An ISA, or Individual Savings Account, is a tax-efficient savings or investment account that allows you to put money into a wide range of investments, from individual stocks and shares to funds, bonds and ETFs.
For more details, check our guide on what is a stocks and shares ISA.
Freetrade is an award-winning, commission-free investing app. We're a member of the London Stock Exchange and a FCA-regulated stockbroker. All Freetrade accounts are covered by the Financial Services Compensation Scheme (FSCS).
The Freetrade Stocks and Shares ISA lets you invest in hundreds of UK and US stocks, exchange-traded funds, all with no commissions.
Your Stocks and Shares ISA costs a flat fee of £3/month, and there are no commissions for placing trades.
You can use our fees calculator to compare against other ISA providers.
Investing puts your money to work in companies across the world, so your long-term return with a stocks and shares ISA could be higher than a cash ISA.
And using an ISA, your long-term returns should see much less tax than with a regular investing account.
When you invest, your capital is at risk. Tax rules for ISAs can change and their benefits depend on your circumstances.
An ISA, or Individual Savings Account, is a tax-efficient savings or investment account that allows you to put money into a wide range of investments, from individual stocks and shares to funds, bonds and ETFs. This type of account is also known as a ‘tax wrapper’ and essentially allows you to be exempt from paying income, capital gains and dividend tax when you place up to £20,000 into your ISA account.
Your annual ISA allowance for the 2021/2022 tax year is £20,000. This means you could put up to a total of £20,000 into one or multiple ISAs (eg. LISA, cash ISA, stocks and shares ISA), and you would be exempt from paying income, capital gains and dividend tax on any gains you make. Make sure you use your allowance by the end of the tax year on 5 April each year. Any unused allowance won’t be carried over to the following tax year, so you lose it forever if you don’t use it.
To transfer your stocks and shares ISA from another provider to Freetrade, you just need to complete a form, and we will do the rest for you. The transfer process might take four to six weeks, but we will let you know when it’s all completed.
You’ll need to be 18 years of age or over and a UK resident. If you’ve already opened a stocks and shares ISA in the current tax year, you won’t be eligible for a new account. You can’t open a stocks and shares ISA for someone else.
If you want to make the most out of your 2021/22 ISA allowance you have to open and contribute into an ISA before the deadline at midnight on Monday 5 April 2021.
Any contributions made after this time will count towards next year's allowance, which means you could lose out.
You don’t need thousands of pounds to open an ISA account. If you want to open a stocks and shares ISA with Freetrade, you can start from £2.
Yes, you can hold more than one ISA at once, so you can have multiple cash ISAs or stocks and shares ISAs with different providers. However, each tax year you can only open or contribute to one of each type of ISA account. Your yearly allowance will be split across these accounts.
If you wish to transfer your existing ISA to a different provider during the tax year, you will be able to do so; just watch out for any transfer out fees that might apply.
No, you can’t transfer stocks you already hold in a regular brokerage account into an ISA. To get the tax benefits that come with an ISA, you have to deposit money into one and then invest it.This means anyone who holds stocks and shares in a regular brokerage account will have to carry out bed and ISA transactions if they want to move them into an ISA.