In the coming days, we’ll be updating our terms and conditions to include a new section on securities lending.
In line with our goal to build a sustainable business, securities lending will provide Freetrade with a new and stable revenue stream, allowing us to keep our fees low, and to continue to improve our product and services as we scale.
As always, please do put any questions you might have here and we’ll get back to you as soon as we can!
Alex
Important information:
When you invest your capital is at risk, the value of your investments can go down as well as up and you may get back less than what you invest. With securities sending there is a risk of loss should the borrower default before the securities are returned, and due to market movements the value of collateral held has fallen and/or the value of the securities on loan has risen.
In the coming days, you’ll get a push notification with more details and a form to provide your consent. This will include our updated terms and risk disclosures.
There is a grace period ending on 1 June 2022 during which we must get your consent, and throughout this period you will see a banner on your portfolio screen as a reminder.
I think this is relatively reasonable. It’s worth noting that this applies to Sipps and GIAs but not Isas.
It would be good to have some sort of opt-out, with other brokers you can pay a little more to opt-out, for example, perhaps the option could be an incentive to sign up for plus?
I think this needs an element of rage across all the threads! There was previously a mention of the benefit being shared with users and there’s no mention of opting out.
Freetrade have been pretty poor in terms of communication recently and this isn’t helping…
That’s why I wanted to look at the Securities lending page to see if there was anything there about those points, but it’s password protected
Also I think it would have been better if the thread title mentioned Securities Lending, as I think some people just ignore updates in terms, so you have a point regarding communication
People - personally I see no serious problem. Freetrade rightly and correctly warns us that there is a risk and advises what measures it takes to mitigate those risks.
Personally I wouldn’t make this a storm in a tea-cup. If you are unhappy then it really is very clear: don’t accept the T&C’s and therefore find yourself another broker.
Yeah, In principle I have no problem with it. I think we knew it as coming if we read the pitch deck at the last crowdfund. Not sure this is the best way to announce it though
They set an expectation with this at a previous AMA around perhaps sharing income from this or other possibilities. If they hadn’t mentioned it before then people would be less annoyed now.
They’ve provided a short blog which hasn’t covered all questions that you’d expect to be asked.
