Depends on the bank as well. But this isn’t really how it would work in practice unless something went really horribly wrong like Adam running away with all your money.
In reality what might be more likely to be seen in the event a broker failed is that the 85K protection is used to cover any losses, including cash, fees, and assets held.
So for example, you have 600k in securities and 400k in cash, Freetrade goes bust and the administrator charges 5k in fees and there’s some small accounting issues with illiquid fractional shares amounting to 6k then he FSCS protection would cover the 11k in losses and costs and you’d get all you’re money back.
The idea that you’d lose 400k in cash and 600k in securities for example would be an absolutely catastrophic event that’s so unlikely to happen. The only reason I could see it happening is if there was some serious fraud and corruption in the company.
However you wont see millionaires opening 500 broker accounts just so they have 85k fscs protection because quite frankly that’s ridiculous.
presumably because they don’t guarantee holding assets in a nominee?
They’ve had to scale up their customer service due to a huge influx of customers (essentially double the customers in just a couple of months), unfortunately its not quick to hire good staff.
As to your question.
What are your concerns? what are your requirements? I don’t know if you get financial advice but with a million+ it might be advisable.
As for the technical consideration. Freetrade has FSCS protection and all money and assets are always held under a nominee as per the terms and conditions.