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In July 2025, the Financial Conduct Authority (FCA) reported a sharp rise in the number of people using zero-commission trading apps. Platforms like Trading 212, Freetrade and eToro have seen trades jump by over 40% in the past year. This points to a major change in how UK investors manage their money and interact with the stock market. While it offers new opportunities, it’s also raising concerns about risks, transparency, and long-term investment habits.
In This Guide
A New Wave of UK Investors
Trading shares used to be something most people did through banks or traditional platforms like Hargreaves Lansdown or AJ Bell. Today, easy-to-use apps have made investing more accessible. With no trading fees on UK and US shares, these apps have attracted thousands of new, often younger, users.
The FCA found that more than one in five UK adults under 35 now invest using zero-commission platforms. Many of them have smaller amounts to invest and were previously put off by high fees or account minimums.
The trend looks similar to what happened in the US with the rise of Robinhood, but in the UK it also involves key local factors like ISA access, FSCS protections and growing awareness of tax efficiency.
How These Platforms Make Money
Although trades are free, these companies still need to earn money. They do this in several ways.
The most common methods include foreign exchange fees, interest on customers’ unused cash, and optional paid features. Some international platforms also make money through “payment for order flow,” where firms pay for the right to handle trades. While this is banned in the UK, similar practices abroad can still affect how your trades are carried out.
In most cases, UK users pay hidden fees when buying US stocks. Every time pounds are converted to dollars, a fee of around 0.5% to 1% is added. Over time, these costs can reduce your overall returns.
ISA Access Matters
Not all commission-free platforms allow you to invest through a Stocks and Shares ISA – one of the best ways to grow your money tax-free in the UK.
Freetrade is one of the few low-cost apps offering ISA support. Others, such as eToro, don’t yet provide this option. For anyone planning to invest over the long term, having access to an ISA is a big advantage.
This is especially true now that the annual Capital Gains Tax (CGT) allowance has been cut to just £3,000 for the 2025–26 tax year. If you invest without an ISA and your gains go over this limit, you could end up paying tax on your profits.
Apps Fuel Risky Trades
While these platforms make investing easier, they can also encourage poor habits. Fast access, game-like features and constant notifications may lead users to make quick decisions rather than sticking to a plan.
Ben Hallam, an independent analyst based in Manchester, says the trend has two sides. “It’s great that more people are learning to invest,” he explains, “but we’re also seeing more risky behaviour, lots of trades, panic selling and following hype without proper research.”
The FCA’s report showed that many trades were triggered by trending topics on social media or news headlines, not by careful planning. This makes new investors more vulnerable during market downturns.
Traditional Platforms Rethink Their Strategy
The growth of free trading apps has forced long-standing brokers to respond. Some are cutting fees, launching new mobile tools or trying to appeal to younger users with simpler interfaces.
Even so, there is still a role for full-service platforms. People with bigger portfolios or more detailed investment needs may prefer features like in-depth research, automatic dividend reinvestment and personal support.
But change is coming. Hargreaves Lansdown has seen fewer younger users signing up and now plans to launch a more modern app later this year to stay competitive.
Choosing the Right Trading App Isn’t Just About Price
Zero-commission trading apps have opened the door for more people to take control of their finances. They offer low costs and easy access, which can be empowering. But that doesn’t mean they’re risk-free.
The true costs are often hidden, such as foreign exchange fees or the lack of ISA support. For long-term investors, these details matter just as much as choosing which shares to buy.
As the market evolves, the key will be balancing ease of use with smart, informed decisions. The best platforms will be those that help people build wealth steadily, not just chase quick wins.
For UK investors, this is an exciting time, but it also requires careful thinking. The best choice isn’t always the cheapest, but the one that fits your goals.
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