I’m approaching the 85k threshold and would appreciate some thoughts on how other investors work this. Either carry on regardless or open another trading account . Like all investing decisions this is very personal in opinion . I would presume if any broker went under I own the shares so they would not be an issue .
Thanks in advance
You’ve pretty much answered your own question here. It would be an absolute pain no doubt, but you would go to the companies where you hold the shares directly in the event of the broker going bust.
From what I understand, the £85,000 threshold applies to cash held in savings accounts and therefore wouldn’t be relevant to you unless in the unlikely event that you actually had over £85k uninvested.
Technically speaking you don’t. Freetrade owns the shares, and holds them in trust for you. You just own the associated benefits (increase in value, dividends ect.) In practice, i don’t think this should make any difference to us.
In my opinion, the biggest risk is a breach of the rules, if our shares are misused then our money (above 85k) may be at risk.
Numerous reasons. You may deliberately have that amound of cash in the amount for some reason. You may have stocks which you can’t access for year while trying to track them down. There may be forced sales for whatever reason.
You need to look at the Madoff documentary on Netflix. Not saying it is the same thing by any means but it is a lesson in keeping your wits about you and not having all your eggs in one basket.
They can always use the transfer feature to get part of it into another ISA, even a Cash one if they are not going to invest for the near future. Yes, it does take time but better than sitting earning 1% in a FreeTrade ISA isn’t it?