Freetrade vs InvestEngine (2026):
which UK broker wins for ETF investors?
Both are commission-free, both now offer a free ISA, and both target the same self-directed UK investor. The real differences in 2026 are what you can buy, how FX costs stack up, whether cash earns interest, and the current status of InvestEngine’s managed service — which has been paused for new customers.
Some of the links on this site are affiliate links, meaning we may earn a commission at no extra cost to you if you sign up through them. This does not affect our reviews or recommendations — we only feature products we genuinely believe are useful for investors. This site provides educational content only, not personalized investment advice. Investments can lose value and past performance does not guarantee future results. You are responsible for your own financial decisions and for confirming the tax and legal rules that apply in your country.
TL;DR
- You want stocks, ETFs, mutual funds, and gilts in one place.
- Cash interest on uninvested money matters to you.
- You want a Junior ISA for a child.
- You plan to transfer a SIPP in-specie from another provider.
- You prefer a broader, more flexible investable universe.
- You invest exclusively in ETFs and want zero platform fee.
- You want zero FX fees (all ETFs are GBP-denominated).
- Auto-invest with target weights and one-click rebalancing is a priority.
- You run a business and want a corporate account alongside personal investing.
- You don’t need individual stocks or fund products beyond ETFs.
Head-to-head: the key numbers
All figures based on publicly available information as of April 2026. Always verify current terms on each broker’s website before opening an account.
| Feature | Freetrade | InvestEngine |
|---|---|---|
| Platform fee | Free (Basic) / £5.99/mo (Standard) / £9.99/mo (Plus) | Free (DIY) / 0.25%/yr (Managed — currently paused) |
| Trade commission | £0 | £0 |
| Stocks and Shares ISA | Free — included in Basic plan | Free — included in DIY account |
| SIPP / pension | Free — included in Basic plan | Free — included in DIY account |
| Flexible ISA | Yes | Yes |
| Junior ISA | Yes — launched Jan 2026 | No |
| Business account | No | Yes |
| FX fee | 0.99% (Basic) / 0.59% (Standard) / 0.39% (Plus) | 0% — all ETFs are GBP-denominated |
| Cash interest | Yes — 1–5% depending on plan (see below) | No |
| Investable universe | 7,000+ stocks, ETFs, funds, gilts, trusts, bonds | 800+ ETFs only |
| Fractional shares | Yes | Yes |
| Recurring investing | Yes | Yes — with target weights and auto-rebalancing |
| Managed portfolios | No | Paused — unavailable to new customers |
| In-specie transfers | Yes | No |
| FCA regulated | Yes | Yes |
| FSCS protection | Yes (up to £85,000) | Yes (up to £85,000) |
| Available to EU investors | No (UK residents only) | No (UK residents only) |
What things actually cost in 2026
Both platforms are “free” in the headline sense. The real cost comparison is about FX fees and plan tiers — not commissions, which are zero on both.
| Plan | Monthly cost | FX fee | Cash interest | Includes |
|---|---|---|---|---|
| Basic | Free | 0.99% | 1% on up to £1,000 | ISA, SIPP, GIA, all stocks/ETFs/funds/gilts |
| Standard | £5.99/mo | 0.59% | 3% on up to £2,000 | Everything in Basic + lower FX, higher interest |
| Plus | £9.99/mo | 0.39% | 5% on up to £3,000 | Everything in Standard + lowest FX, highest interest |
ISA, SIPP, mutual funds, and gilts are all included in the free Basic plan as of January 2026. You only need a paid plan if you want a lower FX fee or higher interest rate on cash.
- DIY account: £0 platform fee, £0 FX fee — all ETFs trade in GBP, so no currency conversion ever takes place.
- Managed/LifePlan account: 0.25%/year — currently paused for new customers (see below).
- No commission on trades, no deposit or withdrawal fees.
- ETF TERs (ongoing fund costs, typically 0.05–0.20%) apply on both options and are charged by the fund provider, not InvestEngine.
- No interest paid on uninvested cash.
Uninvested cash: Freetrade pays, InvestEngine doesn’t
This is one of the clearer functional differences between the two platforms in 2026 — and it matters most for investors who regularly hold cash between contributions.
- Basic (free): 1% on up to £1,000
- Standard (£5.99/mo): 3% on up to £2,000
- Plus (£9.99/mo): 5% on up to £3,000
- Paid on uninvested cash across ISA, SIPP, and GIA
InvestEngine does not pay interest on uninvested cash. This is a deliberate part of the business model — the platform is designed for investors who invest their cash rather than hold it. If you want your idle cash working while it waits, Freetrade has a clear edge here.
An alternative for EU-accessible investors is Trading 212, which pays interest on uninvested cash across the EU and UK.
InvestEngine managed portfolios: currently paused
If you were considering InvestEngine for its managed service, this is the most important thing to know before opening an account.
InvestEngine paused both its Managed Portfolio service and its LifePlan portfolios for new investors. InvestEngine has stated it is working on improvements to the portfolio-building questionnaire, but no timeline has been confirmed. As of April 2026, these services remain closed to new customers.
Existing managed portfolio and LifePlan customers are unaffected and continue to receive the service.
The full DIY service remains open. New customers can build and manage their own portfolio from InvestEngine’s catalogue of 800+ ETFs, with free auto-invest, savings plans, and one-click rebalancing. This covers the needs of most passive ETF investors without needing a managed account.
- Stocks and Shares ISA — free, no platform fee
- SIPP — free
- General Investment Account — free
- Business Account — available
- 800+ ETFs with savings plans and auto-invest
Product range: breadth vs focus
This remains the most fundamental difference between the two platforms — and for most long-term passive investors, it shouldn’t be a problem either way.
Freetrade offers UK, US, and European stocks; ETFs; investment trusts; mutual funds (500+ including Vanguard); gilts; and bonds — all in one account. If you want to hold a handful of individual company shares alongside your index funds, or access managed Vanguard fund ranges not available on InvestEngine, Freetrade makes that easy.
The trade-off is complexity — more choice means more temptation to trade actively, which tends to hurt long-term returns.
InvestEngine is built entirely around ETFs — no individual stocks, no mutual funds, no gilts, no bonds. For investors following a simple index strategy, this constraint is a feature: the platform is designed to do one thing well.
The 800+ ETF catalogue covers major global indices, bonds, regions, and themes — sufficient for any long-term passive portfolio. Every ETF trades in GBP, which removes FX friction entirely.
If your strategy is 1–3 broad index ETFs held for decades, InvestEngine’s ETF-only focus is not a limitation — it’s a cleaner setup. The breadth of Freetrade’s catalogue only becomes relevant if you want to hold mutual funds like Vanguard LifeStrategy, individual company shares, or gilts alongside your passive portfolio. Most evidence-based passive investors don’t need any of that — but it’s worth knowing the option exists on Freetrade if your strategy evolves.
Recurring investing and auto-rebalancing
For long-term investors, the ability to automate monthly contributions and step back is more valuable than any other feature. Both platforms offer this — but InvestEngine’s implementation is more complete.
- Set recurring orders by frequency and amount per instrument
- Direct Debit support for automatic top-ups
- Works well for simple one or two-ETF setups
- Manual rebalancing required across multi-holding portfolios
- Fractional investing available, including on US stocks
- Set target allocation weights across your ETF portfolio
- New contributions are deployed automatically to maintain target weights
- One-click rebalancing to bring a drifted portfolio back on track
- Savings Plans: weekly, fortnightly, or monthly Direct Debit options
- Smart orders: deposits auto-split across all holdings in proportion
ISA, SIPP, and account types
Both platforms significantly expanded their free-tier account access in 2025 and early 2026. The wrapper landscape is closer than it used to be.
| Account / Wrapper | Freetrade | InvestEngine |
|---|---|---|
| General Investment Account | Free (Basic) | Free (DIY) |
| Stocks and Shares ISA | Free — included in Basic since Sept 2025 | Free — no extra charge on DIY account |
| Flexible ISA | Yes — withdraw and redeposit within same tax year | Yes |
| SIPP / pension | Free — included in Basic since Jan 2026 | Free — included in DIY account |
| Junior Stocks and Shares ISA | Yes — launched January 2026 | No |
| Business / corporate account | No | Yes |
| Lifetime ISA | No | No |
| In-specie transfers in | Yes — move investments without selling | No — must sell and transfer cash |
Not based in the UK? Here are your alternatives
Freetrade and InvestEngine are built for UK residents. If you are in Germany, the Netherlands, France, Italy, or elsewhere in the EU, neither platform is accessible to you.
- IBKR — best multi-currency, competitive FX, deepest UCITS ETF access across all EU countries
- DEGIRO — low-cost ETF investing across Europe, broad UCITS catalogue
- Trading 212 — commission-free, good for automation, recurring investing, and cash interest
- Trade Republic — strong automated savings plans, broadly available across the EU
- Scalable Capital — ETF savings plans with automated rebalancing, Germany-focused
- Lightyear — multi-currency account with competitive FX fees, EU and UK
Who each broker is actually built for in 2026
- You want ETFs and individual stocks in one place.
- Mutual funds (e.g. Vanguard LifeStrategy) are part of your plan.
- You want interest on uninvested cash between contributions.
- You’re opening or consolidating a SIPP and need in-specie transfers.
- You’re investing for children and need a Junior ISA.
- You’re comfortable paying a small FX fee or staying in GBP ETFs on the Basic plan.
- Your strategy is purely ETFs and you don’t need stocks or funds.
- Zero FX fees on all trades matter to you.
- You want the most complete auto-invest workflow — target weights, smart orders, one-click rebalancing.
- You run a business and want a corporate investment account alongside a personal one.
- You don’t need or expect a managed portfolio option anytime soon.
If you only invest in ETFs, want zero FX fees, and value target-weight auto-investing — InvestEngine’s DIY account is the cleaner choice. No platform fee, no subscription, and the automation tools are purpose-built for systematic ETF investing.
If you want breadth — individual stocks, mutual funds, gilts, a SIPP with in-specie transfers, cash interest, and a Junior ISA — Freetrade’s Basic plan now delivers all of that at zero cost. The FX fee on the Basic plan is the main friction point; upgrading to Standard or Plus closes that gap if your trades regularly involve non-GBP assets.
Ready to open an account?
Pick your platform, set up a recurring plan into 1–3 broad ETFs, and automate it. That’s the workflow that compounds. EU investors: IBKR remains the strongest option for multi-currency ETF investing across all EU markets.
Go deeper
Frequently asked questions
Is Freetrade or InvestEngine better for ETF investing?
InvestEngine has the edge for pure ETF investors: no platform fee, no FX fee (all ETFs trade in GBP), 800+ ETFs, and strong auto-invest tools with target-weight allocation. Freetrade is better if you also want individual stocks, mutual funds, gilts, or a Junior ISA alongside your ETF portfolio. Both are genuinely good platforms — the right pick depends on whether you want breadth or focus.
Does Freetrade charge for an ISA in 2026?
No. Since September 2025, Freetrade’s free Basic plan includes a Stocks and Shares ISA at no extra charge. As of January 2026, the Basic plan also includes a SIPP, mutual funds, and gilts. You only need a paid Standard or Plus plan if you want a lower FX fee (0.59% or 0.39% vs the Basic plan’s 0.99%) or higher interest on uninvested cash.
Which broker is cheaper — Freetrade or InvestEngine?
For a pure ETF portfolio in GBP, InvestEngine’s DIY account is cheaper: zero platform fee and zero FX fee. Freetrade’s Basic plan is also free, but the 0.99% FX fee applies to any non-GBP asset trades. If you stay entirely in GBP-denominated UCITS ETFs on Freetrade, the costs are comparable. If you regularly buy USD-priced assets, InvestEngine’s zero-FX model is a meaningful long-term advantage.
Does Freetrade pay interest on uninvested cash?
Yes. Freetrade pays cash interest at tiered rates: 1% on up to £1,000 on the free Basic plan; 3% on up to £2,000 on Standard (£5.99/mo); and 5% on up to £3,000 on Plus (£9.99/mo). InvestEngine does not pay interest on uninvested cash. If you regularly hold cash waiting to invest, Freetrade has a clear edge here, though the interest alone rarely justifies upgrading to a paid plan.
Does InvestEngine offer managed portfolios?
InvestEngine’s Managed Portfolios and LifePlan portfolios are currently paused and unavailable to new customers. InvestEngine has stated it is making improvements to its portfolio-building questionnaire, but no timeline has been given for when managed portfolios will reopen. Existing customers are unaffected. The full DIY account — with auto-invest, savings plans, and one-click rebalancing — remains open to all new customers.
Can EU (non-UK) investors use Freetrade or InvestEngine?
No. Both Freetrade and InvestEngine are UK-regulated platforms for UK residents. If you are based in the EU, you are unlikely to be eligible to open an account. EU investors should look at IBKR, DEGIRO, Trade Republic, Trading 212, or Lightyear — all of which provide access to UCITS ETFs across Europe with varying fee structures and automation tools.
QuantRoutine provides educational content only. Nothing on this page is an offer, solicitation, or recommendation to buy or sell any security or to open an account with any specific broker. Investments can lose value, and past performance does not guarantee future results. You are responsible for your own investment, tax, and legal decisions. Always review each broker’s current terms, fees, and eligibility on their official website before opening or funding an account.