Freetrade to make Sipp and mutual funds free from January 2026, intensifying low-cost investing competition

Freetrade will make its self-invested personal pension (Sipp) and mutual funds free to hold on its platform from January 2026, the company said, as it presses ahead with a broader shift toward a fee-free service following its takeover by IG. The change underscores the platform’s ongoing effort to broaden its appeal to cost-conscious investors while expanding beyond stocks and shares ISAs.

The fee-free rollout will apply to both the Sipp and mutual funds. The Sipp is currently available only on Freetrade’s most expensive tier, which costs £11.99 a month, or £9.99 a month if paid annually. For investors who pay monthly, the switch to a fee-free Sipp will translate into a saving of nearly £144 a year once the pricing changes take effect on 22 January 2026. Freetrade will continue to offer paid tiers that unlock more advanced tools and priority customer support, but the basic accounts will carry no platform charges.

The timing aligns with the firm’s broader platform transformation, which has included a push into funds and a push to broaden the range of investments available to users. Earlier this year, Freetrade made stocks and shares ISAs free in a bid to attract more customers, and the new move to remove charges on SIPPs and funds expands the value proposition for savers looking to build diversified retirement portfolios within one app. Viktor Nebehaj, chief executive of Freetrade, said: "By making our Sipp free and unlocking mutual funds, our customers will keep more of their hard earned money. We're removing a key cost barrier that may hold back some from getting started in the first place."

Freetrade positions itself as a low-cost platform in a crowded market. The company has signaled that while all accounts will be free of platform charges, users will still pay the underlying costs of investments, as measured by the ongoing charges figure (OCF). In addition, subscribers may benefit from lower foreign-exchange charges and higher interest on uninvested cash, a package that could be appealing to cost-conscious investors who want to keep more of their returns.

The move comes as competition among online platforms intensifies. Prospects for a broader array of funds are evident, but rivals’ offerings vary. Prosper already provides a fee-free Sipp, but it focuses on funds rather than individual stocks, with around 200 funds available. Trading 212 does not offer a Sipp and emphasizes stocks and ETFs, while InvestEngine operates a Sipp but restricts its scope to ETFs. In a broader sense, traditional fund supermarkets such as Hargreaves Lansdown and Interactive Investor offer far larger fund universes—more than 3,000 funds—than Freetrade’s current catalog of around 450 funds, though Freetrade says more funds are on the way.

Freetrade’s gap with the largest fund platforms remains a factor for investors who require access to thousands of funds. Still, the platform’s strategy to remove account fees for both SIPPs and funds could make it more attractive to new entrants and those who want to consolidate retirement investing alongside other savings within a single app. The company notes that SIPPs can still be transferred from other providers, including major platforms such as Hargreaves Lansdown and Vanguard, though transfer processes and any transfer fees would be governed by the sending provider.

The 450-fund benchmark is a fraction of the more than 3,000 funds offered by the bigger platforms, and investors will need to assess whether Freetrade’s fund lineup covers their preferred managers and strategies. The breadth of mutual funds is also evolving, and Freetrade has signaled that more funds are on the roadmap as it expands its investment universe. This is Money, a market-reporting site that tracks platform changes, has highlighted Freetrade’s pricing improvements as part of a broader review of investment platforms in recent months, noting the company’s push toward cost transparency and simplicity for everyday investors.

Prospective customers should still account for fund-level costs that can affect net returns. While platform fees are being removed, the ongoing charges figure (OCF) on the individual funds and ETFs remains a consideration. In addition, foreign-exchange costs and the interest earned on uninvested cash can influence total returns, particularly for investors who hold cash allocations or international investments within SIPPs and mutual funds. Investors should compare the OCF and any dealing costs across their chosen funds when evaluating the true cost of ownership, even when platform fees are zero.

The pricing shift is a notable step in Freetrade’s ongoing strategy of offering a comprehensive set of accounts with minimal upfront charges. It reflects a broader industry trend toward fee transparency and zero-commission investing in certain product areas, while continuing to rely on revenue from paid premium features for more advanced tools and services.

This announcement follows a broader period of strategic change at Freetrade since its acquisition by IG. The company has aimed to widen its product range and maintain a consumer-friendly pricing profile in a market where cost is a growing differentiator for new and existing customers. Investors and savers should weigh the total cost of ownership across platforms, including any paid tiers, fund-level fees, and trading costs, to determine which platform best fits their retirement and investment goals.

In summary, Freetrade is accelerating its transition to a fee-free core offering for SIPPs and mutual funds, while maintaining optional paid tiers for those who want more sophisticated tools and faster support. The rollout on 22 January 2026 will be watched closely by investors who want low-cost access to retirement accounts and diversified fund exposure, especially as the platform continues to expand its fund universe and competes with both specialist fund platforms and traditional asset managers.