Future increases to the ISA monthly cost

I understand that from July, Freetrade will charge a monthly fee of £3 for its ISA, which I believe to be a reasonable price.

My question is - are there plans to increase this fee further down the line? Is there a transparent roadmap for future fees that members are likely to have to pay? Once a member is heavily invested in a Freetrade ISA, he/she is unlikely to want to close their account. Therefore, it would be easy for Freetrade to slowly putting up its fees and, while it might discourage potential new customers, existing members would probably be reluctant to close their accounts and search for a cheaper deal.

Utility companies do this all the time - they sell you a service/product at one price then raise it 3 months later (especially broadband companies).

Now, I understand that Freetrade is business, after all, but since I’ve been on this forum and using the app, it feels more like a community which appears to look after its members. I’m hoping that continues into the foreseeable future and any increase to the monthly cost of an ISA is reasonable and justified.

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We don’t have any plans to increase our fees for ISAs.

If we did increase any of our fees then we’d give you plenty of notice in advance. But taking advantage of customers by increasing fees once they’re committed to using our service would quickly erode trust and put others off signing up so that’s just not something we’d consider, when it comes to making this sort of decision.

Obviously ISA transfers out of Freetrade will be available to you in the not too distant future too so you’d have an easy way to leave us if we did anything that wasn’t in your best interests here.

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Thanks for that, Alex :+1:

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Might be an unrelated question, but are there plans to make it possible to transfer an existing Freetrade portfolio to Freetrade ISA account?

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Do you mean moving a GIA to an ISA?

If so, that’s already possible: sell and re-buy in the ISA, unless you mean them automating that process for you, with the selling and rebuying happening under the hood?

If you want a formal transfer process, with in-specie transfers, that’s not going to happen, for legal reasons.

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Fair enough, that pretty much answered my questions :smiley: Thanks :slight_smile:

There’s more info about this here - Internal GIA to ISA transfers?

You don’t have a long term plan of what you’ll do because of inflation?

It would be reasonable and expected for the cost to go up every few years in line with inflation, especially if the £3 only provides limited margin and you won’t be able to bring those costs down over time.

If the cost is actually much less than £3 though… leave it the same forever! :upside_down_face:

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