Freetrade Options and the Benefits of Commission-Free Investing

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Freetrade offers commission-free investing, which means you can buy and sell stocks, ETFs, and other investments without paying a single penny in fees.

This approach is a game-changer for investors, as it can save them a significant amount of money over time. For example, if you invest £1,000 and pay a 0.1% commission on every trade, you could end up paying £10 in fees per trade.

The lack of commissions also makes it easier to start investing, as you can buy and sell small amounts of stock without breaking the bank.

Freetrade Options

Derivatives are a key component of freetraded options, allowing you to speculate on a huge number of other assets.

They can be used to speculate on assets like stocks, commodities, and currencies, offering greater leverage than other investing methods.

This means your initial stake can be much lower than the potential gain or loss.

Derivatives

Derivatives are a type of investment that derive their value from another underlying asset.

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Credit: pexels.com, A woman exploring clothing options in a stylish boutique store setting.

They can be used to speculate on a huge number of other assets, including many of the above, giving you a wide range of options to consider.

Derivatives usually offer greater leverage than other investing methods, meaning your initial stake can be much lower than the potential gain or loss.

Minutes Away from Commission-Free Investing

You're just minutes away from commission-free investing. Freetrade is the platform to join, with over 1.5 million users already on board.

Freetrade has been voted the Best online trading platform by the British Bank Awards for six years running. This is a testament to the platform's reliability and effectiveness.

The value of investments can go down as well as up, and you may receive back less than your original investment. This is a standard risk associated with investing.

Freetrade is a trading name of Freetrade Limited, which is a member firm of the London Stock Exchange. This gives you confidence in the platform's stability and security.

Freetrade is authorised and regulated by the Financial Conduct Authority. This ensures that the platform operates within a framework of strict rules and guidelines.

Freetrade Limited is registered in England and Wales (no. 09797821). This provides a clear and transparent record of the company's existence and registration.

For more insights, see: Banking as a Service Platform

For Free Trade

Palazzo Style Facade of the Free Trade Hall in Manchester
Credit: pexels.com, Palazzo Style Facade of the Free Trade Hall in Manchester

Free trade agreements have a significant impact on the economy. They create larger markets for companies to sell their goods to, allowing countries to specialise in producing things they excel in and import other things that would cost them a lot to produce.

This approach increases productivity and leads to economic growth. In fact, it was estimated that the GDP of the entire EU would be 8.7% lower without the single market.

Foreign direct investment is also a key benefit of free trade areas. This type of investment creates new jobs both directly and indirectly. The ten Central and Eastern European countries that joined the European Single Market experienced a robust 1.5% annual growth in employment until the breakout of the financial crisis.

Free trade also means that global competition can enter the local market, leading to more options on the shelves for consumers and in many cases to lower prices. Foreign suppliers can sell goods at similar conditions to local suppliers, increasing competition and causing prices to drop.

Here are some key benefits of free trade:

  • Increased economic growth
  • Foreign direct investment creates new jobs
  • Lower prices for consumers

These benefits are not just theoretical; they have been observed in countries that have implemented free trade agreements.

Types of Funds

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On Freetrade, you'll find three major types of funds for retail investors: Exchange Traded Funds (ETFs), Investment Trusts, and Mutual Funds/Open-Ended Investment Companies.

ETFs are traded on a stock exchange, can be bought and sold throughout the day, and are always actively managed. Their price is based on demand and supply on the exchange.

Investment Trusts are set up by creating a fixed number of shares, which are then sold to the public or institutions. This allows investors to buy and sell shares on a stock exchange, but the amount of money invested by the trust remains the same.

Here's a quick rundown of the key differences between ETFs and Investment Trusts:

  • ETFs: traded on a stock exchange, can be bought and sold throughout the day, always actively managed.
  • Investment Trusts: set up by creating a fixed number of shares, shares can be bought and sold on a stock exchange, but the amount of money invested remains the same.

For Retail Investors, There Are Three Major Types of Funds:

For retail investors, there are three major types of fund: exchange traded funds (ETFs), investment trusts, and mutual funds/open-ended investment companies. These are the most relevant and common types for retail investors.

For another approach, see: Types of Private Investment Funds

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ETFs are available on Freetrade, while mutual funds/open-ended investment companies are not. This is a significant difference to consider when choosing a fund.

Here are the three major types of fund:

  • Exchange traded funds (ETFs)
  • Investment trusts
  • Mutual funds/open-ended investment companies

A fund's type doesn't determine its strategy, so don't worry if you're not sure which type to choose.

Discover more: Options Settlement T 1

Why We Offer ETFs and ETNs, Not Mutual Funds

We offer exchange traded funds (ETFs) and trusts, but not mutual funds, because ETFs are more innovative and flexible vehicles that give investors the ability to track huge indexes or asset classes with transparent prices and liquidity throughout the day.

ETFs are generally lower in fees because they're more likely to be passive, and they offer customers more control over their investments. This is a key factor in our decision to focus on ETFs.

One of the main reasons we don't offer mutual funds is that they lack transparency and customer control, which are essential for investors to make informed decisions about their money.

Credit: youtube.com, ETF vs ETN (Differences Between Exchange-Traded Funds and Exchange-Traded Notes)

ETFs can be used to build fully diversified portfolios with generally as low or lower fees and more control over investments. This is a major advantage over mutual funds.

By choosing ETFs, investors can potentially save money on fees and have more control over their investments, which is a major benefit for those looking to grow their savings and protect against inflation.

Active management tends to be more expensive, which is reflected in the fees charged by mutual funds and other active management products.

Additional reading: Major Equity Markets

Freetrade Investment Options

You can invest in over 12,000 international stocks and ETFs with Freetrade, including well-known companies like Amazon and Google.

Freetrade offers a range of investment options, including individual stocks, ETFs, and a selection of investment portfolios.

With Freetrade, you can start investing from just £1, and there are no management fees or hidden charges.

Their platform is designed to be user-friendly, making it easy to get started with investing, even if you're a complete beginner.

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Credit: pexels.com, Wooden tiles spelling ETF growth on a wooden surface, symbolizing investment strategy.

You can also invest in a range of ETFs, which allow you to spread your risk and diversify your portfolio.

Some popular ETFs on the Freetrade platform include the Vanguard FTSE 100 ETF and the iShares MSCI World ETF.

Investing in a portfolio is a great way to get started with investing, as it allows you to spread your risk and diversify your portfolio.

Freetrade's portfolios are designed to be low-cost and easy to understand, making them a great option for beginners.

If this caught your attention, see: Axa Im Nasdaq 100 Ucits Etf Usd Acc

Tommy Weber

Lead Assigning Editor

Tommy Weber is a seasoned Assigning Editor with a keen eye for detail and a passion for storytelling. With extensive experience in assigning articles across various categories, Tommy has honed his skills in identifying and selecting compelling topics that resonate with readers. Tommy's expertise lies in assigning articles related to personal finance, specifically in the areas of bank card credit and bank credit cards.

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