FSCS protection

Curious to find out whether people split their investments across multiple platforms if you have significantly over £85,000 to invest to make use of the FSCS protection.


Glad somebody else have same thought.

I do, this year will be my last year saving to my ISA on freetrade. I will stop topping up at around 60K to give some room of possible investment growth to be covered by FSCS protection.

I like the platform though really, effective and low cost. I don’t know any other platform with similar quality. :confused: Probably vanguard.

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No. There’s no reason to, and I believe that people may be misunderstanding what the protection is for.


The £85k only applies in the case of fraud or moving to another broker. Otherwise your assets are ringfenced: you own the shares, and cash is held in a separate account. In the case of freetrade going bust, there may be a transaction cost in moving to another broker, which would be covered up to the £85k. The only way you would lose is if the entire operation of freetrade is fraudulent, i.e. you do not own actually the shares, and the cash has not been ringfenced as required, or if the cost to change broker exceeds £85k.


There were £1M+ SIPP’s transferred in, which is a strong vote of confidence as these are such long term products.

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Thats actually my reason. I am not saying freetrade may be a fraud, it’s just for my peace of mind.
To be fair, it’s not only freetrade, I probably will have multiple accounts across multiple platforms and all of them will be below the FSCS protection.

At some point when your more comfortable you may want to reassess your risk. You’re essentially costing yourself money and unnecessary management to mitigate a risk which essentially doesn’t exist


I’m okay paying extra costs, it’s like an insurance policy for me. I will just have to find the cheapest insurance.

I am a buy and hold etf index investor, I distribute my holding evenly between ishares and vanguard etf for world tracker in case one of them may be fraud, which sounds totally ridiculous.

Plus it’s nice to back the competitors, It wouldn’t be fun if freetrade were the only game in town.

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I accidentally started off all this discussion in another thread.

Can a moderator move


to here?

BTW, it seems that this is the most useful answer to my original question about FSCS protection:

and specifically this link:


What bank / financial group does Freetrade use for their FSCS protection? I couldn’t find this information on the official FAQ, and I’d like to avoid accidental mixing of Freetrade protected quota with other investment platforms’ quotas backed by (potentially) the same bank.

What you are referring to applies to banks which are owned by the same institution. Since Freetrade isn’t owned by a specific banking institution, the “quota sharing” as it were wouldn’t apply.

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I believe (correct me if I’m wrong) that it would apply for any cash deposits in GBP which are not invested as these will sit with freetrades bank. Eg your cash deposits in freetrade would share the same combined protection of your own bank account if they are under the same bank

Haven’t checked in a while so I may be wrong. Certainly that doesn’t apply to investments

Do you think there will be more than 10 cheap brokers in UK in 10+ years?