Hi
I’m new to Freetrade, but already love the platform and all it believes in achieving in the future.
I’m in the process of moving over my sips pension, total 85K value to FT.
Plus I plan to put 20K into my FT Isa.
Just want to know what people are comfortable in terms of maximum value of a portfolio invested in Freetrade? Are people putting all their eggs into one basket or splitting across various brokers?
Hi @lessharma welcome to the forum and to FT.
You’re question might best be answered with this link —> Keeping your money safe
Thank you for the link, so in theory if anything was to happen to FT, in theoretically I still own my shares and ETFs.
Hi and welcome to the forum.
You might also be interested in this thread where people talk about using other investment accounts as well as Freetrade: How many investment accounts do you have?
Absolutely- the only way you need to worry about the £85k limit for the FCA protection is is FT have broken their rules AND go bankrupt. They’ll be subject to default audits and spot check so this seems highly unlikely.
Edit - see @Eden ’s post below with more clarity.
Not necessarily true. If Freetrade go bankrupt and don’t break any rules, you still have to pay administration costs. the FCA have in the past used FSCS protection to cover those costs assuming your eligible for FSCS protection (if you don’t know if your not, then you are)
The way I understand it is that, provided the transaction costs are less than £85k, you’re covered, unless you had a lot sitting as cash, in which situation cash + transaction costs would need to be less than £85k. Or if freetrade was a complete scam and you didn’t actually own the shares you could lose everything above £85k, but we’re pretty confident that’s not the case.