Freetrade T&C change clarification

Hey, just going through the updated terms and services and I’ve notice that alpha subscriptions will be directly taken from the users funds instead of an attached account like isas do? Also within the new terms and conditions is the ability for freetrade to take and sell the users assets, stocks and bonds in order to cover their fees?

Wouldn’t it be easier to setup an attached bank account similar to how the isa works now? And will fees be taken from our isa accounts? Wouldn’t this eat into our limited isa limit every year?

Same as other brokers. Not getting worried over 36 quid a year over 20k

4 Likes

I’d rather not have to hold funds in my freetrade account doing nothing in order to pay for fees, this seems like an incentive for freetrade to earn interest on the money sitting in my account, especially if they start taking funds from my isa account and eating into my isa limit. Why not just take funds from my linked account?

Many people arent so careful with bank balances and freetrade dont want bouncing charges. Much easier and probably cheaper to take from cash. Nothing to do with earning interest. Most people hold more than 3 quid cash anyway

Kudos on reading the terms :slight_smile:

I’m with you on it’ll be better/cleaner to be able to pay via Direct Debit, or recurring Card payments.

All brokers have a clause like this, some are more precise in how it works. Normally it’s a last resort sort of thing.

6 Likes

I agree with you strongly, I never hold cash in my account as the account pays no interest and so it is only a drain on your portfolio returns.

Can we get a confirmation alpha will only take funds from the none isa account? If freetrade intends to go down the rout of needing their customers to leave cash in their accounts i’d prefer they don’t eat into my isa limit with it.

I’m just another Freetrade customer. So unfortunately I can’t confirm or deny anything.

Hey @Britishj, the app will charge for Plus subscriptions the exact same way as for the ISA subscriptions (you’ll add a card to pay for it).

We’ve always had the right to collect our fees due from the cash we hold for the customer, as does every other stockbroker. It had been in the T&Cs before the fractional upgrade, so it sounds like a bit of a misinterpretation.

Do let us know any questions about the T&Cs! We tried to make them as simple and straightforward as possible, and it’s good to know if there are any parts we have to clarify!

23 Likes

I’d agree that the terms do suggest that there is no option to pay for the Alpha fees in the same way that ISA fees are paid (ie from your bank account), so it read as if it was something different from what is currently in place.

1 Like

Thanks for the clarification, the section on how alpha would be handled made it seem like funds would be taken from the freetrade account itself and if no funds were in the account shares would be sold to make up for it.

This can still happen if 1) you haven’t given Freetrade the instruction to collect fees from your nominated bank account, or 2) if said nominated account didn’t have the money to pay for the fees.

1 Like

My main concern was having to leave money in my account otherwise freetrade would sell my assets, to me this seemed like an extra step to earn interest on my money, now that its been clarified that its simply a bank transaction this seems fine. I like to keep my fees separate from my investments to avoid confusion.

I have reviewed the terms and conditions and I’m struggling to understand the order allocation section of the order execution policy.

It states that where Freetrade deem it necessary and in customers best interest they may aggregate orders. In the next paragraph it states that aggregating may be to a customer’s disadvantage.

This seems contradictory that Freetrade would deem something that was to my disadvantage to be in my best interest.

I welcome any thoughts on this.

I emailed Victor, no reply yet, though I appreciate he’s a busy man!