Freetrade nominee

So I have been looking at freetrade nominee and it says “This means that in the unlikely event of Freetrade failing, together with a failure to safeguard your assets or some other failure, the value of your assets held with Freetrade is protected by the FSCS up to a maximum of £85,000”. I was just wondering what would make the safeguard fail and are people spreading their investments across other platforms or trusting the safeguards on Freetrade and only using them.

https://community.freetrade.io/t/what-happens-if-freetrade-goes-bust-which-of-course-wont-happen

Lots of info here. Essentially if you trust freetrade your stocks are held outside their accounts so are totally safe whatever the value. The 85k covers cash and fees to transfer your stocks to a new broker. Bigger issue is the time your money and stocks are tied up so it might be worth splitting for that reason, or in case a broker committed massive fraud.

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There was another similar discussion on FSCS protection which should help

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