Freetrade strikes deal to offer direct access to German stocks giving investors the chance to snap up shares in big names like Adidas and BMW
- Freetrade has struck a deal to offer investors direct access to German stocks
- The deal will keep costs for users down as trades will not go via a third party
- It lays the groundwork for a further expansion into Europe
Freetrade users can now buy big ticket stocks like Adidas and BMW after striking a deal to offer investors direct access to the German stock exchange, laying the groundwork to further expand into Europe.
The launch of German stocks follows the arrival of Finnish stocks on the platform last month.
Users can also now buy and sell Dutch stocks, and will soon be able to buy Swedish, Portuguese and Austrian shares.
Investors can now buy shares in German stocks like BMW without incurring extra charges as Freetrade secures direct access
Rival platforms currently let customers buy and sell European stocks but do so through a third party system that charges a fee.
Freetrade will become the first zero commission retail platform in the UK to link directly to exchanges in Europe via CBOE and Equiduct, usually reserved for institutional investors, rather than using the CREST system.
‘Freetrade’s customers will enjoy cost-effective access to liquidity in thousands of stocks and ETFs, and their participation in our market will deepen and further diversify the liquidity available to all our participants,’ said Natan Tiefenbrun, head of equities at CBOE Europe.
The partnership means costs are kept low for users who can buy and sell most German stocks with no commission or charges, just foreign exchange fees.
‘The addition of European stocks to the platform is a key step for us as we begin our expansion into Europe and beyond,’ says founder and chief executive Adam Dodds.
‘Freetrade’s unique direct to market access and proprietary brokerage platform helps to unlock cost-savings that we can pass onto our customers through a simple and low-cost investment experience.
‘We will continue to add more European exchanges to the platform as we expand across Europe.’
Other big names listed in Germany include Daimler, Porsche, Siemens and Deutsche Telekom.
Access to other European markets mean investors will be able to access popular European stocks like Volvo in Sweden and Just Eat and Heineken in the Netherlands.
It is the first time the platform has offered its users access to European stocks. The platform, which lets its users trade for free, launched its app in 2018 with the aim of democratising investment but it has only offered UK and US stocks and ETFs until recently.
It has built a loyal following in large part because of its referral system which promises a free share worth up to £200, which has helped push customer numbers to over 1million and see it double its valuation from £270million to £650million in under a year.
Compare the best DIY investing platforms and stocks & shares Isa
Investing online is simple, cheap and can be done from your computer, tablet or phone at a time and place that suits you.
When it comes to choosing a DIY investing platform, stocks & shares Isa or a general investing account, the range of options might seem overwhelming.
Every provider has a slightly different offering, charging more or less for trading or holding shares and giving access to a different range of stocks, funds and investment trusts.
When weighing up the right one for you, it’s important to to look at the service that it offers, along with administration charges and dealing fees, plus any other extra costs.
To help you compare investment accounts, we’ve crunched the facts and pulled together a comprehensive guide to choosing the best and cheapest investing account for you.
We highlight the main players in the table below but would advise doing your own research and considering the points in our full guide linked here.
>> This is Money’s full guide to the best investing platforms and Isas
| Admin charge | Charges notes | Fund dealing | Standard share, trust, ETF dealing | Regular investing | Dividend reinvestment | ||
|---|---|---|---|---|---|---|---|
| AJ Bell YouInvest | 0.25% | Max £3.50 per month for shares, trusts, ETFs. | £1.50 | £9.95 | £1.50 | 1% (Min £1.50, max £9.95) | More details |
| Bestinvest | 0.40% | Free | £7.50 | n/a | n/a | More details | |
| Charles Stanley Direct | 0.35% | No platform fee on shares if a trade in that month and annual max of £240 | Free | £11.50 | n/a | n/a | More details |
| Fidelity | 0.35% on funds | £45 fee up to £7,500. Max £45 per year for shares, trusts, ETFs | Free | £10 | Free funds £1.50 shares, trusts ETFs | £1.50 | More details |
| Hargreaves Lansdown | 0.45% | Capped at £45 for shares, trusts, ETFs | Free | £11.95 | £1.50 | 1% (£1 min, £10 max) | More details |
| Interactive Investor | £119.88 as £9.99 per month | £7.99 per month back in trading credit | £7.99 | £7.99 | Free | £0.99 | More details |
| iWeb | £100 one-off | £5 | £5 | n/a | 2%, max £5 | More details | |
| Freetrade | Free for standard account £3 month for Isa | Freetrade Plus with more investments is £9.99/month inc. Isa fee | No funds | Free | n/a | n/a | More details |
| Vanguard | 0.15% | Only Vanguard funds |
Free | Free only Vanguard ETFs | Free | n/a | More details |
| (Source: ThisisMoney.co.uk July 2021. Admin charges quoted annually, may be monthly or quarterly) |
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