Plus500 Vs Freetrade

Category: Broker Guides | Author: Trading Brokers | Date: July 24, 2023

In the fast-paced world of finance, traders are faced with the critical task of choosing the right platform to execute their investment strategies. This article offers a detailed and impartial examination of two prominent trading platforms: Plus500 and Freetrade. By analyzing their features, functionalities, user experiences, and pricing models, we aim to provide readers with valuable insights into the similarities, differences, strengths, and weaknesses of these platforms. Armed with this knowledge, investors will be better equipped to make informed decisions when selecting the trading platform that aligns with their specific needs and aspirations.

Overview of Plus500

Plus500

Plus500

Plus500 is a well-established and renowned trading platform that offers a wide range of features and tools to traders of all levels of experience. With a user-friendly interface and intuitive design, Plus500 allows traders to access a diverse selection of financial instruments, including stocks, indices, commodities, cryptocurrencies, and more.

One notable feature of Plus500 is its advanced trading technology, which includes real-time market quotes, interactive charts, and customizable trading indicators. Additionally, the platform offers a comprehensive suite of risk management tools, including stop-loss orders and trailing stops, enabling traders to protect their investments and manage their positions effectively. Plus500 also provides a mobile application, enabling users to trade on the go and stay updated with real-time market movements.

With its extensive asset selection, user-friendly interface, and robust risk management features, Plus500 stands out as a reliable and versatile trading platform for traders seeking a seamless and efficient trading experience.

Pros of Plus500

  • Wide range of financial instruments including stocks, indices, commodities, and cryptocurrencies.
  • User-friendly interface and intuitive design for easy navigation.
  • Advanced trading technology with real-time market quotes and interactive charts.
  • Customizable trading indicators to assist in technical analysis.
  • Comprehensive suite of risk management tools, such as stop-loss orders and trailing stops.

Cons of Plus500

  • Limited educational resources and research tools compared to some competitors.
  • Limited availability of certain markets and assets in some regions.
  • Inactivity fees may apply if an account remains unused for an extended period.
  • Limited order types and execution options compared to more advanced platforms.
  • Customer support response times can vary, leading to potential delays in issue resolution.

Founded in 2008, Plus500 is a regulated and leading online trading broker providing a large range of 2,000+ CFD instruments for trading on their proprietary trading platforms with very competitive trading conditions.

80% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Overview of Freetrade

Freetrade

Freetrade

Freetrade is a prominent trading platform that caters to both novice and experienced investors, offering a diverse range of features and services. With a user-friendly interface and a focus on simplicity, Freetrade allows users to trade a wide variety of stocks and ETFs without incurring commission fees. This unique feature sets Freetrade apart from many traditional brokers, making it an attractive option for cost-conscious traders.

Furthermore, Freetrade provides a comprehensive suite of research tools and educational resources to help users make informed investment decisions. These include company profiles, financial news updates, and analyst ratings, empowering traders with valuable insights.

The platform also offers a user-friendly mobile application, ensuring convenient access to markets on the go. With its commission-free trading model, extensive research tools, and emphasis on simplicity, Freetrade stands out as an inclusive and accessible platform for investors looking to engage in the stock market.

Pros of Freetrade

  • Commission-free trading on a wide range of stocks and ETFs.
  • User-friendly interface with a focus on simplicity and ease of use.
  • Comprehensive research tools and educational resources to assist in making informed investment decisions.
  • Accessible mobile application for trading on the go.
  • Option to invest in fractional shares, allowing users to buy smaller portions of expensive stocks.

Cons of Freetrade

  • Limited selection of asset classes compared to some other platforms.
  • Absence of advanced trading features like options trading or margin trading.
  • Limited availability of international markets and stocks outside of the UK and US.
  • No support for retirement accounts like IRAs (Individual Retirement Accounts).
  • Customer support response times can vary, potentially leading to delays in issue resolution.
Freetrade Logo

Freetrade is a UK-based financial technology company which offers a freemium share dealing service. They make it simple to invest and trade in the stock market, commission-free.

The value of investments can go up as well as down and you may receive back less than your original investment.

Comparing Plus500 and Freetrade

Let’s look at some key factors to consider when choosing between Plus500 and Freetrade:

Regulation

When it comes to regulation, Plus500 sets itself apart by being regulated by multiple reputable authorities. It holds licenses from the Financial Conduct Authority (FCA) in the UK, the Cyprus Securities and Exchange Commission (CySEC) in Cyprus, the Australian Securities and Investments Commission (ASIC) in Australia, the Monetary Authority of Singapore (MAS) in Singapore, the Financial Sector Conduct Authority (FSCA) in South Africa, the Seychelles Financial Services Authority (SFSA) in Seychelles, and the Dubai Financial Services Authority (DFSA) in Dubai. This multi-regulatory oversight ensures that Plus500 adheres to strict standards and provides a higher level of investor protection. On the other hand, Freetrade is regulated solely by the Financial Conduct Authority (FCA) in the UK, which still ensures compliance with important regulatory requirements but may be limited in terms of international scope.

Trading Platforms

In terms of trading platforms, our experts have found that Plus500 offers a highly intuitive and user-friendly platform. Its interface is designed to provide a seamless trading experience, making it easy for both novice and experienced traders to navigate and execute trades efficiently. On the other hand, Freetrade’s trading platform has been rated as less user-friendly compared to Plus500. However, Freetrade compensates for this with a dedicated mobile app available for iOS and Android devices, allowing traders to access the markets on the go. Plus500, recognizing the importance of mobile trading, offers both a web-based trading platform and mobile apps for iOS and Android devices, providing traders with flexibility and convenience.

Pricing and Fees

Plus500 charges no withdrawal fee and has average forex CFD fees. There is an inactivity fee of $10 per month, but it’s charged only if you don’t log in to the platform for three consecutive months. Freetrade offers commission-free trading for stocks and ETFs, which means you don’t have to pay any fees when you buy or sell these instruments. There are no account, inactivity, or withdrawal fees either. However, there is a high, 0.45% fee for converting your funds to USD, which can add up if you trade frequently or in large amounts. You can avoid this fee by upgrading to Freetrade Plus, which costs £9.99 per month and gives you access to more features and markets.

Broker Type

Plus500 is a market maker broker, which means it takes the other side of your trades and may have a conflict of interest with you. This also means that it sets its own prices and spreads, which may not reflect the actual market conditions. Freetrade is an execution-only broker, which means it only executes your orders and does not provide any advice or recommendations. This also means that it does not take any risk or charge any spreads on your trades. Instead, it uses third-party market makers to provide liquidity and quotes for your orders. Freetrade is also an agency broker, which means it acts as an intermediary between you and the market and does not trade for its own account.

Social Trading

Neither Plus500 nor Freetrade offer social trading features. Plus500 focuses on CFD trading and lacks copy-trading tools or social network integration. Freetrade focuses on long-term investing in stocks and ETFs, with no social trading options, but they have an active online community on their forum and provide educational content through their blog and podcast.

Leverage

For traders interested in leveraging their positions, Plus500 offers leverage options. It provides leverage up to 1:30 for retail clients and up to 1:300 for professional clients. Leverage allows traders to amplify their exposure to the markets and potentially increase their profits. Freetrade, on the other hand, does not offer leverage, making it a more suitable option for traders who prefer a non-leveraged approach or are looking for a more conservative investment strategy. Freetrade is focused on long-term investing rather than speculation. This means that you can only trade with the money you have in your account, which limits your risk but also your returns.

Asset Selection

Our experts have found that while Freetrade offers a solid selection of stocks and ETFs, Plus500 provides access to a broader range of markets and products. Plus500 allows traders to access a diverse range of financial instruments, including stocks, indices, commodities, cryptocurrencies, options, ETFs, and more. This extensive asset selection gives traders the opportunity to explore different markets and diversify their portfolios. Additionally, Plus500 excels in research and education resources, providing valuable tools and insights to help traders make informed investment decisions. Freetrade, while focused primarily on stocks and ETFs, may offer a slightly more limited selection compared to Plus500.

Minimum Deposit

Freetrade distinguishes itself by not imposing any minimum deposit requirements. This makes it accessible for traders with different investment budgets, allowing them to start trading with the amount they are comfortable with. On the other hand, Plus500 requires a minimum deposit of $100 for most countries, which may be a consideration for traders with limited initial capital.

Withdrawal and Deposit Methods

Plus500 offers more withdrawal and deposit options compared to Freetrade. Both allow bank transfers, but Plus500 supports credit/debit cards (Visa/Mastercard) and electronic wallets (PayPal/Skrill) without charging fees for deposits or withdrawals. However, currency conversion fees may apply if different from the account base currency. Plus500 allows up to five free withdrawals per month, and withdrawals are usually processed within 1-3 business days. On the other hand, Freetrade only supports bank transfers for deposits and withdrawals, with no fees for such transactions, but currency conversion fees may apply. Deposits can take up to 2-4 hours on weekdays, while withdrawals can take up to 3-5 business days.

Plus500 or Freetrade: Which is Best for You?

Choosing between Plus500 and Freetrade ultimately depends on your specific preferences, trading goals, and investment style. If you’re someone who values a wide range of markets and instruments, along with advanced research tools and educational resources, Plus500 may be the better choice. Its regulated status, user-friendly platform, and robust risk management features make it suitable for both novice and experienced traders. Additionally, if you’re interested in leveraging your positions or trading various financial derivatives, Plus500’s CFD offering provides greater flexibility. On the other hand, if you prioritize commission-free trading, a user-friendly mobile app, and no minimum deposit requirements, Freetrade could be the more suitable option. It caters to cost-conscious traders looking to invest in stocks and ETFs, with a focus on simplicity and accessibility. Freetrade’s commitment to inclusive investing and its easy-to-use platform makes it appealing to beginners or those with limited funds. Ultimately, it’s important to evaluate your specific needs, preferred asset selection, desired features, and regulatory considerations to determine which platform aligns best with your individual requirements.

Conclusion

In the comparison between Plus500 and Freetrade, both trading platforms offer distinct advantages depending on individual trading preferences and goals. Plus500 stands out with its wide range of markets, advanced research tools, and regulated status, making it suitable for traders seeking diversity and comprehensive trading features. Freetrade, on the other hand, appeals to cost-conscious traders with commission-free stock and ETF trading, a user-friendly mobile app, and no minimum deposit requirements. Ultimately, the choice between Plus500 and Freetrade hinges on factors such as desired asset selection, fee structures, platform usability, and regulatory oversight. By carefully considering these factors, traders can make an informed decision and select the platform that best suits their unique trading needs.


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