Is Freetrade Safe? What UK Investors Should Know in 2026
Yes, Freetrade is a legitimate, FCA-authorised UK investment app (FRN 783189), and eligible client assets are protected by the Financial Services Compensation Scheme up to £85,000 per person if the firm fails. Your investments are held separately from Freetrade's own money. Capital at risk.
Reviewed by Yaniv Barshaf · Fees verified June 2026 · Our methodology
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FCA authorisation and what it means
Freetrade operates under the authorisation and supervision of the Financial Conduct Authority, the UK's financial regulator, with Firm Reference Number 783189. FCA authorisation is not a rubber stamp: it requires the firm to meet capital requirements, follow strict client-money and client-asset rules, treat customers fairly, and report regularly to the regulator. You can confirm Freetrade's status yourself at any time by searching the FCA Register using that reference number. This authorisation is the foundation of every other protection described on this page, because it brings Freetrade within the scope of the FCA's Client Assets rules and the compensation scheme. Founded in 2016, Freetrade has grown into one of the larger UK commission-free investing apps, but size matters less than regulatory standing when you are judging safety. As of July 2026 the figures and status here reflect Freetrade's published information. Capital at risk.
FSCS protection up to £85,000
Eligible Freetrade customers are covered by the Financial Services Compensation Scheme. The FSCS protects investments up to £85,000 per person, per authorised firm, if that firm fails and cannot return your money or assets. This cover exists precisely for the worst-case scenario in which a regulated firm collapses and there is a shortfall. It is important to understand what the £85,000 limit applies to: it is a per-person, per-firm cap on losses caused by the firm failing, not a guarantee against your shares falling in value. If you hold more than £85,000, only up to that amount would be compensated in a default, so very large portfolios may sit partly outside the cover. Freetrade sets out its FSCS position on its own learning pages, and as of July 2026 the £85,000 investment limit applies. Capital at risk.
What if Freetrade goes bust?
This is the question most people really want answered. Your shares, ETFs and investment trusts are not owned by Freetrade; they are held on your behalf in a separate nominee structure, ring-fenced from the company's own assets under the FCA's Client Assets rules. If Freetrade were to fail, those investments would not form part of the firm's estate and could not simply be used to pay Freetrade's creditors. In an orderly wind-down, an administrator would work to return client assets or transfer them to another provider. If there were a shortfall in that process, or costs of returning assets, eligible clients could then claim on the FSCS up to £85,000. So the practical answer is layered: segregation first, then FSCS as a backstop. It is not instant and not entirely frictionless, but it is a genuine, regulated safety net rather than a marketing promise. Capital at risk.
What protection does NOT cover
Neither FSCS cover nor segregation protects you from investment losses. If a stock you buy through Freetrade falls in value, or an ETF drops, that is normal market risk and no compensation scheme exists to reimburse it. The £85,000 FSCS limit applies only if the firm itself fails and cannot return your eligible assets. It does not apply to poor investment decisions, market crashes, currency movements, or the value of individual holdings. Freetrade offers US fractional shares, and non-GBP trades carry a foreign-exchange cost as well as currency risk that can move against you. Understanding this distinction is central to using any investment app sensibly: regulation and compensation schemes protect you against firm failure and misconduct, not against the ordinary ups and downs of investing. Never invest money you cannot afford to lose, and treat past performance as no guide to the future. Capital at risk.
How a free app makes money honestly
A reasonable safety question is: if Freetrade charges no dealing commission on stocks and ETFs, how does it survive, and does that create hidden risk? The answer is transparent. Freetrade earns revenue from foreign-exchange fees on non-GBP trades, currently 0.99 percent on the free Basic plan, falling to 0.59 percent on Standard at 5.99 pounds a month and 0.39 percent on Plus at 11.99 pounds a month, as of July 2026. It also earns from those paid subscription tiers, from interest on cash held in accounts, and from related services. This is a conventional, disclosed business model, not a reason for concern. There is no inactivity fee and no minimum deposit, and the free Basic plan still includes a Stocks and Shares ISA and a SIPP. Knowing exactly how a provider is paid is part of judging whether it is trustworthy, and Freetrade's model is straightforward. Capital at risk.
The bottom line
Freetrade is a genuinely safe, FCA-authorised UK investment app. Client assets are segregated and eligible customers have FSCS cover up to £85,000 if the firm fails, verified as of July 2026. Its revenue from FX fees, subscriptions and interest is transparent. Remember that no protection covers market losses: your capital is always at risk when investing.
Freetrade
Best free ISA and SIPP for commission-free UK investing
Capital at risk. This is not financial advice. Investing involves risk of loss.
Frequently Asked Questions
Is Freetrade regulated in the UK?
Yes. Freetrade is authorised and regulated by the Financial Conduct Authority under Firm Reference Number 783189. You can verify this yourself on the FCA Register. Authorisation brings it within the FCA's client-asset rules and the FSCS compensation scheme, as of July 2026.
Are my investments safe if Freetrade fails?
Your shares and ETFs are held separately from Freetrade's own money in a nominee structure, so they are ring-fenced if the firm fails. Eligible clients are also covered by the FSCS up to £85,000 per person if there is a shortfall. Capital at risk.
Does FSCS cover investment losses?
No. The FSCS £85,000 limit applies only if Freetrade fails and cannot return your eligible assets. It does not compensate you for shares or ETFs falling in value, currency movements, or poor investment decisions. That is ordinary market risk you carry yourself.
How does Freetrade make money with no commission?
Freetrade earns from FX fees on non-GBP trades, paid Standard and Plus subscriptions, and interest on cash, as of July 2026. It is a transparent, disclosed model. There is no inactivity fee and no minimum deposit on the free Basic plan.