Possibly worth doing to encourage a monthly income from the user instead of just the free offering but a fair point - I hadnt thought about that
As all the shares are actually registered under FreeTrade as our nominee, transferring wouldn’t involve going to the market at all. If you are transferring from one account to another, this is a simple ledger task in the background for FreeTrade. This is a very solvable issue.
The only obstacle is the ISA regulation stating that entry into the ISA envelope has to be in GBP cash.
So the shares would technically need to be sold to GBP and then repurchased, but this could all be done on the FT ledger without actually going to the Stock Market.
FT buys the shares from your normal account and sells them back to you at the same price, into your ISA account.
I guess the ISA is less appealing to me now.
Almost like starting the portfolio again ;/
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FCA rules enforce trading on the market too. I.e. freetrade cannot selftrade with themselves when doing a sale & repurchase. (I.e. just a ledger accounting entries).
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I was not aware of that. That’s a real pain.
Perhaps best to leave everything in the basic account and just start funding your isa. When income comes in to the basic then transfer that over and when you’re ready to sell particular shares in the future you can just move the cash over at that point.
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Wulfy, this is what I’m going to do in the mean time
Didn’t realize it’ll be as hard as everyone is making out, I thought seen as the shares are still under the same name and account it wouldn’t be a big feat to just move them between basic and ISA
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My own intention (partially resulting from the conversation here) is to leave the purchases in the basic account as they are and as others have said transfer dividends over infrequently. When the shares reach the point of encroaching on CGT I’ll sell them then buy in the ISA.
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Note future ISA / tax rules can change. In the current climate If you think you’ll be making 12k profit I’d think about ISAing them asap.
FYI, if you want Freetrade to transfer the cash from your basic account to your ISA, it takes 3-5 business days (at least in my case). The alternative is to withdraw the money to your bank account and then send it back to Freetrade with a different payment reference.
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Wow that long!?
I was planning on selling a lot today and buying all back today in the ISA. Guess that’s not possible?
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No, you can’t do it that quickly.
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Took 5 days for mine to move over (triggered the process two weeks ago). Cost me a few shares and in hindsight would have just gone straight for the ISA.
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Would be great to be able to move stuff over automatically
Plus would help uptake of ISAs
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Hopefully they will get bed & ISA at some point then, I imagine it would encouraged people to switch
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Would be good to get this as part of Alpha
Agree that this is a much needed feature - or at the very least ability to move money between accounts in real-time. Am trying to do this at the moment and Im on day 9 of the process anxiously hoping the SP isnt go to move much. Seems crazy that it is quicker to initiate a BACS withdrawal and then refund in your ISA than just moving it yourself within the app.
From my experience doing this by hand is quicker than anything platform mediated.
I.e. it takes many days more to complete platform assisted “bed & ISA”, versus doing it yourself.
Usually it would be quicker to use support but the backlog is still causing delays of around a week. Is it too late to DIY?
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I don’t think so. Finds still show up as withdrawable so if no sign of progress I’ll just do that instead and should then get them on Monday at least.