Freetrade vs eToro: Fees
One of the most confusing aspects of trading for newbies is the platform fee structure, but both eToro and Freetrade are very transparent about what costs you can expect. eToro has a list of fees that you’ll incur.
There is no commission when you trade ETFs or stocks, and eToro covers the regulatory transaction fees if and when you sell stocks. However, if you want to buy or sell crypto, there is a 1% fee. This is a flat fee that is technically a bid-ask spread for each trade.
This is a little confusing for those who have traded crypto using other platforms, as you don’t incur a fee each time you buy or sell an asset. Instead, you pay for the entire “round trip” in advance. So, you’ll pay a 1% fee on the purchase and a 1% fee for the eventual sale.
eToro has several other non-trading fees. There is, however, a foreign exchange fee when you make a deposit in currencies that are not supported by the platform, even if it's just a minimum deposit. There are also a withdrawal fee ($5 per withdrawal) and an inactivity fee ($10 per month). However, it's worth mentioning that other platforms have higher withdrawal fees.
While eToro offers only one general investment account, Freetrade works on a subscription model. There are three plans that you can choose from. The Basic account is free and provides access to commission-free trading on over 1,500 stocks and ETFs U.S fractional shares.
However, if you want access to stocks and shares ISAs and a greater variety of assets, you’ll need to upgrade to the standard plan. This is currently priced at £4.99 per month, but this plan does include automated order types. Standard plan users can also receive 1% interest on uninvested funds held in their accounts with a maximum cap of £2,000.
The top-tier plan is Freetrade Plus. This is essentially a hybrid between a savings account and an investment account. You’ll earn 3% interest on uninvested cash to a maximum deposit amount of £4,000. This plan also includes access to advanced investment tools and an expanded selection of stocks and ETFs, including specially curated collections. As a Plus user, you’ll also have access to priority customer support with an expanded support window.