launch an Alpha tier which will discount instant trades for a monthly fee. If you are interested in trying this app use our referral link and get one free share from FreeTrade Up to £200 when you sign up using this link and fund your account.