Transfer out shares to other brokers

I’d like to have ability to transfer out basic & ISA accounts out to a different broker, in-sitsu (without selling everything into cash).

Freetrade is great, transfer in is great, but tides may change and it might be beneficial for someone to move to a different broker. Thus transfer out should be supported. Possibly with a fee, or like “transfer all & close account” way, to deter people from abusing freetrade simply for their fee free / low cost execution.

There could be multiple reasons for transfering out, due to product decisions of things that freetrade might not implement: lack of debit card topups, flexible ISA, investments into funds/trusts/PIBS/bonds, size of stock universe, fees, direct debit investments, etc. Nothing inherintly good or bad, just different choices and offering.

on another note people may, for whatever reason, become residents in a country where Freetrade doesn’t operate yet. They may even be unwilling to leave the platform but in those circumstances what can one do?

When that happens normally the accounts should be grandfathered into no new money contributions, and “close only” operation. I.e. HMRC allows one to keep all the ISAs one already has invested (and buy/sell inside them) just not contribute fresh money. But depending on new residency only might only be allowed to close or transfer out.

That’s cool isn’t it? :+1: to the HMRC :joy_cat:

I’m sure this would be a long term aim but there’s a lot they already have planned to do :grimacing:

Can’t access the roadmap atm coz WiFi is down (and it’s not even BT) but I don’t think it was on that yet

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Isn’t this a legal requirement?! I’m not interely sure but I think I’ve read in the news not too long ago that the process of changing brokers in an easier manner was going to be legally enforced. Let me check

Isn’t it that they can’t charge exit fees? Freetrade don’t, you can sell for free in basic trades and then withdraw your money

Yeah it might be that. Thanks

Doing that does not preserve tax free status of ISA invested money, and one still pays the transaction cost of bid-ask spread. As one cannot ever really buy & sell for the same price. Also, if one takes money and repurchase same shares in a different broker, one might end up doing that 3 days later (due to 3 day settlement cycle), and thus missing out on any gains whilst out of the market. It’s free - in a sense of no additional/different fees are paid. But overall operation has a cost.

Exit fees are not that evil, as there is non-automated paper work to negotiate asset transfers. Some cash transfers are done in a faster/facilitated fashion through BACS. And human time costs money.

ISA providers do not have to support transfer in.

I don’t know about transfer outs. There were talks of changing/banning/capping exit fees. But that is only consultations at this point, I thought. Would love to hear more.

It was only a comment on the legality, not if it was the best solution :grin:

I’d disagree that exit fees aren’t evil though. Brokers who charge a lot for a trade have made their money, they shouldn’t be charging people who want to leave them on top of that

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I found it

And in this second article

one can read at some point:
«As well as restricting exit fees, the FCA is also consulting on rules to allow investors to move all their holdings from one platform to another.

Some fund investors have trouble doing this at present, in situations when the same fund share class is not available when switching from one platform to another.

In turn, this forces investors looking to switch platforms to sell and re-buy, which among other things (such as being out the market for a small time period) could trigger a capital gains tax charge.

The FCA adds: “We aim to make it easier for consumers to move their assets to a new platform without unnecessary liquidation of investments.”»

So yes

But the plates seem to be shifting towards that direction.

I agree that fees aren’t evil per se. They simply have different impacts on different wallets.

I have no idea if Freetrade uses BACS, or Direct Debit or something else

That last charge isn’t really a charge. It’s a token

hey, thanks all for your replies!!!

I don’t think we got the answer - can we transfer out ISA to another broker? What do I need to know to do that?