Iām not worried as the 85K limit applies to cash. Invested shares are held in trust separate to Freetrade.
I imagine really high net worth individuals donāt have loads of pots of 85K sitting around in multiple accounts.
For my own perspective I would sooner pay one lot of fees to Freetrade instead of multiple fees to multiple brokers.
Not sure how you come to the multiple fees bit?
You pay fees on whatever you buy. If you buy legal and general in Hargreaves Lansdowne account you donāt pay fees in freetrade as well. Thatās what your statement implies.
I to think the Ā£85,000 applies only to bank accounts and not stock broker accounts (including cash) Anyone have a link that says otherwise?
If freetrade go down then your only worry would be fraud/theft. A possibility not something you can put a risk rating to though.
Next I am told by someones whose brocker did go into administration that it took about 4 months before his shares and cash were transferred, in the meantime he could do nothing. If he was dependent on the dividends he would have been trouble.
I have some dividend shares in Hargreaves Lansdowne although itās only because I canāt buy them on freetrade.
Not sure how you come to the multiple fees bit?
You pay fees on whatever you buy. If you buy legal and general in Hargreaves Lansdowne account you donāt pay fees in freetrade as well. Thatās what your statement implies.
@Mikepike I was referring to platform fees. Eg I pay Ā£5 a month to FT for the isa platform. HL have a charge / percentage of fund value as does pretty much every other brokerage. Hope that is clearer.
Got you but isnāt ISA Ā£3 and nothing if you pay the Ā£9.99?
According to your link
Reference number: 760531
This firm is no longer registered with the FCA as an Appointed Representative of an authorised firm, and can no longer carry on regulated activities.
Do not start to do regulated business with an AR that is no longer registered.
?
For those who have over Ā£85k on Freetrade (certainly not me) have you considered transferring it? No offence to Freetrade but when you start talking 6 figures a mobile app isnāt exactly the safest option is it?
Of course people might ask why you deposited that much in the first place but itās not as simple as that. Firstly you have to take fees into account and many people want to start with a free option. Then thereās people who may want to hold on to some stocks for a long time such as Berkshire or Coca-Cola. Or in the more unlikely event find the next Apple or Nvidia at the perfect time.
No concerns here.
For large large sums use IBKR, its the only platform i trust fully with big money.
Heard that some people have been confused trying to make deposits there.
Its slightly more labourious and secure conscious but thats fine by me. I wouldnt say confusing and i wouldnt let other peoples lack of understanding deter.
The UI at IBKR is definitely clunky and difficult to follow.
Cheap though and should be more secure than Freetrade (loss making) or T212 (heavily reliant on CFD).
No harm having a mixture of accounts with IBKR, II, HL, FT, T212. They all have their pros and cons, and it is good to have a bit broker diversification.
85k is practically irrelevant. Your primary protection comes from the fact that your shares are held with a custodian, not FSCS
FSCS is a compensation scheme, itās not a guarantee on your investments. It also may cover more than just mismanagement of your investments (I.e say if your investment never happened but was stolen), it also often compensates for administrative fees and other things. So you donāt even necessarily have 85k of ācoverā on your investments.
The custodian is your main protection, they hold your investments outside of the broker, so any issues with the broker donāt affect your investments.
I donāt think this really matters all that much either. Sure if your got the money to throw around to want to call up and have someone make a trade for your for Ā£25 a pop then Freetrade canāt do that. But it would be faster to just do this on the app.
What changes about the custodianship of my shares if I use an app or a website? Nothing
In any case I think Freetrade hinted that theyāre working on making the web version fully functional
With the changes to ISAs as well next year thereās no reason you couldnāt have multiple brokers with investments spread across them as theyāll be easy to use at the same time. However imo, to do it for the 85k FSCS, is to not fully understand what that compensation scheme is or how your investments are protected
