The competitive landscape for investing platforms in the UK continues to expand (which as a customer is great!). So I’ve decided to write a detailed comparison between some of the favourites, Trading 212, Freetrade, or Robinhood to help you decide on the best platform to start investing. This guide should be a good starter to figure out which platform suits you.
On a personal note, my main investing platform is Trading 212, but don’t let that impact your choice. Look at the comparison below!
1. Overview of the UK Investing Platforms
| Feature | Trading 212 | Freetrade | Robinhood |
|---|---|---|---|
| Launch Year | 2006 | 2018 | 2024 (UK Relaunch) |
| Regulated By | FCA (UK) | FCA (UK) | FCA (UK) |
| Platform Focus | Stocks, ETFs, CFDs | Stocks, ETFs | Stocks, ETFs, Options |
2. Fees
| Fee Type | Trading 212 | Freetrade | Robinhood |
|---|---|---|---|
| Account Fees | Free for Invest/ISA; Fees for CFDs | Free for Basic; £4.99/month for ISA | Free (standard accounts) |
| Commission | Commission-free on stocks and ETFs | Commission-free on stocks and ETFs | Commission-free |
| Foreign Exchange Fee | 0.15% | 0.45% | 1% on currency conversion |
| Withdrawal Fees | Free | Free (bank-specific delays may apply) | Free |
3. User Experience & Features
| Features | Trading 212 | Freetrade | Robinhood |
|---|---|---|---|
| Interface | User-friendly, advanced trading tools | Simple, clean interface | Intuitive, beginner-friendly |
| Fractional Shares | Available | Available | Available |
| Advanced Tools | Comprehensive charting, analysis tools | Limited tools | Basic tools for casual investors |
| ISA Accounts | Available | Available (at an additional charge) | Not available (planned for later down the line) |
| CFD Trading | Yes | No | No |
4. Investment Options
| Investment Type | Trading 212 | Freetrade | Robinhood |
|---|---|---|---|
| Stocks | Global stocks | UK and US stocks | US stocks |
| ETFs | Wide variety | Limited selection | Limited selection |
| CFDs | Yes | No | No |
| Cryptocurrency | Limited | No | Yes (crypto options available) |
5. Pros and Cons
Trading 212
Pros:
- Broad investment options with thousands of options (stocks, ETFs, CFDs).
- Fractional shares make high-value investments accessible.
- Zero-commission trading and low fees.
Cons:
- Complex for beginners due to advanced tools.
- Risk associated with CFD trading.
Freetrade
Pros:
- Beginner-friendly with a very straightforward simple interface.
- Competitive ISA account pricing.
- Clear focus on long-term investing.
Cons:
- Limited stock and ETF selection.
- Foreign exchange fees higher than Trading 212.
- Requires a monthly charge in order to access their ISA
Robinhood
Pros:
- Sleek, easy-to-use interface.
- Supports both crypto and traditional investments.
- Well-suited for casual investors.
- A well established secure brand.
Cons:
- Limited options for UK-specific stocks and ETFs.
- Relatively high currency conversion fees.
- No ISA option as of present.
6. Who Should Use Which?
| Platform | Ideal For |
|---|---|
| Trading 212 | Investors seeking global markets, CFDs, and advanced tools. |
| Freetrade | Beginners and those focused on UK/US stocks with long-term ISA investments. |
| Robinhood | Casual investors interested in crypto, stocks, and ETFs in a simple format. |
Conclusion
- Choose Trading 212 for versatility and advanced features.
- Choose Freetrade for simplicity and ease of use.
- Wait for Robinhood if you prioritize a clean interface and crypto trading options. Also the potential of options trading.
Additional Considerations
When choosing between Trading 212, Freetrade, and Robinhood, it’s also essential to consider these factors:
7. Educational Resources
| Feature | Trading 212 | Freetrade | Robinhood |
|---|---|---|---|
| Educational Tools | Video tutorials, demo account | Basic guides, FAQs | Blog posts, in-app tips |
| Demo/Practice Account | Yes | No | No |
Insights:
- Trading 212 stands out in providing a demo account, which is excellent for new investors wanting to practice before committing real money on either stocks or the more risky CFDs.
- Freetrade offers minimal educational resources within the platform itself, making it less suitable for those who want to learn within the app.
- Robinhood provides bite-sized tips and insights, but it’s tailored more to casual investors.
8. Community and Support
| Feature | Trading 212 | Freetrade | Robinhood |
|---|---|---|---|
| Customer Support | Email and in-app chat | In-app chat, email | In-app chat, email |
| Community Engagement | Active forum and social media | Vibrant community forum | No community forums yet |
Insights:
- Trading 212 and Freetrade have well-established user communities and forums where investors share insights and tips.
- Robinhood is still building its UK presence, so its community is less robust.
9. Security and Regulation
| Feature | Trading 212 | Freetrade | Robinhood |
|---|---|---|---|
| FCA Regulation | Yes | Yes | Yes |
| FSCS Protection | Yes (up to £85,000) | Yes (up to £85,000) | Yes (up to £85,000) |
| Two-Factor Authentication (2FA) | Yes | Yes | Yes |
Insights: All three of these investing platforms are regulated by the Financial Conduct Authority (FCA) and offer the protection of the FSCS (Financial Services Compensation Scheme). This ensures that up to £85,000 of your investments are safeguarded in case of platform failure in the future.
10. Mobile vs Desktop Experience
| Feature | Trading 212 | Freetrade | Robinhood |
|---|---|---|---|
| Mobile App | Advanced, comprehensive | Simplified | Sleek and fast |
| Desktop Platform | Full-featured | Not available | Limited desktop access |
UK Investing Platform insights:
- Trading 212 offers both robust desktop and mobile platforms, making it ideal for investors who value flexibility. The desktop experience is an extension of their core mobile platform, maintaining the same ease of use.
- Freetrade focuses solely on its mobile app, which works well for on the go investors but may disappoint those who prefer desktop trading.
- Robinhood is primarily mobile focused like freetrade, but offers limited desktop functionality as of the time of writing.
Final Recommendations
- For the best overall platform for UK Investors: Go for Trading 212 (free share on signup with my link). It provides diverse investment options (stocks, ETFs, and CFDs), advanced tools, and global market access. It is also the one I personally use.
- For Beginners: Freetrade’s simplicity, tax-efficient ISA options, and lack of overwhelming features make it a great starting point.
- For Casual/Tech-Savvy Users: If you’re drawn to crypto and want an effortless interface, Robinhood (when fully operational in the UK) may be a strong contender.
FAQ
1. Can I hold an ISA with all three investing platforms?
No, only Trading 212 and Freetrade offer ISA accounts. Robinhood currently does not.
2. Which is better for day trading?
Trading 212 is better for day traders due to its advanced charting tools and features like real-time data. Neither Freetrade nor Robinhood are ideal for active trading.
3. Is Robinhood available in the UK?
As of now, Robinhood has launched in the UK. Its availability may still be limited compared to its US counterpart but they’re slowly adapting with new features being rolled out with plans to also provide options trading too.
By assessing your trading goals, the type of investments you’re interested in, and the tools you need, you can make an informed decision. Each investing platform has unique benefits tailored to different investor profiles and the market for more competitors like Lightyear, AJ Bell, WeBull etc will continue to grow.
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