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How can you check whether a financial service is safe?

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UKPublished 6 October 2026 · Written by BuyMeWhiskey Editorial Team · How we check facts

Do not judge a financial service from reviews alone. Check the FCA register and permissions, understand which compensation scheme applies, compare the real charges, and verify the firm’s contact details independently before sending money or personal information.

Next question: Do you need a solicitor for a will or probate? →

Before using an unfamiliar regulated financial service, check the firm and its permissions on the FCA Firm Checker.

Check a firm with the FCA

Start with regulation, not reviews

When people ask for “experiences” of a company such as Freetrade, an estate-planning service or an unfamiliar financial provider, reviews can be useful for spotting service issues but they are not a substitute for regulatory checks. The FCA says almost all firms providing regulated financial services in the UK must be authorised or registered, and you should check that the firm has permission for the specific service you want.

This distinction matters because a business can be real, well reviewed and still not be authorised for the financial activity you are being offered. The FCA’s Firm Checker is designed to show whether a firm is authorised and whether it has permission for the service in question.

Match the permission to the service

Checking the company name is only the first step. Look at the activities the FCA says the firm is allowed to carry out. An investment platform, mortgage firm, payment provider and financial adviser can have different permissions.

For example, the FCA specifically warns that estate-planning, wills and probate advice are outside its current regulatory remit. That means an estate-planning business should not be assessed as though an FCA authorisation automatically covers its will-writing service.

What this means for an investment platform such as Freetrade

Freetrade’s February 2026 support information says its Basic plan includes a General Investment Account, Stocks and Shares ISA and SIPP. It also lists commission-free dealing on the investments it offers and a 0.99% FX fee on non-GBP trades on Basic. These are provider-published product details, not a guarantee of investment performance or a substitute for checking the regulatory position.

The right question is therefore not “do people like Freetrade?” It is “does the platform offer the account and investments I need, what will I pay, how is the service regulated, and what protection applies if the firm fails or something goes wrong?”

Understand FSCS protection

FSCS protection is not a general promise that you cannot lose money. For investment business, FSCS says compensation may apply if an authorised firm fails and cannot return protected investments or money owed, but it does not compensate simply because an investment falls in value.

The investment compensation limit is currently £85,000 per eligible person, per firm for a firm failure covered by the investment rules. Deposit protection is different: eligible deposits with UK-authorised banks, building societies and credit unions are protected up to £120,000 per person, per authorised firm from 1 December 2025.

Look beyond the headline fee

Platform or subscription fee: an account may be free at one level and charge a monthly fee at another.
Fund charges: the fund itself can have an ongoing charge.
Trading charges: dealing fees can matter when you buy or sell.
FX charges: buying non-sterling investments can introduce currency costs.
Other costs: spreads, transfer charges or exit fees can matter even if the headline dealing fee is zero.

MoneyHelper recommends doing the maths because small percentage or fixed charges can add up over time. The cheapest-looking platform is not automatically the cheapest for the way you invest.

Verify the contact details yourself

Clone-firm scams are designed to exploit the fact that a real authorised firm's name can be copied. The FCA advises checking the firm's contact details on the Firm Checker or Financial Services Register and using those details rather than a phone number or link supplied by an unexpected caller.

A polished website, a familiar logo or a copied Firm Reference Number is not enough. If someone approaches you about an investment, slow the process down and independently open the official regulator's page.

Know who you can complain to

For a regulated financial service, you will normally complain to the firm first. Depending on the service and the firm's status, the Financial Ombudsman Service may be available if the complaint is not resolved.

For an unregulated service such as some will-writing or estate-planning work, the complaint route can be different. That is another reason to establish exactly what the business is selling before you compare customer experiences.

A five-minute legitimacy check

Search the exact legal or trading name in the FCA Firm Checker.
Confirm the firm has permission for the service being offered.
Check the firm's website and contact details against the regulator's record.
Read the fee schedule, including FX, dealing, transfer and exit charges.
Check whether FSCS or another protection applies to the particular money or product.

That process is much more durable than relying on a thread of customer experiences. Reviews tell you what people thought; regulation, terms and protection tell you what the service actually is.

Illustrative annual subscription cost on Freetrade plans

Worked example

Illustrative comparison: suppose an investor is deciding whether a free Basic plan or paid subscription is worthwhile. Freetrade's February 2026 support page lists Standard at £5.99 a month and Plus at £11.99 a month.

Standard annual subscription: £5.99 × 12 = £71.88.
Plus annual subscription: £11.99 × 12 = £143.88.
Difference: £143.88 − £71.88 = £72.00 a year.

Those figures show why the right question is about the service you actually use. An investor who rarely needs the additional features may not benefit from paying more; another investor may value them. Before deciding, compare the subscription with fund charges, dealing costs and FX costs, then separately check the FCA permissions and the protection applying to the account and investments.

Is Freetrade safe to use?#

Safety is not something a customer review can settle. Check the current FCA record and permissions, read Freetrade’s account and fee information, and separately check which FSCS protections apply to the investment service; protection does not cover normal investment losses.

How do I check if an investment platform is FCA regulated?#

Use the FCA Firm Checker or Financial Services Register and search the firm’s legal or trading name. Do not stop after finding a matching name: confirm the website, contact details and the specific permissions cover the investment service you intend to use.

Does FSCS protect investments if a platform goes bust?#

It can, but the protection is limited and product-specific. FSCS says investment compensation can apply when an authorised firm fails and cannot return protected investments or money owed, with the investment limit generally £85,000 per eligible person per firm; falling investment values are not covered.

Are will-writing and estate-planning companies FCA regulated?#

Not necessarily. The FCA currently lists advice on estate planning, wills and probate among services outside its regulatory remit. An FCA register check therefore cannot by itself establish whether a will-writing service is suitable, competent or properly insured for the work it offers.

What should I check before giving an investment firm my money?#

Check the firm’s FCA status and permissions, independently verify its contact details, understand the charges and identify the protection that applies to your particular product. Be especially cautious if someone pressures you to transfer money immediately or uses a copied firm identity.

Are zero-commission investment platforms really free?#

Not necessarily. A platform can charge no dealing commission and still have fund charges, subscription fees, foreign-exchange charges or other costs. Compare the complete fee structure for how you actually invest rather than relying on a single “commission-free” headline, and check the charges that apply to your own account and transactions.

Keep reading

Next question →Do you need a solicitor for a will or probate?

Sources

Figures were checked against these sources before publication. If a rule changes, we update the page and show the new date.

General information, not personal financial advice. Rules depend on your circumstances; check the official source or speak to a regulated adviser before acting.