Zero-cost trading with Freetrade's Stocks and Shares Isa becoming a reality: Assessing its stand against competing platforms.

In a move aimed at attracting more cost-conscious investors, Freetrade has announced significant changes to its platform. Starting from 1 September, the platform will offer Stocks and Shares Isas for free on its Basic plan, a move that could save Isa customers up to £72 a year in monthly fees.

Freetrade's Basic plan, which is currently free but only for standard accounts, will soon include Isa accounts as well. Free customers will have access to automated order tools, including recurring orders, limit orders, and stop losses. The plan will provide access to a full range of 6,400+ global equities, ETFs, and trusts.

To make Freetrade even more competitive, the platform is expanding the choice of investments available to free customers. Over the coming months, Freetrade plans to introduce hundreds more Vanguard funds to its platform. This move will make Freetrade a more attractive option for those who prefer a diverse investment portfolio.

Freetrade's CEO, Viktor Nebehaj, stated that the Isa should be the default investing account for beginners. He believes that these changes will make Freetrade more accessible to a wider audience.

While Freetrade's free plan offers a range of benefits, it's worth noting that FX fees on this plan are currently high, at 0.99%. However, Freetrade's Standard plan, which costs £5.99 per month or £59.88 per year, includes mutual funds and has a reduced FX fee of 0.59%. Freetrade's Plus plan, which costs £11.99 per month or £119.88 per year, includes a Sipp and has a reduced FX fee of 0.39%.

Trading 212, another well-known platform, charges a lower FX fee of 0.15%. However, Trading 212 is a platform with no account fees and access to over 13,000 global stocks and ETFs, making it a competitive option as well.

InvestEngine, a streamlined platform for investing in ETFs only, could also suit investors who want to build a portfolio with minimum fuss. Prosper, another platform without account fees, can refund the ongoing fees on around 30 index funds, offering potentially zero-cost investing.

Other platforms currently offering free services similar to Freetrade include Quanloop, Mintos, InRento, Bondora Go & Grow, LANDE, TWINO, InSoil Finance, Fintown, Debitum, and Viainvest. Many of these platforms provide cashback or bonuses without account fees. Freedom24 also offers no deposit or account management fees, though it charges transparent trading fees.

With these changes, Freetrade is set to become a more competitive option for cost-conscious investors. The increased choice of investments for paying customers should lead to Freetrade more keenly competing against platforms like AJ Bell and Interactive Investor, especially when paying annually.

Freetrade is currently running a summer offer that gives 1% cashback when topping up an Isa with £5,000 or more, capped at £200. This offer, along with the slashing of fees for its stocks and shares Isa and the introduction of a full range of investments to free customers from 1 September, makes Freetrade an attractive choice for those looking to start or expand their investment portfolio.