Hi folks, new to Freetrade here and I’m very interesting in opening a Stocks & Shares ISA to avoid the tax implications of any potential gains I might make.
I am aware that there is a £2 minimum order size, at the time of writing section 14 of the general Terms and Conditions states the following:
If you hold a position in a Security which is worth less than £2.00 (for example, if the market value of your position falls, if you sell part of your position, or as a result of a corporate action on that Security), you may not be able to sell this position. In order to sell the position, you may need to buy more of this Security so that you own a position worth more than £2.00 and are then able to sell your position in this Security. In circumstances where this is not possible, you may not be able to sell your position.
Meanwhile, at the time of writing this help article states the following:
You can close your ISA in-app by tapping the ‘Close your stocks & shares ISA’ button in the ‘Manage your ISA’ screen. In order for this to work, you’ll need to have sold all of your shares and withdrawn/transferred out all cash first.
It’s possible I’ve missed something or misunderstood, but it appears to me that a situation could arise where one has shares left in their ISA which are valued at less than £2 (and thus can’t be sold), but for whatever reason are no longer available for purchase. As a result, it would be impossible to close the ISA and prevent further monthly ISA account charges since the ISA cannot be completely emptied of securities.
Can anyone shed some light on whether this scenario could occur and how Freetrade would handle it if it did?