As Trading 212 stopped being free, the big question is which investing app is now the cheapest?
There are a few different contenders that are priced cheaply compared to the much more expensive traditional options that charge big annual fees and high transaction fees.
These are (In no particular order):
1. Trading 212
2. Freetrade
3. eToro
4. Stake
5. Degiro
6. IG
I will explain exactly what the main fees of all of these platforms are and how they compare.
Then I will tell you which is the cheapest depending on how you plan to invest - there are a few different answers depending on what you do!
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DISCLAIMER: Some of these links may be affiliate links. If you purchase a product or service using one of these links, I will receive a small commission from the seller. There will be no additional charge for you.
DISCLAIMER: I am not a financial advisor and this is not a financial advice channel. All information is provided strictly for educational purposes. It does not take into account anybody's specific circumstances or situation. If you are making investment or other financial management decisions and require advice, please consult a suitably qualified licensed professional.
There are a few different contenders that are priced cheaply compared to the much more expensive traditional options that charge big annual fees and high transaction fees.
These are (In no particular order):
1. Trading 212
2. Freetrade
3. eToro
4. Stake
5. Degiro
6. IG
I will explain exactly what the main fees of all of these platforms are and how they compare.
Then I will tell you which is the cheapest depending on how you plan to invest - there are a few different answers depending on what you do!
SIGN UP TO INVEST WITH ETORO (MIN DEPOSIT $200)
https://med.etoro.com/B15358_A95689_TClick_SSasha.aspx
67% of retail investor accounts lose money when trading CFDs with this provider. Your capital is at risk. Other fees may apply.
GET A FREE SHARE WORTH UP TO ยฃ200 WITH FREETRADE
https://magic.freetrade.io/join/sasha-yanshin
You need to sign up and make any deposit to get the free share.
GEAR I USE FOR MAKING VIDEOS
https://kit.co/sashayanshin
DISCLAIMER: Some of these links may be affiliate links. If you purchase a product or service using one of these links, I will receive a small commission from the seller. There will be no additional charge for you.
DISCLAIMER: I am not a financial advisor and this is not a financial advice channel. All information is provided strictly for educational purposes. It does not take into account anybody's specific circumstances or situation. If you are making investment or other financial management decisions and require advice, please consult a suitably qualified licensed professional.
Hey guys, it's sasha. So until now the question of what is the cheapest investing app in uk had a very simple answer. It was trading two on two. They attracted 1.4 million customers with a completely free proposition, but they've just introduced a new fee.
They now charge 9.15 for foreign exchanges, so anytime you go and buy any stocks or any etfs or anything else in the currency other than the one in which your account is in. In my case pounds you will have to pay that fee now. That fee is still very, very cheap, but suddenly the question of which platform is the cheapest doesn't have a simple answer. In fact, there are multiple different answers, depending on exactly what you do and how you do it.
I actually went and did a comprehensive write down of exactly what the different charges from all the different platforms out there are and exactly how much it would cost you uh to do different kinds of trades and i'm gon na explain exactly what the answers are. Just for clarity, if you are a billionaire and watching this video - and you have nothing else to do with your billions um, some additional platforms do exist where charges such as like 12 pounds per trade might actually be cheaper for you, because they're not percentage based, and They will actually probably be very, very cheap in your case, but for mere chumps like me, who don't have that kind of money? Who'll just maybe have a few thousand or something like that to go and invest um. I am not going to be covering those platforms. I'm just going to be covering uh the ones that are accessible to regular normal everyday investors.
I will also in this video not talk at all about the features of these platforms, because that will make this video very very long. I'm just going to be talking about the costs. Now i'm going to be talking about the different platforms that are all classed as cheap and i'm going to cover all the different ones, including all the ones that people keep mentioning in my comments, just so that people know that i've considered all of them so that You understand exactly where the value might be, specifically the ones i'm going to be talking about are trading 212 free trade, etoro stake the jira and ig now i'll do a very quick rundown of each individual platform so that you know what the key fees are. I'm not going to mention every single one and i'm going to explain why as i go through them, but and i'm also going to ignore cfds, crypto trading and all of that kind of stuff, because i'm just talking about regular investing in this video.
If you want to understand that side, you need to go and do your own research for yourself outside this video. I'm also going to ignore stocks and shares isa accounts from this video. I'm going to make a separate video about those accounts and the relative pricing that i'm going to release at some point very soon, because that's a different question and that doesn't apply to anyone who isn't in the uk as well. Now here is the summary: trading212 remains incredibly cheap. The only fee that you have to pay as it stands from the 3rd of april 2021 is the 0.15 for an exchange fee and every transaction in a currency. That is not the one of your account deposits via card cost not 0.7 as of several weeks ago for anything over 2000, but bank transfers are still free and they are pretty much immediate now, so it doesn't really matter. You don't have to pay that fee. So that's the the final exchange fee is the only one.
Next up is free trade, free trade charges not point four: five percent foreign exchange fees on the same foreign transactions, but that is the only fee that they do charge. Unless you want to set up the iso, which is three pounds a month um, there are less features and some are hidden behind a paywall. So the plus account does allow you things like limit orders or stop losses and things like, but you do have to pay that extra fee, for that a big difference is that they went and put all these fees out there up front. They didn't go and do any kind of pretending that they're, free or very cheap and then introduce them.
So there's definitely a big plus for me on the honest and transparency side there. Now next is etoro. It's already have a 0.5 fee for loading money into the account that isn't in us dollars and another 0.5 percent plus five dollars in order to withdraw it. Now, that's for pounds and euros if you use a different currency and you want to transfer a different currency.
Your charges may be higher as they are for some other ones. Some people find that they can actually go and convert the money cheaper elsewhere, like through revenue to somewhere else, but i'm gon na not talk about these alternatives because for the majority they're not going to be doing that, so that's the only fee. That's even if you're going to have to pay for regular investing, like the kind of that i do, and the beauty here is that it doesn't apply to every single trade like with free trade and training 212, and that's where it gets a bit interesting. Interestingly, also etoro don't charge uk stamp duty on investing in big uk stocks, unlike every other broker, and they actually pay it themselves, which means they are really interesting when it comes to buying uk stocks.
We're gon na get come to that in just a second um. Other than that there are no other uh fees, there are a lot of fees, as i mentioned previously on cfds and crypto. They don't apply to the kind of stuff i'm talking about, so i'm not gon na talk about them. Stake it's a relatively new app.
It got a lot of coverage and a short space of time. You might have noticed on youtube with some of the big youtubers, because they ran a campaign shall we say with influencers um and they have a very similar 0.5 foreign exchange fee to etoro. When you load the money in but they charge a two dollar fee, when you would draw on top of that rather than the five dollars uh. So so that's pretty good, although there is a minimum there's a two dollar minimum on that foreign exchange fee. So that means, if you deposit, withdraw less than 400 you're gon na be paying two dollars as a flat fee, and so it's only 0.5 percent for larger amounts above 400. Now for anyone who wants to try to cheat the system like with etoro, you can't really do it here, because, if you go outside of their app to go and convert and then load dollars in you're still gon na have to pay five dollars per transfer because They thought of that uh trick, so there's no way of doing it for free now i know i said i'm not going to talk about features, and i am not, but here is a really important point. Deposits and transactions on stake are incredibly slow compared to all the other platforms i'm going to be talking about. You have to wait for days to wait for your money to come in, and you also can only trade with cleared funds with other ones.
You don't have to wait until the money's cleared in order to reinvest and that's really important, because you have to wait two full days for transaction to settle. So if you sell something, that's how you have to wait before you can buy back. If you want to trade instantly like on the other apps, you do have to pay an extra nine dollars per month for state black and another 0.5 percent to have your deposit available the very next day, so not immediate, but the next day. So it is just someone to consider, because, although these are not compulsory fees, they will still apply now the jury.
They do seem to be getting more popular, i'm getting a lot more comments on them, but their pricing structure is incredibly complicated. It is crazy compared to the other apps. It is very long. There are different profiles that you can choose when you first set up the account, depending on what you're planning to do with the account whether you're sort of a long-term investor or an active day trader.
But the fees are roughly similar and pretty much the same for the key stuff that i'm going to be talking about now to trade stocks on the london stock exchange cost one pound 75 plus 0.14 for a maximum of five pounds. Although that five pounds only kicks in at like 23 000 or something like that us stocks, cost 50 euro cents, plus four us cents per share, i did tell you, i did warn you. These are crazy and weirdly. Complicated higher fees do apply to other markets as well: ets cost 2 euros plus 0.03 to trade.
You then have to pay 2 euros 50 per year to connect to each exchange. In order for you to be able to trade honest, for example, if you buy stocks on nasdaq and on new york stock exchange and some others, you have to pay 250 per one to connect to it, except your home exchange, which is free. So, for me, that would be my london stock exchange. For example. I know i did warn you. This is really weirdly complicated. Then, on top of this, you need to pay extra five euros to get live prices from nasdaq, for example, but that feature is not even available on some other big markets like the new york stock exchange. There are a lot, a huge number of other fees listed in here that i'm not going to cover in this video.
So if you want to find out all the other ones, you can go and read, these are probably the most important ones. That probably would apply to the majority people. A lot of the other ones probably will not. Last on my list is ig.
They also have a 0.5 foreign exchange fee, but they do allow you to hold money in u.s dollars in your account, which means it can be a one-off fee like with the toronto and stake. I i'm going to come to that in just a second there's a but other fees with ig do depend on your activity. If you make three or more trades per month, uh you'll pay nothing to trade u.s stocks and you only pay three pounds to trade shares per trade on lse online stock exchange. If you are less active, so if you don't make the three per month, you have to pay 10 pounds and eight pounds for those trades respectively.
However, there is one trick: if you look at a small print underneath it does say that the trade fees are only cheap like the ones i mentioned. If you can, let them convert their money using their foreign exchange fee. If you converted manually and use that money that you've converted to trade afterwards, you then have to pay a fee of 15 or more per trade. If you don't make three trades per month, you also have to pay a monthly custody fee of 24 pounds, which is quite expensive.
So, after all of that now i've, given you all the key fees for all the features for all the platforms that everyone keeps talking about, which is the cheapest well, let me break it down for you one. If you passively invest in uk stocks, then free trade and trading 202 are the cheapest platforms. They will charge you nothing. You only have to pay, not point five percent stamp duty when you buy those stocks with both of those platforms.
Stake is very, very close. They have that two dollar withdrawal fee being the only difference, but the big difference is the difference in features. So you have to wait for funds. You have to wait for money to settle before you can reinvest and that's a big factor um if you invest in uk stocks more actively.
So if you buy and sell them over time using the same money, then actually this changes etoro becomes the cheapest. You will lose 0.5 when you load money in and another 0.5 plus the five dollars when you draw the money out, but etoro covers stamp duty. So if you buy and sell two different uk stocks with the same money, then suddenly etoro will become the cheapest platform. Because after that, essentially you are not paying the standard duty, but you've already covered the cost of depositing withdrawing money. That 0.5, by not having to pay for the stamp duty, it's an interesting trick. So if you frequently invest in uk stocks and you move money between them, etoro actually becomes cheaper. If you invest in uk, based etfs that are priced in pounds like the vusa, for example, for the s p 500 - that i personally invest in, and free trade and trading to one two continue to be the cheapest options, where this is completely free other than the Cost of the etf itself, which is the same everywhere. If you passively, invest in u.s stocks, then trading 212 is still the cheapest platform and if he's just not point one five percent, when you trade, so that's roughly not point three percent.
If you buy and then sell, i know it's different, because the prices will change in between, but roughly speaking, um you're also going to lose 0.15 on any dividends that get paid to you from a u.s based company because they have to convert it into your base. Currency when you receive the money, however, if you invest in u.s stocks more actively, then etoro becomes the cheapest platform and you will lose one percent on foreign exchange fees. When you move money in and out, but then then there are no fees at all. Once you are inside the platform once the money is already in, if you buy and sell four different us stocks over time with the same funds, etoro becomes cheaper than trading two one two.
This is a really interesting point now, before anyone points it out. Stake is technically cheaper. Despite the lack of features, the withdrawal fee is only two dollars versus the five dollars for etoro and the 0.5 is the same. However, for active trading, the massive lack of features and stake, i think kind of negates that benefit, because you have to wait several days between being able to sell and then being able to buy.
And in the case that i'm discussing here, which is for the more active investor, that is a really important point, that can be a much bigger difference than that tiny difference in the fee in the long run. So, in my opinion that actually outweighs it, and so i think, on that basis, hitar is sochi, but by the way, if you're interested in opening an etoro account, you can do so by using my affiliate link in the description below you will get absolutely nothing for It you do not get any free shares, there's absolutely no benefit whatsoever. I get paid if you go and use my link, but you know it doesn't cost you anything either. So if you do want to do it, i would really appreciate it.
If you go and check them out, you do have to make a minimum deposit of 200 as well uh. But but anyway, if you invest in u.s dollar based etfs, exactly the same rules apply as due to u.s stocks and shares that i just mentioned in terms of which one comes out cheaper, just in case anyone has that question as well. I really hope that fight that helps people decide, which kind of is cheapest in terms of just the numbers make sure you smash the like button featured algorithm. If you want more people to be able to watch this video to make the decision for themselves - and thank you very much for watching - i really really appreciate it and i'll see you guys later. You.
Mrs Patricia is legit and her method works like magic I keep on earning every single week with her new strategy
I like T212 but only thing i hate is that they took the buy button away when i was trading GME previously and you cant buy majority of OTC stocks???? Is T212 really allowed to take the buy button away ๐คฆ๐ปโโ๏ธ
Great video as usual – quick question – if, each month on payday, I want to invest ยฃxx into stocks (and each month, its the same amount ยฃxx) – and buy more stock, but not necessarily sell/trade, just keep increasing my holding of shares, USA and UK – does that make me an active investor? Just trying to work out which is better for me, as if I'm buying US/UK stock each month and loading a platform with money each month, I'm guessing I am active (despite not trading, only buying) – so etoro should be my go to… this is all outside of my S&S ISA, as I currently have that for financial year 2021/2022 with Vanguard and into VUSA – hopefully I can get a freetrade acc. from April 2022 for a S&S ISA to buy VUSA
What would you recommend I use if I wanted to invest into both us & uk stocks. If I used my PayPal & based in the uk.
Hi Sasha, Thank you for the great videos. I am a first timer, novice in investment field and your videos really helped me to find out what is right for me. Also, used your link and hopefully you and I will receive the free share. Thank you!
Thank you for all the info you share in your channel. I have a question please: I have used trading 212 demo account and I really like the feature like when you entered a trade you can drag the stop loss and take profit levels yourself, do you know if there is another firm which has this feature on their trading platform? It is really convenient to trade on the trading 212 platform since apart from this easy type of stop/profit level setting, once you save your template you can open any chart and have the same template on it too which is very useful. I will be very glad if you could please find out if there is any other firm that provides the same charting platform as trading 212 since we cannot open an account with trading 212 anymore… Thank you again for your kind help.
Is it better to buy S&P 500 ETFs in GBP rather than USD if I am in the UK since I wouldn't lose money during conversion?
Doesn't this all depend what GBPUSD is doing? It has slaughtered my eToro & USD based things on 212 so much I bought a hedge ( long on cable – of course it's now looking bearish just to annoy me, heh)
It's possible to use Revolut to buy stocks and shares. How does Revolut compare with using the platforms that you mention in terms of costs and functionality?
Hi Sasha, please can you tell menwhich platform i can buy stocks of ovt or ovtz.. Freetrade does not have it available, apprantly it's on; vanguard brokerage service, TD Ameritrade, Robinhood, Fidelity etc.
hello again. I think I now know what I've done wrong. instead of opening your link on the web first to get another link being sent to my phone and then opening the account on my phone, using that link to get a free share, I just copied and pasted the whole link on my phone browser and then opened my account. is there a way to correct this and still get that free share even though my account is now opened ?
Hey sasha. I hope you are ok. I've just used your link (posted above) to open a free trade account and I have done my first trade but there is still no sign of any free share which you said we will get! could you please let me know how that works. Cheers
I do active investing in US stocks, Etoro is expensive because the spread on etoro is ridiculous. They are masquerading commission into spread
Thanks for this video ! Straight to the point and easily comprehensible. Can you please compare these brokers features too ? Since trading 212 is now closed I am looking for the same pie investing feature, do you know which other broker have that ? Also any news on when trading 212 will open again ? :/
Should I sell and move my individual T212 shares into my T212 ISA on April 6th or would the fees make it not worth it?
Isn't Degiro the best for their list of free ETFs? No fx fee, no transaction fee. U just pay the connection fee and TER
ะัะธะฒะตั, ะพัะตะฝั ัะฐะดะฐ, ััะพ ะฝะฐัะปะฐ ััะพั ะบะฐะฝะฐะป. ะฏ ะถะธะฒั ะฒ ะะฝะณะปะธะธ, ัะพะปัะบะพ ะฝะฐัะธะฝะฐั ัะธัะฐัั ะฟัะพ ะธะฝะฒะตััะธัะพะฒะฐะฝะธะต. ะะพะถะตัั ัะดะตะปะฐัั ะฒะธะดะตะพ ะฟัะพ broker fees ะธ ะบะฐะบ ะฒัะฑัะฐัั ะปัััะตะณะพ ะฑัะพะบะตัะฐ ะดะปั ัะฒะพะตะน ัะธััะฐัะธะธ ั ะพะฑัััะฝะตะฝะธัะผะธ. ะฃ ะผะตะฝั ัะตะนัะฐั ะตััั Trading 212, ะธ ะธะผะตะฝะฝะพ ะฑะปะฐะณะพะดะฐัั ัะฒะพะตะผั ะฝะตะดะฐะฒะฝะตะผั ะฒะธะดะตะพ ะฟะพะฝัะปะฐ, ััะพ ะตััั ัะบััััะต fees, ะพ ะบะพัะพััั ั ะฝะต ะธะผะตะปะฐ ะฟะพะฝััะธั
What abaut spread on t212 isn't this fee ๐คthat is ridiculous I have seen up to 25 % spread on my stock. T212๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ๐ฉ
Can anyone help me which app is the cheapest for international citizens (no Uk or eu citizens nor us )
I am lebanese and a lot of apps require a Uk or us Id or proof of residency.
Thanks ๐
I was interested until you said "Use my link below…" It's the equivalent of myself unboxing sports gear and then saying use my Puma code below.
When do you think Trading 212 can register new accounts? maybe after their changes in fee structures ? hope they do it soon.
@Sasha Yanshin Hey there, one thing maybe to mention, that you can open the Trading 212 Account in USD, and trade solely in USD….that would work as well, and most UK/EU stocks are available on US exchanges….safes you the fee, BUT puts the currency risk in place ๐ just thought might be also important to mention.
Thanks for this video itโs very informative. I use t212 so will I get charged on the foreign stocks I already own or will it take place on the next purchase of a foreign stock? Thanks
All of this is total nonsense. "Fees" are irrelevant, all the "free" platforms make money from you eventually.
Stop wasting time comparing platforms.
Good video Sasha, two questions re Trading 212 – are index funds included – I know you didn't go into features but it's not clear. The second question is more linked to cost – with Brexit is Trading 212 cost model (in the EU) different?
Is there a UK broker that could allow option trading + ISA account or that will never be a choice ?
Interesting.. in my experience DEGIRO has just charged a flat fee of ยฃ0.43-ยฃ0.45, when buying US stocks, making it cheaper than any of the others from what youโve mentioned.. am I missing something?
Great Video. I have T212, Freetade both are good. One thing I feel is missing is OTC stocks. Which l used risk but which platform is best for OTC?
Very very good video. I was looking for something like this since T212 came up with recent charges. Must have put in some shift to get all the info and do the analysis. Only one gripe. "Smash that like button!" Its a cringe phrase now, for me at least. I have subscribed your channel after watching a few vids.