What would happen to my stock portfolio in the unlikely, unthinkable, event that Freetrade goes out of business? (event which of course will never happen)
Let’s assume I have a portfolio held with Freetrade currently worth £90,000, composed of £30k Apple (US stock), £30k Aviva (UK stock) and £30k gold physical ETF.
Freetrade closes operations. What happens?
For the sake of the examples below, let us assume the market price of the 3 securities remains stable.
- Do I still maintain ownership of the 3 securities? (i.e. my portfolio is still worth £90k)
- if yes, “where” are my securities? How can I trade them? Can I just open an account with another broker and have them transferred there?
- if not, am I covered by the FSCS protection scheme?
- does the scenario change at all between US and UK stocks?
Don’t mean to be negative or think about the worst! (it feels a bit like talking about life insurance with your partner in your 20s…). But I thought worth asking.
Apologies if the answer is obvious or the question has been asked already and I couldn’t find it.