It's going to be difficult to find something that's free. Youtube is an investment, just like almost any hobby, even though this one can be rather expensive, even down to the software being used. You may not find a decent, completely free program, as most video editors that can output that kind of quality are made by people who want to get paid for that kind of service. I use d3dgear for the actual game footage, OBS for the webcam (OBS takes up too much CPU for me, so I just assign it the webcam and same recording hotkey as d3dgear), and NCH VideoPad Editor for editing. Overall, that's about $95 (granted you don't get illegal versions).
I can say, though, that with NCH being a 30 day free trial, then $60 for literally everything you'll ever need, it's one hell of a deal compared to the other $900 programs that do the same thing. If you can muster up at least that, you'll be set for life.
If you need an example of what all this can do, feel free to take a look at my latest tomb raider video. It's full HD, runs smoothly, and the editing is barely noticeable except for the end screen.
