Best EV Stocks that Pay Dividends

With the steady growth of Electric Vehicles (EVs) in the automobile industry, early investors may start reaping higher benefits sooner than later. However, the general trend among technology companies is that they don’t normally pay dividends (Eg. Tesla). So, finding the best EV stocks that pay dividends can be an uphill climb.

Fortunately, we’ve rounded up the best picks based on in-depth research and expert advice. So, you don’t have to go through the gruelling process of researching and identifying these companies.

But before we really get into the details of which EV stocks to choose, let’s get an understanding of the basics first.

What are EV stocks?

 

EV stocks are the stocks of those companies that design, create, develop, and produce electric vehicles, including their associated components. So, EV

 stocks do not only cover manufacturers of electric cars. They may include developers of batteries, battery chargers, charging stations, and related

 smart-car technologies.

EV stocks were among the best-performing stocks in the world for the past year. So, it makes sense to invest in it right now. So, it makes sense to invest in this new market because the prospects look bright.

Also, with the world gradually making the shift to green and renewable fuel, the EV market and stocks are bound to see growth in the coming years. So, investing in reliable EV stocks that pay dividends can be a wise move right now.

Do all EV stocks pay dividends?

No. Most EV stocks do not offer regular dividends to their shareholders. In fact, technology companies are notorious for not paying out dividends. The main reason is that these companies have to reinvest their earnings into the company.

If you know anything about EV markets, you know that industry giants like Tesla seem to be enjoying all the limelight. If you consider how Tesla has grown over the last 5-6 years, they seem to be breaking records in terms of growth. But most of their total revenue goes back into operations costs and capital expenditure. So, you could say that their operating profit isn’t really enough to pay dividends.

Another example of an EV giant not paying dividends is NIO Limited. While other players in the automobile industry suffered during the pandemic, this Chinese EV manufacturer experienced incredible growth.

With a market cap of over $70 Billion, it’s in the company of tech giants who pay dividends. But NIO still refrains from starting a dividend payout. Like Tesla, they also redirect most of their total earnings to R&D, administrative expenses, and further development.

Top Picks for EV stocks that pay dividends

So, we know what EV stocks are and why some of the biggest EV brands do not pay dividends. Today, we’re interested in bringing out the EV stocks that do pay dividends.

Remember that these companies are all associated with products services that go into the EV industry. And the list is not in any particular order. Those aside, let’s look at some of the best dividend-paying EV stocks to invest in right now.

Aptiv PLC

April is a renowned global tech company that focuses on sustainable technology in a wide range of niches. But their recent success has been in the automobile industry. The company excels in creating electronic systems and automated features in EVs based on green solutions and clean energy.

The Nasdaq Real-Time Price reveals that Aptiv stock price is hovering around the $140 mark at the moment. That makes it an affordable but valuable price for a growing EV stock.

Aptiv’s dividend yield has averaged around 1% steadily for several quarters now. The yield percentage isn’t very high. But the steady flow of dividends makes it a worthwhile investment in the long run. For most quarters of 2020, the dividend yield constantly stayed at $0.22.

Aptiv’s market cap is just short of $40 billion ($39.09 billion) right now. It’s a marked increase from the small beginnings that the company had in its initial years.

The company’s turnover suffered a little during mid-2020 because of the pandemic. But by Dec 2020, Aptiv’s total revenue already crossed $4.2 billion. As 2021 progresses, it looks like their total revenue will keep growing.

Aptiv’s current value is higher than 93% of the stocks in the US. So, it has an enviable position in the market as far as its worth is concerned.

BYD Company Ltd.

BYD is another EV stock that’s worth exploring, given the current scenario. BYD Co boasts of being a fast-growing, high-tech company. In the course of over 25 years, BYD has secured 30 industrial parks in a variety of locations around the world.

BYD deals with a wide range of new energy solutions and innovations. With the aim of creating a zero-emissions economy, BYD creates batteries, commercial vehicles, transits, and passenger cars that all run on renewable energy. And their EVs are among their most successful products. So, it’s a good example of stable EV stocks that pay dividends.

Their stocks currently range about $160 HKD (About $20 USD). Their dividend yield is projected to be about 0.11% for the first quarter of 2021.

The first number you notice here is the comparatively low yield percentage. But with BYD, it’s the steady flow of dividends that accumulates, not a one-time jackpot earning.

With a market cap of over $432 billion and a turnover of more than $180 billion, BYD is here to stay. So, although the yield percentage doesn’t seem all that high, it still looks like a good investment.

General Motors

When we talk of EV stocks that pay dividends, General Motors usually isn’t the first choice. That’s because it’s normally known as a fuel-based auto-maker. However, General Motors has ramped up its EV program by envisioning over 30 new EV models by 2025. Although GM was generally known as a conventional auto-maker, their new EV plan puts them in the center of the sustainable market.

They plan to design, develop, and engineer EVs for different price points and a variety of styles. So, it’s a comprehensive program that covers software, batteries, manufacturing, and vehicle integration.

As a legacy automaker, General Motors has consistently delivered 3-5% dividend yields throughout 2016 – 2020. The stock price has decreased to about $57 since the pandemic hit. That’s why their dividend payments were temporarily suspended for some time. But with the positive outlook of their EV sector, you can expect them to resume again soon.

Despite pandemic woes, GM still enjoys a respectable market cap of $82 billion. And with a total turnover of over $137 billion, they’re still a top contender. Throughout 2019-20, their operating income ranged around the $5 billion mark. So, their position in the market is also still stable.

With their wide range of EV designs coming up, GM is definitely one of the EV stocks to look out for. However, you’ll have to wait till they decide to start paying dividends again. And given the current state of Covid-19 trends, we’re not sure when this may take place.

BorgWarner Inc

BorgWarner is an international supplier of auto parts that has its headquarters in Michigan. With a presence in over two dozen countries, BorgWarner is listed as one of the top 25 suppliers of auto parts in the world. So, its foray into the EV industry comes as no surprise.

BorgWarner manufactures a wide variety of components that go into making electric vehicles. Their portfolio includes motors, transmission, electronics, power management, etc. So, they may not manufacture entire electronic cars, but they supply most of the components. The advantage with suppliers like BorgWarner is that their business will continue even when EV brands come and go.

Their dividend yield hovers around 1.40%, which appears low at first. But their market cap has grown to almost $12 billion over the years. BorgWarner’s stocks currently cost about $49.26 in the market. That figure makes it one of the most affordable EV stocks that pay dividends.

Their gross profit for 2020 came to around $1.9 billion, which is about 18% of their total net worth.

As a Fortune 500 company, BorgWarner continues to climb the ranks of EV stocks. While most tech companies flake out on rewarding their shareholders with dividends, BorgWarner continues to deliver the goods. Given their healthy track record and enviable position in the market, BorgWarner is another EV stock that may be worth buying in the future.

Volkswagen

Volkswagen, the maker of the iconic and classic Beetle, is also diving into the EV market. Their first electric SUV will hit Chinese markets by 2022. By 2023, they’ll roll out the ID 5 SUV-Coupe, and a much-awaited MPV will join in by 2024. So, it’s surely going to be a busy few years ahead for this German auto giant.

The good news here is that it’s an ideal opportunity for investing in their EV stocks. Their stock price recently closed in at $264, which is higher than some of the biggest names in the automobile industry. As their conventional cars already command this prestige in the market, their EV products may also follow suit.

By 2020 end, Volkwagen was already paying 1.82% as dividend yield to its holders. Their market cap stands at a whopping $124 billion. These numbers put Volkswagen among the best EV stocks that pay dividends.

Volkswagen’s total revenue crossed the $250 billion mark in recent years. The company revealed that the profits stood at about $14 billion after taxes. Also, till 2019, the company enjoyed the distinction of being the biggest car manufacturer when they overtook Toyota. If their EV products can replicate this success, their EV stocks will surely be worth the investment.

Nissan

The Japanese automaker, Nissan, is not a new name in the EV industry. Their first electric vehicle, Tama, was released all the way back in 1947. By 1997, they released the Prairie Joy EV, the first EV in the world to be powered by lithium-ion batteries. By 2019, their all-electric Nissan Leaf became the highest-selling electric car (later replaced by Tesla’s Model 3).

Nissan’s stock price recently closed at $10.03, making it an affordable option for those who want to invest in EV stocks. The brand enjoys a market cap of almost $20 billion.

The company’s consolidated net revenue for 2020 was about $20 billion. Out of this, the company recorded about $24 million in terms of operating profit. So, as far as turnover goes, Nissan is doing pretty well by today’s standards.

Nissan’s dividend yield under industry is about 3.28%, with a payout ratio of about 17.38%. Those are pretty impressive numbers given the competition it faces from other big EV players. Although their yield is not as high as it was back in 2017-18, it’s still one of the higher percentages if you consider the competitors.

With the 2021 Nissan Ariya already in the market, their EV prospects look brighter than ever. Investing in EV stocks can involve a lot of risks. But those risks are lowered with a reliable and time-tested brand like Nissan.

NextEra Energy Resources

We can’t talk of electric vehicles without considering power suppliers. NextEra Energy Resources is currently among the top generators of electric power in the region. It’s one of the world’s biggest providers of battery storage from renewable energy sources.

Apart from their other great numbers, NextEra truly stands out because of its impressive dividend yield of 3.31%. That amounts to about $2.48 on every yield. NextEra has provided its shareholders with a consistent increase in dividends for over six years now. In the last three years alone, NextEra’s dividend growth surged by over 51%.

NextEra’s market cap is currently at $150 billion, with an individual share worth about $76 in the last closing. The company records its net income as $1.67 billion in the last year. This figure is more than double its profits from the previous year when it netted about $421 million. So, there’s no doubt that NextEra can be among the best EV stocks that pay dividends.

The future of tech and automobiles will invariably make a move towards clean energy. The shift has already started. And companies like NextEra Energy Partners are at the helm of this transition.

Regardless of who manufactures the EVs, these energy solutions will always be required. Given these bright prospects, NextEra’s position in the market is almost cemented. So, investors who get a piece of this growing company may stand to reap great benefits later on.

Conclusion

Investing in EV stocks that pay dividends can be tricky. There’s always some risk involved, and no single stock is a guarantee for every season. However, with the right insights and market research, your investments can stand a much better chance.

Today, we’ve covered all the relevant information and upcoming stocks so that your decision is easier and more fruitful.

Best Pharmaceutical Stocks that Pay Dividends

 

If the past year (2020) has taught us anything, it’s that the world constantly needs reliable and efficient vaccines and medication. Whether it’s the Covid-19 pandemic or existing illnesses that plague human life, everyone wants access to the right treatment. So, pharma companies that develop and administer these treatments need to keep growing. As a practical investor, your attention is probably on pharmaceutical stocks that pay dividends.

Today, we’ll take you through valuable insights on some of the best pharmaceutical stocks that pay dividends. But before we really dive into the list, let’s understand some of the basics first.

What are Pharmaceutical stocks that pay dividends?

Pharmaceutical stocks that pay dividends are those companies who offer a regular payout to its shareholders from the profit it earns.

Having a dividend policy usually implies that the company is confident in the growth of its earnings. So, pharmaceuticals who have a proven track record in regular dividends are usually the ones that are doing well in the industry.

However, you should not finalize your investments merely on dividend yields alone. There are other considerations you have to make.

Fortunately for you, we’ve made all the comparisons and research on the best alternatives for 2021 and beyond. Today, we’re happy to share with you this list of the most prospective, dividend-paying pharma stocks. Let’s get into it!

Top Picks for Pharmaceuticals that pay dividends

GlaxoSmithKline (GSK)

GlaxoSmithKline, or GSK, is one of the leading companies that deal with healthcare. Their global businesses come under three categories – pharmaceuticals, vaccines, and consumer health products. By revenue alone, GSK is the largest company in the world that deals with vaccines. That itself is reason enough for many investors to grab stocks from GSK. But let’s look at the company and its figures in a bit more detail.

The last closing for GSK stocks was at $37.69. With over 2.5 billion outstanding shares and a market cap of $92.6 billion, GSK is definitely among the top players. But for those seeking dividends, GSK’s dividend yield of 5.3% takes the cake. It’s high enough to bring in sizeable profits without the risk of excessively high yields.

GSK recorded over $44 billion in sales during its report for the financial year 2020. Almost half of these sales were in pharmaceuticals. And the other half was split between vaccines and consumer healthcare. Out of this, their total operating profit measured over $8 billion. That explains how their dividend yields stay consistently high.

GSK is already in collaboration with major partners in developing a Covid-19 vaccine. Once that’s ready, the vaccine share in sales will surely go up. So, you can expect GSK to bag a bigger turnover for 2021 and more net profits.

Their adjuvant technology (enhanced immunity) promises to take the vaccine race to the next level. If successful, GSK’s position in the market is going to grow even more. So, it’s definitely a contender if you’re looking for reliable pharmaceutical companies that pay dividends.

Pfizer

If you’re even vaguely aware of the Covid-19 vaccine development, then Pfizer is not a new name for you. The company rose to prominence thanks to its Covid-19 vaccine that was among the first to roll out. And the vaccine’s application is not just in the US. Made with German biotech company, BioNTech, Pfizer’s vaccine is being administered to people from all over the world today.

However, it’s not the only vaccine or medication that’s netting profits for Pfizer. The company earned about $5.8 billion in revenue thanks to a range of vaccines and medications that aid in treating pneumonia, cancer, arthritis, and even prevent strokes. It’s probably from this kind of profit that Pfizer is able to maintain a dividend yield of almost 4%.

The last closing for Pfizer stocks was tagged at $38.83. Pfizer’s market cap of $222 billion is also set to grow more if the current trends continue. At 4.04%, their dividend yield amounts to about $1.56, which is higher than most other similar companies.

Pfizer believes that its Covid-19 vaccine has an efficacy rate of 95%. It was one of the first vaccines to be fast-tracked for approval in both the UK and the US. Today, it’s being administered all over the world (except China). Given these trends, we can surely consider it among the top pharmaceutical companies that pay dividends.

AstraZeneca

AstraZeneca is a Swedish-British Biotechnology company that deals with pharmaceuticals. In the past, the company was known for its products that deal with cardiovascular, oncology, infection, respiratory, and neuroscience. But today, it’s probably best known for its contribution in developing the Oxford-AstraZeneca Covid-19 vaccine.

The company has consistently shelled out dividend amounts of $2.80 for the past five years or so. So, you can expect past investors to be pretty satisfied with how the company is developing.

The dividend yield percentage looks like it’s decreasing. With a yield percentage of 4.50% in 2016, it was 2.70% for 2020. But this decrease in percentage is because of its increase in worth and revenue. AstraZeneca’s market cap has grown to a formidable $142.94 billion.

Since 2012, AstraZeneca has enjoyed over $25 billion in total revenue every year. So, it’s regularly featured as one of the top 15 pharma companies across the world. Their 2020 revenue alone was $26 billion. For 2021, their vaccine sales alone have netted them about $375 million in sales so far.

With the pandemic still continuing to lay hold on the world, vaccine suppliers like AstraZeneca will only grow from here. With further R&D, they stand likely to be the most prominent pharmaceutical stock that pays dividends.

Johnson and Johnson

Johnson and Johnson is widely regarded as the largest healthcare company in the world. They’re also believed to possess the widest range of health products for people of all ages. As a pharmaceutical brand, their position in the market is one of experience and great rapport.

J and J’s stocks closed at around $165.2. But this stock price is even more spectacular if you consider their market cap, which stands at $434 billion. Thanks to these numbers, J and J continue to be among the most sought-after pharmaceutical stocks that pay dividends.

In 2020, the company earned revenues of over $86 billion in sales. This revenue was distributed over health products, pharmaceutical segments, and medical devices. This number is an increase of about 0.6% from their 2019 figures. Their revenues will only grow in 2021, thanks to the Johnson and Johnson Covid-19 vaccine. It’s the first one-shot vaccine that was developed and is being widely used today.

The company has an order of 500 million doses today. At the standard $10 per vaccine, it stands to earn $5 billion in a single year from this vaccine alone. So, its position in the market is also stable and looks good for the future.

J and J also have the distinction of paying one of the highest dividend yields in the industry. Their yields stand at 2.48%, which amounts to about $4.24 on a yearly basis.

So, all things taken into account, J and J is surely one of the go-to stocks as far as pharmaceuticals go.

AbbVie

AbbVie is widely known among pharma investors as one of the best dividend-paying stocks. Although this biopharmaceutical company is still young, its parent company, Abbott Labs, has been around since the late 1800s.

Given this long history, AbbVie enjoys the reputation of delivering dividend increases for the last 49 consecutive years. Their current dividend yield stands at about 4.66%, which translates to about $5.2 annually. That’s easily one of the highest paying dividends among pharmaceutical stocks.

AbbVie’s stocks closed at $114.68, and it has consistently maintained this figure for the longest time now. Their market cap rests at $202 billion right now, which is an imposing figure by any standards.

AbbVie’s turnovers have been gradually increasing. For instance, their total revenue was about $28 million in 2017. The company experienced mild growths in 2018-19, taking the revenue figure to $33 million. However, this growth saw a sharp increase in 2020 when it rose to over $45 million.

AS far as market prospects go, AbbVie is here to stay. It may not have a Covid-19 vaccine just yet. But it sure has a series of medicines and treatments that will ensure its growth for years to come.

Sanofi

Sanofi is another pharmaceutical company that gives its investors reliable and regular payouts. Based in France, this multinational pharma company does R&D, development, marketing, and administering of a wide range of drugs and medication. Although its Covid-19 vaccine hasn’t taken off as well as the other names on this list, Sanofi’s other therapeutical products promise to keep it going.

Sanofi is a unique addition to this list because it’s not your conventionally impressive company.

It has a modest market cap of $129 billion, and stock prices currently sit at about $50.89. However, what makes it stand out is the alluring 3.75% yield in dividends. Ever since 2007, Sanofi’s dividend yields have seen a gradual but clear increase till today.

The French company has also seen steady growth in revenue since 2006. From a humble $31 billion revenue, it has now reached over $43 billion in 2020. This steady growth is one of the top reasons why it can shell out dividends over 3% regularly.

More than 89% of its stocks are publicly traded. That makes Sanafi an excellent choice for low-risk investors. Of course, there are no 100% guarantees when it comes to stocks of any kind. But Sanofi manages to come pretty close to being a reliable source of dividends.

The first quarter of 2021 saw Sanofi grow by an additional 2.4%. With a growing client base in both Europe and the US, Sanofi will see more revenue in the coming years. Given this healthy trajectory, you can expect more good things in the future if you already own stocks at Sanofi.

Amgen

Amgen is the last entry in our list of top pharmaceutical stocks that pay dividends. If the dividend yield percentage is anything to go by, Amgen is surely up there with the best. If you’ve heard of the arthritis medicine Enbrel, you have Amgen to thank for it.

With a yield of 2.67%, you’re assured of a steady income flow when you own a share in this company.

Amgen boasts of a wide range of medical applications in its products. These areas range from chemotherapy and cholesterol to neuroscience and bone health. This diversity of applications is a reason why the company manages to churn out great numbers every year.

The company’s revenues have grown to twice the size since 2004. Their sales numbers for 2020 alone stand at $25.4 billion. That’s also an increase from the $23 billion they sold in 2019. This growing trend is already taking their numbers higher in 2021. Amgen doesn’t have the market presence of giants like J and J or AstraZeneca. But their loyal payouts for shareholders make them a worthy addition to this list.

Amgen’s market cap is currently at $140 billion, and the stock last closed at $245. These numbers are good enough to help them maintain a growth trajectory for the near future. Amgen does not have a dedicated Covid-19 vaccine. But they’re very actively contributing immunology and antibody expertise in vaccine research. So, their continued participation in the industry is well on the way.

Conclusion

Pharmaceutical stocks that pay dividends are all the rage since the vaccine race started in 2020. However, each company brings something different to the table. As a wise investor, you need to make distinctions that allow you to choose what’s best for your financial plan.

This comprehensive list is intended to inform and assist you in making that choice. Although it’s not an exhaustive or guaranteed list, it will go a long way in helping you differentiate the best ones from the mediocre options.

Games Workshop – Investing in a hobby

When it comes to investing hard-earned cash into shares with a long-term viewpoint, I prefer to invest in a company I have some interest in. If it’s an interesting Tech company like Tesla or an everyday brand I’m familiar with like Coca Cola, I can take the dips without worrying too much as I believe in the long term.

For me the games workshop group plc (LON: GAW) is one of these companies but not just because I’m a massive nerd! I also think it has all the fundamentals to be a great company for many years to come.
Games workshop at its core creates miniature plastic figurines which customers use to create armies or small units to do battle within a tabletop setting. A key point to mention is, not only do they own the intellectual property behind the universe it’s set in they also makes there own products at its manufacturing base in Nottingham which they sell in there own stores around the world, leading to an impressive 75% gross margin, up 6 percentage points from last year.

The Fantasy world they’ve created throughout the years has to lead to a huge inflow of royalty income from licensing out its intellectual properties to game developers. the games themselves help reinforce the brand and attract new and old players alike back into the Games Workshop fanbase while providing what is essentially pure profit for the company.

keys to success in 2020

–Returning players with new attractive boxsets

Scores of returning players have been enticed back into the world of plastic mini-figure addiction. Their latest products have been heavily featuring figures that would have been around 20 years ago re-igniting passions from childhood.

–Covid has caused an increase in home-based hobbies

with half the world in some sort of lockdown or social distancing, outside of the home activities are at a minimal. Luckily for GW, a big part of there product can be done in solitude(making and painting their miniature figures)
-New update to there core product 40k with revisions and updates to existing armies
spiking demand and interest

–Engaging with the customer base

Kevin D. Rountree took the reins of GW back in 2016 he got to work engaging with the customer base and doing market research. This sounds obvious enough but previously GW had very little community engagement and 0 market research.

–Covid

A surprising fact about GW is that a relatively small portion of the customer base plays the game with the vast majority of customers being collectors/painter-hobbyists which is fine for those quarantined/in lockdown around the world.

–Publishing rights to produce figures

GW have the rights to produce figures for many notable franchises such as Judge Dredd, Doctor Who and Lord of the rings.

What the future of Games Workshop

– Expansion of there video game collection

The Warhammer branded Total War game has become one of the best selling franchises out of all the total war games. There are several games workshop licensed games currently in development which could lead to massive royalties as well as converting some of the video game fan base into hobbyists.
-Rapidly releasing much-needed updates to there core products
massive overhauls to the existing line up can re-ignite demand for certain figures, However, the rate at which they’ve been able to make the changes implies the infrastructure is there to be reactive and adaptive to the customer base.

–Social media growth

Social media for big business has been a focal point in many years, GW products lend themselves to social media content surprisingly well. GW own social media channels on twitch and youtube have been a great way to interact with the community providing teasers for upcoming projects as well as showcasing work from within the community. There has also been a steady rise in prominent YouTubers creating content related to GW, from Painting and crafting to actual live battles.

–Huge influx of new and returning players

The current schedule of releases has a focus on keeping current and returning players happys there’s also the new beginner-friendly starter sets.

 

-Games Workshop Dividend Yield

With 2020 over Games workshop group plc (ticker symbol LON: GAW) stock rose 54% over the year an impressive number, what’s even more impressive is if we travel back Five years ago, the share price stood near 540p. Today, the stock changes hands near 10,825p. 1823.15%

With a Dividend yield of 1.64%  (dividend cover is also 1.51)and a market cap of £3.7 Billion, it’s hard not to like the financials especially with its pre-tax profits growing £8.1 million a year (£89.4 million 2020) However its P/E ratio of 51.67 is relatively high mean its current price is not exactly value for money while the earnings per share are 218.70p.

 

I believe in the long term success of GW, Whilst I don’t think we’re going to continue seeing the percentage gains we have done over the last five years I think it’s still a relatively safe bet. Key factors Such as lack of any real competition, Having ownership over all levels of the business and finally the intellectual property which they’ve developed over the past 30+ years

Best Broker for Dividend Investing In the UK

 

In this unpredictable society that we live in, losing money and diverting yourself from your financial goals is quite possible. But there is always one thing that can save you from all your losses and redirect you towards your investment plans. The strategy in discussion is dividend investment. This investment method gives the shareholder the option of investing in the company stocks rather than using a cash pay-out option. 

The Basics of Dividend Investment

A dividend is a form of cash reward that you, as a shareholder, receive from a fund or your company on a per-share basis. When you receive your dividend,

 you have the choice to pocket the cash or reinvest those dividends to buy more shares in that particular fund or company. This is called dividend reinvestment. 

What Is Dividend Reinvestment?

If you plan to reinvest dividends rather than using them as cash, you end up buying more shares. Dividend reinvestment is an excellent strategy, and there are many reasons to prove this statement. A dividend reinvestment strategy is:

Inexpensive: The procedure of reinvestment is automatic. When you reinvest, you do not pay any additional commission or brokerage fee.

Easy: Dividend reinvestment is a very easy and straightforward process.

Flexible: With dividend reinvestment, you can also buy fractional shares.

The Role of Brokers in Dividend Investment

A broker is a firm or a person who acts as an intermediary between the investor and the company. Companies pay dividends to shareholders through a broker’s account. In this article, we have analysed three top brokers for dividend investing. With their pros and cons summarised below, let’s see which brokerage firm is the best platform for dividend investing in the UK, but before that, let’s see who can open an account with a broker company and its pros and cons.

Who Can Open an Account with a Broker?

If you open a brokerage account, you are free to handle your investments. Anyone with a smartphone and an initial amount to deposit can open an account with a broker. The trades, through a brokerage account, are convenient to make. Investment in stocks is a tricky business and requires lots of knowledge. When you open an account with a broker, you do not need a manager or a third-party to guide you. These accounts are self-directed, and you are guided by your broker accordingly. Below are a few pros and cons of opening an account for dividend investing with a broker company or an individual.

Pros

• Brokerage accounts are low-cost options. They cut the middlemen that take most of the money as commission. If you get yourself registered with these accounts, the commission stays in your pocket.

• With a brokerage account, you can invest in whichever company you feel like.
• Many brokerage accounts have a feature that allows them to download in your final account. This integration saves all the brokerage account information in your financial records.

Cons

• As a new investor, you might find it hard to understand the investment market even through a brokerage account. This slow learning curve usually ends up in costly investments.
• You cannot avoid your brokerage account. It requires attention daily. You need to stay updated on the market and any news on share investments. Also, you must be aware of how to react to a changing market.
• If you own a brokerage account, you must be able to analyse all the reports brokers provide. If you can’t do that, your brokerage account will be of no use to you.

Three Best Brokers for Dividend Investing

1. Hargreaves Lansdown

 If you are someone with a big investment idea, you would want a big enough broker to buy you shares, ETF, and funds. For new investors, finding a reliable broker can be intimidating. For investors based in the UK, choosing a broker that isn’t a market leader can be tough. So for that, Hargreaves Lansdown is a choice that won’t go wrong. Hargreaves Lansdown was founded in the year 1981 and has over one million clients. For some people, big brokers are safe and more financially equipped. The government does provide all brokers with some protection. But even then, if your broker does go down, it can be a source of headache and stress for you. 

If Hargreaves Lansdown goes out of business, the investors are compensated by the Financial Services Compensation Scheme, which covers an amount as big as £85,000 for every person on every platform. You can claim your compensation online.  

Hargreaves Lansdown is one of the biggest brokers worldwide, which means that they have margins on a huge scale. It is a publicly listed broker firm, which means you can keep a close eye on its accounts and activities as an investor. 

How Do You Make an Account with Hargreaves Lansdown?

Making an account with Hargreaves Lansdown is very easy. To start, you need to have your national insurance number, your debit card details, your bank details, and other identifications, if required. You start with choosing a suitable account category. Once made, you log in to your account.

Once you start investing in stocks, you can then move to the “Cash” tab and press on the “Income account” tab. You then go to your right-hand menu and choose the option of “amend your income instructions.” You end this process with a reinvestment value. After this process, all your dividends are automatically reinvested between the 11^th and 21^st of every month.

Features

Investment Programs and Pension Options

Hargreaves Lansdown offers investment programs such as SIPPs, ISAs, Junior ISAs, junior SIPPs, and investment accounts. Hargreaves Lansdown also deals with many pension options such as annuities or an income drawdown plan. 

The investment program at Hargreaves Lansdown is called Vantage. This platform is designed for investors to analyse and choose different investment options. The investment products you can deal with are shares, bonds, ETFs, currency services, and funds trusts. 

Website

Hargreaves Lansdown has a website of its own that is easily accessible and offers lots of services and benefits. This website has a wide analysis of companies, reports, financial news, forecasts, and mobile offering services. This website is equipped to offer dividend information, tax certificates, and investments. 

Customer Support

The customer support at Hargreaves Lansdown is extensive. You can easily contact the support through email and phone. 

Pros

• At Hargreaves Lansdown, there is a very low non-trading fee. 
• There is no withdrawal fee 
• At sign up, you get the free stock at Hargreaves Lansdown 

Cons

• At Hargreaves Lansdown, the stock and ETF fees are higher than most other brokers. 

Conclusion

Despite being an expensive broker, Hargreaves Lansdown offers a wide variety of services. It is safe and a comfortable broker because of its size and financial stability. Hargreaves Lansdown’s website is very easy to navigate and has a range of investment options for clients. We think Hargreaves Lansdown is a good broker to hold your dividend investments in. 

 

2. Trading 212

Tradeing212 was initially a company based in Bulgaria and was named Avus Capital. In 2013, it was incorporated in the UK and was started to be known as Trade212. Since it’s incorporated in the UK now, Trading 212 is regulated by both the Financial Services Commission in Bulgaria and FCA in the UK.

Since its incorporation, Trading 212 has shown rapid growth in its product portfolio. It also has a well-developed trading app that has been downloaded over ten million times since its inception. Trade 212’s app is one of the most downloaded apps around the world.  

Trade212 is a brokerage company that makes its mark with low trading fees and competitive services to provide its clients with immense safety and comfort. It isn’t wrong to say that Trade212 is, slowly and steadily, taking over the investment world. Trade212 doesn’t charge any commission fees on trades. There is also no set limit on how many trades can be allocated at a time. Unlike many brokers, the accounts at Trading 212 are executed quickly, without any follow-ups. For dividend investment Trade212, is an easy broker firm to deal with. 

At Trading 212, you can purchase shares of the Vanguard funds that you have invested in already. Trading 212 also pays dividends. The cash you will receive from a dividend will appear in your free fund’s section in your portfolio. When Trading212 pays you a dividend, you will receive a notification with all the details mentioned. The details show how much dividend you have per share and the number of shares you owned at the recorded dividend date time.

How to Start an Account with Trade212?

Opening an account with Trading212 is very simple and user-friendly. It is an online process. You start with choosing the right brokerage account for yourself. Once selected, you put your details. You will be required to answer some legal questions to ensure that you are legally allowed to trade.

You then fill in your basic identification details such as a passport picture and then seal the deal through a virtual contract. Once signed, your account gets confirmed, and you are free to trade.

Features

Leverage

The leverage offered at Trading 212 is around 1:3 for all professional accounts. This leverage rate is higher than what many other brokers offer. Leverage is good as it increases the risk of profits, but at the same time, it also increases the risk of losses incurred. Traders are always advised to use leverages wisely. 

Mobile App

Trade 212 has a user-friendly mobile app. It is available for both iOS and Android users. This app has features that provide complete functionality. The app has a feature that allows trade to happen through visualisations only. The navigation is simple and clear, and the data visualisations are well-thought-out. The download is this app is super quick and convenient. This app is the main product of Trade 212, so it has been designed keeping in mind the needs of traders. 

The Trade 212 app is one of the most downloaded apps, and millions of transactions are processed on the app every day. Trade 212 is a company that is committed to providing security and comfort to its clients. The systems used are robust and secure. The app is well-regulated so that the users can feel confident about its security policies. 

Payment Methods

Trade 212 has a variety of payment options to offer. These options include bank transfers, debit and credit card transactions, and digital wallets. In short, all mainstream payment methods are available. 

Customer Support

The customer service at Trade 212 is very responsive. The average contact time is just 50 seconds, which is beyond quick. The customer service at Trade212 can be accessed 24/7. 

Pros 

• The real stock and ETFs at Trade212 are commission-free. 
• The opening of an account at Trade212 is very simple and easy. 
• At sign up, you will receive free stock. 

Cons 

• The product portfolio at Trade212 is very limited when compared to other brokerage firms in this industry.

Conclusion 

Trading212 is an online brokerage firm that provides its services to new and experienced investors. It has an excellent mobile app, a simple trading structure, educational features, and a great customer support service to make buying and selling shares a fun experience.  Can we call this broker company the future of trade? Yes, without a doubt!

3. Freetrade

Selling and buying shares is considered an extremely time-consuming and painful procedure. Just because of this, many people do not opt for buying or selling shares at all. At the London Stock Exchange, according to the official National Statistics, only 11.9% of shares at London Stock Exchange are owned by individuals. Companies own the rest. The worst part is that this percentage is falling every year. This percentage is far below the USA markets, where almost 40 per cent of individuals own shares. 

But thanks to Freetrade, the attitude of British people towards selling and buying shares has changed a lot. According to the Freetrade team, they want to invest in an easy way to earn money rather than a complication. 

 Freetrade was founded in 2016, and since then, it is considered one of the most popular fintech start-ups. This start-up provides a stock trading and dividend investment platform that is entirely free of commission. Freetrade is one of the safest mediums because FCA regulates it. 

Freetrade has an ideal app for investors who are always on the hunt for mobile-based services. This application is intuitive and fast and is available for both iOS and Android customers. It is very easy to set up a Freetrade account. You are asked for a few identification details such as name, address, and passport number.

With a Freetrade account, you do not have to pay a subscription fee, but you will need to fund it once your account is up and running. Freetrade has worked towards building investing plans that are far cheaper and accessible than what other brokers have to offer.  Compared to brokers like Hargreaves Lansdown, which charges £11.95 for a one-off investment, Freetrade takes zero investing fees and takes no commission to buy and sell shares. Exceptions are instant orders on which Freetrade charges a commission cost of no more than 1 pound.  The Freetrade model is similar to the Robin hood model in the USA. 

There are four kinds of accounts that you can open with Free Trade:

• General Investment Account – standard account for stock and ETF trading
• Investment Savings Account – a tax-efficient savings account
• Freetrade plus Account (New) – a tax-efficient solution with an expanded product portfolio and order types
• SIPP Account (waitlist) – flexible investments in pension savings

How Are Dividends Paid on Freetrade? 

Different companies pay dividends at different intervals. Most companies pay both a final dividend and an interim dividend. There is also a category of those companies that pay out their dividend at the end of every month. 

If you are someone who has shares with Freetrade, the Freetrade management acts as your nominee. This implies that you will be the owner of shares, but Freetrade will be listed as a shareholder on the company’s records. This will result in Freetrade receiving the dividend payment, which they will send to your Freetrade account. We will always try to pay out dividends on payment day or within one working day. But there are times when things that are least expected happen. The distribution of dividends by share registrars happens late. There are also times when they prefer sending a cheque as dividend money rather than cash. All these delays the time when you receive the dividend. 

How to Open an Account with Freetrade?

Opening an account with Freetrade is quite simple. It is also free. You start with choosing an appropriate account category. Add in your personal information. Identify yourself through your passport, and then seal the deal.

Features

Minimum Fund Requirement

No minimum deposit is required. Freetrade doesn’t have a policy of a minimum requirement. Even with £1 in your account, you can freely invest it in your Freetrade account. There are no minimum transaction hurdles with Freetrade. 

Fractional share trading

With a Freetrade account, you have the liberty to buy fractional shares of UK and USA stocks. You can also purchase ETFs using your Freetrade account. This option given by Freetrade allows you to buy a share partially, which otherwise can cost you a lot. 

Commission

Transactions through Freetrade do not require you to pay any commission. 

Sound regulation

Freetrade is regulated by FCA in the UK and is also a part of the London Stock Exchange. Being a member at LSE, Freetrade saves you from dealing with third-party brokers who usually charge a fee for their services. 

Dividends on Freetrade

Viewing your dividends on your Freetrade app is easy. Once the Freetrade team has deposited the dividend payment in your account, you will receive a notification. You will also receive an email to confirm the dividend payments and their details. The dividend is paid as cash in your account. You can either reinvest it or use it to buy something good. 

Customer support

With a Freetrade account, you can access the customer support feature through the chat icon in the Freetrade app. But this isn’t available all day. Unfortunately, Freetrade also does not have a helpline number or email address to communicate with the Freetrade team. 

Pros

• With a Freetrade account, you get free stock on sign up 
• There are no minimum deposit requirements. With a Freetrade account, you do not have to pay a withdrawal or account fee. 
• Freetrade is a mobile-based broker that suits everyone.

Cons 

• When buying overseas shares through Freetrade, you are incurred a 0.45% fee

Conclusion

Freetrade is an excellent broker with flexible policies, no minimum amount for a deposit, services with a commission fee, and a mobile app. It is very popular among the majority of users. It is very easy to open an account with Freetrade, thanks to their very accommodating customer service.

The Verdict

All three brokerage companies mentioned above have their pros and cons. Each one of them deals with investors in their ways. But when it comes to what a majority of people would prefer today, we can’t help but acknowledge the growth and product portfolio of Freetrade.

Freetrade is an investing platform that takes care of your investment issues quite smoothly. The Freetrade app is purpose-built and is extremely mobile-friendly. Making an account at Freetrade is free and without any commission.

With the ease, security, and comfort that today’s individuals would want, Freetrade offers that without any fee. When we compare this factor with Trading 212 and Hargreaves Lansdown, it becomes quite clear which brokerage company individuals and companies would prefer today. Nothing beats that! After analysing and comparing all the three brokers mentioned above, Freetrade has taken the lead for me and is the best platform for dividend investing in the UK.

for more information on Freetrade click the link – Freetrade Review

 

 

FreeTrade Review – The best Commission-free stock trading and investment app

Freetrade is an online trading service that started in the UK in 2016. It provides commission-free trading in stocks and is absolutely safe as it is regulated by the top tier regulator FCA. But should you choose this service over the others when others have been into business for so long? How does it compare with other services? Here is a detailed overview of Freetrade so you can have a better idea of why and when you should use it.

What is Freetrade?

Free trade was founded in 2016 by Dodds and Davide Fioranelli for the sole purpose of making stock trading easy and at the same time making ownership of stocks affordable. They used to work in KPMG, a corporate finance firm from which they gained experience.

There isn’t much going on with the service as of yet as you don’t get all those extra features like precise calculations and speculations as offered by other services like Trade212 and Lansdown. However, they are implementing more analytic data such as Dividend yields, market caps. P/E ratio.  But what this service is known for is its low-cost trading account. The USP is that it allows you to trade with real shares with no commissions or any kind of fees. This helps those people build a portfolio who find investing a large sum of money as a risk. Because you can start trading with only one pound, it is considered risk free.

You only need a Smartphone app to get started and the best thing is that you can even hold your shares in the ISA to keep yourself tax-free, Currently, they have a user base of 250000 and increasing.

How does it work?

In case you are using your own trading platform, it can be expensive. The traditional platforms like Landsdoen and II investor focus more on funds thereby increasing the cost of maintaining and trading stocks. But if you look at Freetrade, it is solely share based. It is extremely convenient to build a portfolio with just one pound of investment.

With free trade, you can invest by purchasing shares of companies in the UK as well as the US. It also has the option for exchange-traded funds. For a basic trading account, you only have to pay the basic stamp duty. If you want to hold your shares in the ISA, it will cost you three pounds a month. For depositing money, you can either set up a bank transfer or you can use your credit card to make direct payments.

It is recommended to use google pay as it will be instantly transferred. For bank transfer, you may have to wait for a while. For withdrawals, you can always transfer your funds to the same account you used with Freetrade and your funds will be transferred within 5 working days. If you urgently need to withdraw, you can pay an additional five-pound and withdraw instantly. Do remember that you will have to request before 5 pm and for solid investments, you will have to wait until the settlement of the case.

How to set up a Freetrade account

Opening an account with Freetrade is fairly simple. It has a detailed website that has all the information you are going to need to register your account. But you cannot register on their website. The only way to register is through your Smartphone. You can easily download the app from the Android play store or App store for apple. Registering your account and setting it up only takes minutes. This shows the developer’s intentions. This platform is only intended for those people who want to manage their money through their app. Just start by registering through your email and you will be sent a verification code to activate your account.

The next step would be to enter your personal details like your address, name, DOB, Insurance number, etc. You can link your bank account to transfer funds and also have the option to use Google pay or Apple pay. This app also allows you to search for ETDs and stocks and you can also see the variation in prices based on their weekly, daily or monthly report. When you invest your money, you can monitor your portfolio to see how it is performing and easily buy and sell stocks. The interface is simple and intuitive and can be deemed to be as user friendly. It is also very informative as it shows what the share price is and how much stock you receive based on your investment.

Freetrade features

• Freetrade offers commission-free trading which means it is easy to go from one to ten and ten to a hundred pounds in no time. Freetrade won’t charge you anything for shares. This is a DIY investment that returns to you fully.

• The best thing about free trade is that it allows you to start with just one pound with minimal risk.

• Allows you to invest in major companies like Google, Facebook, and other giants.

• You can have dividends and interests free of tax by holding your funds in the ISA. Even if you have a previously existing ISA account, you can still transfer that ISA money to your current account.

• The free share feature allows you to have shares in the company worth three to over three hundred pounds if you refer a friend on the Freetrade platform. This is a way to have more users for this platform and for retaining them. This also allows users more opportunities to go for high flying stocks.

• Some companies provide perks to their shareholders. You can expect to get some discounts on their product if you can earn a specific amount. This is a nice way to save.

• The basic account that you get with free trade is free and it allows you to sell or keep shares. If you want a service from which you can get tax free dividends, then Freetrade is the best choice.

• Comes with Free trade plus service. This is a subscription that allows you to have access to more high flying stocks. It also comes with additional beneficial features. For example, it has priority alerts and stop-loss features which prevents you from losing more money than you earn.

How does Freetrade make money?

One must ask if it is all for free, how does Freetrade itself make money. For sure it is not a charity. The basic service is free but they earn their part from their monthly fees from optional subscription such as:

• Freetrade ISA, £3/month

• Freetrade Plus, £9.99/month

• Fee of 0.45% of the Base FX rate on each US order placed  (The standard FX rate is 1.50%)

• Small amount of interest earned from banks on customers’ cash

As a rough comparison, other brokerages can charge a 1% annual management fee for an ISA account. 

Freetrade is current £36 a year 

A portfolio of £5000 with another brokerage could be £50 (this is only going to get more expensive as your portfolio grows eroding away your tax free gains)

Is Freetrade safe?

If you are worried about the safety of your money then stop. This service is regulated by one of the top tier regulators. There is no question of your money going anywhere except trade. The financial conduct authority makes sure that each customer is treated fairly. If you have complaints, you have the option to complain to the platform as well as the financial ombudsman service in case your issue is not resolved. It also acts as principal secured financing because your assets are protected up to the value of 85000 pounds by the financial compensation scheme in case the platform becomes insolvent. Other losses that occur through unsound decisions are not covered.

Pros

• The Freetrade platform is very easy to set up where you can very easily invest your money securely in the stock market within a matter of seconds because of the fast and simple process.

• The user interface is very user-friendly and the app is designed to be very simple.

  

• The app is very well organized and is arranged in easy to use five sections which include your insights, portfolio, information on stocks and ETFs, and where your money is going.

• Unlike other traditional stock trading, this does not cost you anything. Furthermore, it doesn’t have any commission, so you can increase your profits fast.

• A growing list of international stock options as well as IPO’s.

• It allows you to hold your shares in the ISA where you can be free of all taxes.

• It has a huge community where users can learn from the experiences of other traders.

Cons

• The biggest risk of trading with this platform is that it is easy to lose a lot of money without even knowing.

• There is not any kind of detailed information or warnings regarding stocks.

• Part of this has to do with the easy to use interface. It is very easy to buy and sell shares with this platform that it almost becomes like an addictive game.

• While the figures are decreasing, one doesn’t realize how much money he is losing.

• There is no trading limit to stop overspending like on most of the gambling websites.

• There is little to no research tools available for the user to analyze his place in the market and the condition of the stocks.

• There is nothing to tell neither you how the stocks are progressing nor any news page where you can have an update about the companies.

• It is all share-based and there are no funds. Funds can diversify shares but in Freetrade you are only limited to stocks.

• Freetrade only has companies enlisted in the UK and US which means that you are left out of all other companies from Europe.

Free trade is essentially ETF and stock trading. While it is easy to maintain and open an account and trading seems effortless, it doesn’t have any protection from over-trading neither it provides many tools to analyze the stocks. Furthermore, cards are available only for deposits and not withdrawals.

 

Freetrade vs Trading 212

Both services have a lot to offer. Both allow you to trade stocks for free without even having to pay any commission fees. Other companies like eToro are also following suit. Freetrade allows you to trade in stocks and ETFs while Trade212 allows you to trade in instruments. You can trade over 1800 of them. Instruments such as commodities like oil and gold, stocks, currencies, and cryptocurrencies are some things that you can expect to trade-in. In this manner, Trade 212 has a broader scope. Let us see how these two free trading services compare with each other.

Both the Freetrade and Trade212 are the same in terms of Stocks and shares, ISA, Fractional shares, and Ethical investing practices. Neither of the two services provides anything for Pension (SIPP) or Lifetime ISA (LISA). Both platforms have apps for Desktop, Android, and iOS platforms. Trade212 has a lot of Guides and other information on the available products while Freetrade provides nothing like that. It has limited research tools as well unlike Traded212 which allows you an in-depth analysis. Trade212 offers demo accounts and has a good number of videos and walkthroughs while Freetrade doesn’t have any of those.

Costs

While both of the platforms are absolutely free and they charge you almost nothing, there are but few differences between the two when it comes to actual costs. Trade212 does not charge anything except for the 0.5 per cent foreign exchange fee. There are also some incumbrances on the deposit amount and withdrawals as well.

Compared to this Freetrade also has some charges. For example, it charges 0.45 per cent for foreign exchange if you are buying shares from another country. There are also a couple of charges to use their stocks. As for withdrawal, there is no fee but if you want the same day withdrawal, you will have to pay as much as five pounds. These fees are still peanuts if compared to other trading platforms. On other platforms, you can easily incur charges as much as ten pounds that decreases your returns. This ensures a good deal of incurring a lot of profits without having to spend money.

Demo account

Freetrade does not offer Demo accounts. This means that you have to go straight into trading without practicing. Trading212 however, has Demo accounts and you can practice as much as you want before going into the real thing. Once you feel that you are ready to trade, you can try this for real. The good thing is that it lets you practice on a Demo account without having to register through an Email. But if you want to have an insight into your stocks then you will have to sign up for them.

Is Freetrade better than Trading 212?

Both services are amazing choices for free trading. Freetrade is simple to use and aims at new users. Trade212 has a lot of options and is a comparatively well-made platform for more advanced users. That is why it gives you a demo account to practice first. Neither of these two will give you a pre-made portfolio and you will have to make your own. If you want pre-made portfolios then these services might not be for you. We think that both Trading 212 and Freetrade have their own pros and cons making it suitable for a variety of users.

Freetrade vs Lansdown

• Interface

Both the platforms have an easy to use interface and allow for fast trading options.

• Stocks

They have free stocks and provide the option for ETF trading as well.

• App

Both platforms have mobile and desktop apps for easy usage.

• Learning tools

Both platforms have intuitive learning tools that educate the user of the trading principles and best practices.

• Customer service

Both platforms have great customer service who are always there to help you.

• Investor protection

Both the platforms offer a high level of investor protection

• Clients

The majority of the clients on both platforms are from the top tier authorities.

• Stock exchange listing

Lansdown is listed on the stock exchange while Freetrade isn’t.

• Negative balance protection

Freetrade does not have protection for the negative balance.

• Banking license

Neither of the platforms holds a banking license.

Freetrade offers almost no tools to properly research the stocks and has a very limited Portfolio. Furthermore, the Debit card can only be used for deposits and not for withdrawals. On the other hand, Lansdown has a high fee for ETFs and stocks and if you are outside of the UK, you have to open an offline account. Furthermore, if you want to trade in any other currency, you cannot do it with Lansdown.

Free trade ISA

When you are investing, there is always more risk of loss than profit. Couple that with tax laws and commission brokerage fees and you are left with pretty much nothing. Freetrade has a three-pound monthly fee for holding your share in the ISA. ISA rules have different tax rules and this can save you from taxes.

• Tax-efficient

With the ISA there is no income tax or capital gains on your investments and return therefore you are always tax-free

• Limit

You can deposit up to £20000 pounds per year for a three-pound monthly fee.

• Long-term investments

While holding your investments in the ISA, you can secure your dividends and capital gains by making them tax-free. This allows your wealth to increase much faster. Furthermore, your investments are secured for the long term.

Why should you open an ISA with Freetrade?

• Commission-free

When you open ISA with Freetrade, there are no commissions whatsoever for buying and selling the stocks. This essentially means that your investments can grow manifolds in no time.

• Allows instant trading

Freetrade allows unlimited instant trades for free during the stock market hours.

• Safe and secure

As Freetrade is one of the few services regulated by the top tier regulator FCA, your investments are secured and safe. Furthermore, you are also covered by the Financial Compensation Scheme as well.

• Low fees

Freetrade doesn’t have hidden charges or vague fee structures. It charges three pounds flat every month for holding your investments in the ISA. This way you can grow your investments without having to worry about the increased fees.

• High-quality stocks

Freetrade allows you to choose from several high-flying stocks like that of Google, Apple, and many others.

• Fractional shares

Here is something that separates this service from others. Even if you have to buy the most expensive share, you can have a chunk of it for yourself for as low as two pounds. This is very good if you are looking to make a more diverse portfolio for yourself.

• Support

Freetrade has amazing support with fast resolution times. They are there for you when you need them. For ISA they have extended support as well.

Bottom line

Freetrade is a comparatively new company in its initial stages. Established in 2016 it has grown massively and has a good track record as a broker. It even survived the financial crises and has sustained its existence. Freetrade is regulated by top tier regulators and is, therefore, a safe platform to trade on. Furthermore, the PEC also does an annual audit of the company that provides a high degree of investor protection.

Free trade allows trading in stocks and ETFs with a great fee structure. Starting with almost nothing you can build a considerably vibrant portfolio because you get to purchase a part of the most expensive stocks for just two pounds. The account opening is easy and pretty fast. The app is intuitive and easy to use while the whole thing is very user-friendly.

Although it has some drawbacks like the inability to go beyond the US and UK stocks and the limitation imposed on credit cards plus the severe lack of research tools. But it is a great choice for people if you want an easy-to-use trading system with instant trades and execution on a very low fee. If you are looking for tax-free investments and want to hold them in the ISA then Freetrade is a great choice indeed.