Dear Freetrade team,
I want to make a premise. I am the customer 100XXX of Freetrade and I opened a beta account from the Netherlands in the early 2020. On top of that, I participated also in the last 2 crowdfunding rounds. With this I want to point out that I was one of the biggest supporter and believer in Freetrade and its mission.
However, today I received an email that made me a bit angry (…and sad at the same time) because Freetrade could have handled the situation much much better.
The email received about the fact that Freetrade is closing my beta account. The exact email is reported below:
We really appreciate your support in joining our beta launch to a select number of EEA customers. Your participation and feedback has been helpful for us to ensure our final product is suitable for people in the Netherlands. Thank you!
Over the next few weeks, we’ll be closing your Freetrade beta account, as we prepare for our pan-EEA launch under our EU-regulated entity.
Why is my account being closed?
Since our initial beta launch, European expansion has been a top priority for us as part of our mission to get everyone investing. We’ve made big steps forward, including securing our licence from Sweden’s financial regulator, receiving our pan-EEA passporting licence and onboarding our first private beta customers in Sweden.
As part of progressing this European rollout, we need to close any beta accounts held by EEA customers under our UK-regulated entity, Freetrade Limited.
What does this mean for me?
You have until 25 July 2022 to sell any investments and withdraw any funds in your Freetrade account. As of now, you will not be able to place any more buy orders. Once you have withdrawn any remaining cash, we’ll close your Freetrade account within two working days. You can also request a closing CSV statement of your account activity by replying this to email.
If you choose not to action this by 25 July 2022, or we do not hear back from you before then, we will execute the sell orders, and transfer the resulting cash on your behalf into the Wise account that you used to initially add cash to your Freetrade account.
Can I use Freetrade in the future?
Yes! Following our launch in Sweden, the Netherlands will be a key market for our European expansion and we can offer you the chance to become a customer again at the earliest opportunity. If you’d like to stay updated on our progress, let us know and we’ll add you to our mailing list.
We truly appreciate your support in getting us to this stage and look forward to welcoming you as a Freetrade customer again in the future.
We apologise for any inconvenience caused in this process. Please don’t hesitate to reach out if you have any questions.
This is not neat from Freetrade to communicate this in such a short notice and in such a later stage. This potential issue could have been known long time ago and it could have been flagged much much earlier.
Now I am forced to close my positions and I will go for a 40% loss (given the recent market downturn). I would have liked much more if Freetrade would have communicate this 1 year ago so that I would have been fully aware on what was coming. So here you guys lacked clarity and transparency towards me…your customer.
I was somehow afraid that this would have happened so I even asked several time on the Freetrade community for clarification but nobody from Freetrade bothered to answer me (see screenshots below). This is not how you put your customers first (…especially early customers that are also shareholders).
I would like to have a clarification from the Freetrade Management team on the situation.