Freetrade in 2025 Review Is It Best Free Trading App

Freetrade, a UK-based commission-free stock trading platform, has solidified its position as a leading fintech solution for retail investors in 2025. With over 720,000 active users and £2.5 billion in assets under administration, Freetrade’s mobile-first app empowers digital nomads, beginners, and seasoned investors to trade over 6,200 stocks, ETFs, and UK Treasury bills. Acquired by IG Group for £160 million in April 2025, Freetrade continues to operate as a standalone brand, leveraging IG’s resources to accelerate growth. This article explores Freetrade’s key features, recent developments, and best practices for leveraging it in 2025’s dynamic investment landscape.

What Makes Freetrade Stand Out?

Freetrade revolutionizes retail investing with its accessible, low-cost, and user-friendly platform. Its core strengths include:

Commission-Free Trading: No fees on UK and US stock trades, making investing affordable.
Fractional Shares: Allows investment in US stocks starting at £2, ideal for beginners.
Tax-Advantaged Accounts: Offers ISAs and SIPPs for tax-efficient investing.
User-Friendly Mobile App: Intuitive design with biometric login and thematic stock categorization (e.g., gaming, female-led companies).
Regulatory Protection: Authorized by the FCA with up to £85,000 FSCS protection.

Key Features and Developments for Freetrade in 2025

Drawing from recent updates and industry insights, here are the top features and advancements in Freetrade for 2025:

1. Acquisition by IG Group

Description: On April 1, 2025, IG Group completed its £160 million acquisition of Freetrade, a 29% discount from its 2023 valuation of £225 million. Freetrade remains a standalone brand, with IG investing in new products, talent, and marketing to accelerate growth. The deal broadens IG’s UK trading offerings and enhances Freetrade’s scalability.
Key Benefits: Access to IG’s resources; faster feature rollouts; expanded market reach.
Best For: Investors seeking a growing platform with enhanced capabilities.
Implementation: Continue using Freetrade’s app; expect new features like advanced order types by Q3 2025.

2. Expanded Asset Offerings

Description: In 2025, Freetrade offers over 6,200 stocks, 200+ ETFs, 150+ investment trusts, 160+ REITs, and UK Treasury bills. The May 2025 launch of 22 Vanguard mutual funds (e.g., LifeStrategy funds) on the Plus plan diversifies portfolios, appealing to investors seeking low-risk, tax-efficient options like ISAs and SIPPs.
Key Benefits: Broad diversification; tax-free growth via ISAs and SIPPs.
Best For: Beginners and long-term investors building diversified portfolios.
Implementation: Upgrade to Standard (£5.99/month) or Plus (£11.99/month) for ISAs, SIPPs, and mutual funds; invest in Treasury bills for low-risk returns.

3. Flexible ISA and Same-Day Withdrawals

Description: Freetrade’s flexible ISA, introduced in 2024, allows withdrawals without affecting the £20,000 annual allowance. In 2025, Plus subscribers gain same-day withdrawals (with a £5 fee), enhancing liquidity. These updates make Freetrade ideal for dynamic financial planning.
Key Benefits: Greater flexibility; faster access to funds for nomads and active traders.
Best For: Investors needing liquidity and tax-efficient accounts.
Implementation: Open a flexible ISA; opt for Plus for same-day withdrawals and priority support.

4. Securities Lending and Trading Breaks

Description: In August 2024, Freetrade partnered with Sharegain to launch securities lending, allowing retail clients to earn passive income by lending shares (50% fee split). The 2025 Trading Breaks feature encourages responsible investing by prompting users to pause and review trades, reducing impulsive decisions.
Key Benefits: Passive income potential; promotes disciplined investing.
Best For: Investors seeking additional revenue and beginners learning market discipline.
Implementation: Enable securities lending in settings; use Trading Breaks for thoughtful trade execution.

5. Web Platform and Regional Insights

Description: Launched in 2024 and refined in 2025, Freetrade’s web platform complements its mobile app, offering portfolio management on larger screens. Regional data shows varied investor preferences in 2025, with NVIDIA leading in London and Manchester, MicroStrategy in Birmingham, and iShares MSCI India ETF in Glasgow, reflecting diverse strategies.
Key Benefits: Enhanced usability; insights into trending investments by region.
Best For: Professionals managing portfolios from desktops; investors exploring regional trends.
Implementation: Access the web platform for detailed portfolio views; explore thematic categories for investment ideas.

Warnings and Considerations

Valuation Drop Concerns: The £160 million acquisition price, down from a £650 million peak in 2021, led to losses for late crowdfunding investors, sparking criticism over investor protection. Verify risks before participating in crowdfunding.
Limited Asset Classes: Lacks bonds, options, and cryptocurrencies, limiting advanced strategies. Consider platforms like eToro for broader portfolios.
Currency Conversion Fees: Non-UK stock trades incur a 0.39-0.45% FX fee, impacting returns on US or European stocks. Use GBP-based assets to minimize costs.
Regulatory Scrutiny: Past criticism over hidden fees and advertising practices requires vigilance. Review fee structures carefully.
App Performance Issues: Some users report slow updates or pink-screen errors. Test the app and contact support (freeshare@freetrade.io) for persistent issues.

How to Leverage Freetrade Effectively in 2025

Maximize your Freetrade experience with these strategies:

Digital Nomads: Use the mobile app for trading on the go; leverage flexible ISAs for tax-efficient withdrawals during travel.
Beginners: Start with the Basic plan (free) and fractional shares; use Trading Breaks to build disciplined habits.
Long-Term Investors: Open a SIPP or ISA on the Standard/Plus plan; invest in Vanguard mutual funds or Treasury bills for stability.
Passive Income Seekers: Enable securities lending for additional revenue; monitor tax implications of manufactured dividends.
Tech-Savvy Users: Use the web platform for detailed analysis; explore regional trends to diversify portfolios.

Conclusion

In 2025, Freetrade remains a top choice for retail investors, offering commission-free trading, fractional shares, and tax-advantaged accounts tailored to digital nomads and beginners. Its acquisition by IG Group, expanded asset offerings, and features like flexible ISAs and securities lending enhance its appeal, despite challenges like valuation drops and limited asset classes. With 720,000 users and £2.5 billion in assets, Freetrade’s user-friendly app and regulatory protection make it a strong contender in the UK fintech space. By leveraging its low-cost model, exploring new features, and managing fees, investors can harness Freetrade to build wealth in 2025’s vibrant, location-independent financial ecosystem.