If you’re interested in investing, then Freetrade is likely a company you’ll have heard of. The Freetrade app is a simple product which lets you buy and sell stocks, indexes and ETFs all from your phone at no cost. Hence the name, Freetrade.
The Freetrade app is designed to be very simple to use. Anyone aged 18 or over can open a General Investment Account (GIA) and start their investment journey. This blog post will go over the basics and get you set up ready to invest.
The Freetrade app is designed to be clean, easy to use and slick. It’s a modern day app designed to making investing as simple and quick as possible.
You’ll be able to find all your usual companies like Google, Facebook, Peloton, McDonalds and Tesla along with many other lesser known companies. This blog post won’t tell you how to invest, but it will show off the Freetrade app and get you familliar with it.
The homepage as shown above gives you an overview of how your portfolio is doing. You’ll see how much money your portfolio holds, and how much profit or loss you’ve made since you began investing.
You’ll also see which stocks you’re invested in on the home page. A little green or red profit or loss P/L percentage is shown by each investment. In the case of this fractional Tesla share, it’s up by 89.19%.
The Discover tab is how you’ll search and find new companies to invest in.
If there’s a sector you’d like to discover, the app helpfully categorises everything, so Green Energy, or Food companies are lumped together. You can also search by UK or US companies within the search bar, or for indxes, bonds and ETFs.
There’s a lot of choice, so always do your own research. In some cases some investment options might have a little “plus” written by them. If this is the case, you’ll need to sign up to Freetrade Plus to be able to buy them. These tend to be for more obscure securities, and is one way in which the Freetrade app makes money. If you make good money via the app, you may consider it a valuable add-on but it’s by no means restrictive for someone new to investing.
The insights tab is your best friend. It lets you know how you are performing against an industry benchmark. In this case, it’s the FTSE All World ETF.
As you can see, the All World ETF has a return of 20.02% and this investment account has a return of 56.14%. It is beating the market by roughly x2.8.
In this case, the portfolio is doing exceedingly well. On average, a good investment year is considered to be about 7-11%. So here, both the All World and the portfolio are doing well.
Of course you’ll need to top up your account with funds to beging investing. Freetrade allow you to top up using Apple Pay or Google Pay instantly up to £1,000. After that you’ll need to set up your bank account to send them money.
Sending money via bank transfer is rather simple. You’ll be given a reference number to put with the bank transfer which will let them know which account to credit. It usually takes one to two hours to process as it is currently a manual process to prevent fraud. If you need money instantly in your account you should use the Apple/Google pay method.
As a bonus, if you sign up to the Freetrade app via this link (aff), you’ll recieve a free share to get you started.
Buying your first share is very simple. Once you’ve decided which Stock or ETF you’d like to buy, you’ll be able to type in how much of a share you’d like to own.
Fractional shares mean you own part of a share. With US stocks, especially more expensive ones, you can buy small amounts. It makes it more accessable to retail investors, but also means you’ll get fractional returns. The more you invest the more you can gain (or lose).
Stocks ordered outside of trading hours are queued as Basic orders, and are then executed the next day at 3 pm.
Once you’ve reviewed and placed your order, you now own the share. Congratulations, you are now an investor 🎉 Using the Freetrade app really is as simple as that, and hopefully you can see why so many new investors are using this platform over the more complicated legacy platforms.
If Freetrade is a platform you’d like to try out, then please consider signing up via this link. Using this link will land both you a me a free share worth between £3 and £200.
I hope this guide has been helpful and explains how investing through Freetrade can be simple and accessible to everyone. If you have any questions, please send them my way on Twitter, I’m always keen to have a conversation about investing.