Horses are confusing.

I just got the first free horse, and I read about how theres a quest line that gives you a free phoenix fire horse, but that you cant ride it if youre FTP. But can I breed it to get the cosmetics on a default breed horse?

I know theres some coat colours, patterns and special effects like sparkle and dirty that u can get through breeding and through cookies, but is that really it? Is there rlly no way to get a cool horse without paying real money 🥲