I wanted to post here to get a reply from Freetrade regarding their clearing broker being owned by one of the biggest GME shorts in the market, and how this may raise questions regarding the integrity of consumers relationship with the US side of the Freetrade platform.
Freetrade has in the past revealed that Drivewealth is their US clearing broker, the middleman responsible for organising the last leg of share transactions. Drivewealth is Freetrades gatekeeper to US stocks and dictates what margin Freetrade must put up before the transaction is finalized. This may have implications on Freetrades apparent “FX volume” problem.
Drivewealth is not just any old clearing broker, they are a relatively small firm in comparison to the big clearing houses, and are largely owned by one company in particular, Point72. Point72 is a hedge fund that is very very heavily on the short side of $GME. This fact, among the shady legal past of Point72’s owner, Steve Cohen, who has been investigated and settled out of court for charges of racketeering and insider trading. It is not a large step to guess that Point72 would be very disadvantaged by Drivewealth enabling large volumes of $GME to be bought by individual investors.
Freetrade should probably address directly to its customers and investors how they feel about the relationship between their clearing broker and large hedge funds which take highly leveraged directional bets in the market.