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Both Freetrade and Trading 212 offer the opportunity to trade stocks without paying any fees. This has recently become pretty popular in the world of investing, with other companies such as Stake and eToro offering the chance to invest fee-free. Freetrade lets you buy individual UK and US stocks and exchange-traded funds (ETFs). Trading 212 allows you to trade over 1,800 instruments (not the musical type). These include cryptocurrencies, stocks, commodities and currencies.
So, how do Freetrade and Trading 212 compare?
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Both of these platforms are free, which means there aren’t any standard costs or charges for trades, this makes it pretty difficult to compare the costs.
While Trading 212 has virtually no charges for anything, other than a 0.5% foreign exchange fee and some restrictions on withdrawal and deposit amount. Freetrade does have a couple of charges, such as a spot rate and 0.45% foreign exchange fee if you choose to buy shares in other countries. There’s also a charge to use its stocks and shares individual savings account and a £5 charge if you need a same-day withdrawal.
This is still a tiny amount in fees compared to other stock trading platforms. You’d usually expect to spend upwards of £10 per transaction, which can minimise your potential returns. This is a good opportunity to try out share trading without spending a whole lot of money.
Trading 212 has a demo account available, meaning you can practise trading without using real money. Once you’ve got the hang of it, you can try it out for real! It lets you have a go without even giving up an email address. Of course, if you want to keep an eye on your imaginary stocks for days, weeks or months, you’ll have to sign up.
This is something that Freetrade does not offer – meaning you have to dive into the real thing straight away.
These are both great options for free trading. Trading 212 is a little bit more complicated than Freetrade is, but it does have the demo account that you can have a go with before getting started. There aren’t any pre-made portfolios available though, so if you’re not keen on creating your own, neither of these would be suitable for you.
Reddit generally thinks that Trading 212 is the best of the two platforms due it charging no commission and offering fractional shares. Most people thought it offered more stocks, and those that it doesn’t offer can be added quickly on your request.
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