Freetrade to make SIPPs and mutual funds fee-free from January 2026

Freetrade said its self-invested personal pension (Sipp) and mutual funds will be free of platform fees from January 22, 2026, a move designed to broaden access to its investment range and sharpen its competitive edge in a crowded market. The change follows a year of platform evolution under its parent company, IG, and comes as the platform has been pushing to redefine what a fee-free core offering can look like in DIY investing.

Currently, the Sipp is available only on Freetrade’s most expensive tier, priced at £11.99 a month or £9.99 a month if paid annually. When the change takes effect, users on monthly plans will save nearly £144 a year, assuming they would have kept the Sipp on the monthly rate. The shift aligns with the broader industry trend toward eliminating account fees to attract and retain customers who might otherwise be deterred by ongoing charges.

Viktor Nebehaj, chief executive of Freetrade, said the move would help customers keep more of their money and remove a barrier that could prevent potential investors from getting started: "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." The company has been tightening up pricing and expanding access since its takeover by IG, including the introduction of funds to complement its existing stocks-and-shares offering.

Freetrade’s pricing changes come as Interactive Investor and other rivals adjust their own structures, a shift that amplifies the platform’s ambition to position itself as a very low-cost option for everyday investors. While the core accounts will still come with paid tiers that unlock advanced tools and priority customer support, the removal of account fees for SIPPs and mutual funds signals a broader strategy: reduce the non-investment charges that have long deterred smaller savers from building a diversified retirement and fund-based portfolio on the platform. The company also notes that even when there are no account fees, investors still pay the underlying costs embedded in the investments themselves, such as the ongoing charges figure (OCF) of funds and any trading costs within the portfolio. Lower foreign-exchange charges and the potential for higher interest on uninvested cash may also accompany a subscription, depending on the plan chosen.

As Freetrade moves to broaden its investment universe, it remains a mixed offering among rivals. Prosper already offers a fee-free Sipp, but its platform does not support buying individual stocks and shares, limiting customers to around 200 funds. The lack of share trading on Prosper makes it a different proposition for investors who want both funds and stock exposure in one place. In contrast, Trading 212 does not charge account fees and has a broad selection of stocks and ETFs, but it does not currently offer a Sipp. InvestEngine offers a Sipp but focuses on ETFs, and transfers into its platform are limited to specific providers.

Freetrade’s current fund lineup sits at about 450 funds, with more on the way. By comparison, major fund supermarkets such as Hargreaves Lansdown and Interactive Investor offer more than 3,000 funds, underscoring the trade-off investors face between breadth of choice and cost. Freetrade has argued that 450 funds will be enough to help new and existing investors get started and build diversified portfolios, while the platform’s expanded access to mutual funds could broaden appeal for those who prefer diversified exposure over individual stock selection.

The timing of Freetrade’s free Sipp and mutual funds also dovetails with a broader shift in the UK market toward fee transparency and lower barriers to entry. IG’s takeover has helped fund an accelerated rollout of lower-cost products, expanding the platform beyond a focus on individual stocks to a more holistic investing experience that includes SIPPs, mutual funds, and a growing catalog of funds. Nevertheless, the pricing move does not negate the fact that investors will still face costs embedded in the products they buy, such as fund management fees and transaction costs on some funds and ETFs. Users should still review the ongoing charges and ensure that a zero-account-fee structure truly aligns with their investment strategy.

Prospective savers should also weigh how SIPPs and fund access on Freetrade fit with their retirement plans and investment horizons. While removing the platform fee lowers the barrier to entry, the decision to place money in a Sipp or mutual fund should consider long-term expense ratios, currency effects, and the diversification of holdings. The platform also notes that while SIPPs and funds will be fee-free on the platform, a subscriber still benefits from any cash-interest advantages and lower FX fees associated with certain tiers.

Looking ahead, Freetrade’s strategy will be to balance discounting with sustainable service levels. The firm will continue to offer paid tiers for users who require more advanced charting tools, priority support, and other premium features. The evolution toward a fee-free core offering may attract a broader audience, but it will also place pressure on the firm to monetize through other channels, including the cost structure of the underlying funds and any ancillary services. Industry observers will be watching how the zero-account-fee model affects customer retention and volume, especially as other platforms adjust their pricing in response to Freetrade’s moves.

In summary, Freetrade’s move to eliminate platform fees for SIPPs and mutual funds from January 2026 marks a notable step in the UK’s low-cost investing landscape. By reducing the non-investment costs that can deter new savers, the platform aims to attract more users who want retirement and diversified fund exposure without paying ongoing platform charges. Whether this strategy translates into a meaningful increase in market share will hinge on how the broader cost environment evolves, how many investors take advantage of the Sipp and mutual fund access, and how the platform sustains its service quality and investment options in the face of growing competition.