Why would I keep cash in Freetrade?

As an unexperienced investor, can someone explain the portfolio breakdown of cash in freetrade?

I don’t understand why you would keep cash just sitting in freetrade when it could be sitting in lots of different places like isas or just using the money to buy stocks?

I understand you can get 3% on plus but without plus I don’t see any advantage unless it’s targeted to day traders but freetrade doesn’t seem like the platform for that?

It just shows you how much cash you have, since cash is also an asset. That’s it. Not sure why this warrants a dedicated thread :smiley:

I tend to build up cash in FT so that, when I spot something I want to invest in, I’m not having to wait for my deposit to turn up from my bank. Also, I don’t think I’ll miss the 0.3p interest I might have earned!

5 Likes

Well my cash is sat there ready to be invested if I see anything that takes my fancy, it’s around 10% the total which is what I’ve seen some suggest in the past. However I suppose it’s easy to buy and sell as you want quickly now so it might be better invested in something safe which can be accessed easily as needed. But 3% isn’t bad.

1 Like

Agree with Tony, for me it’s a bit of a convenience thing to have cash ready ‘just in case’ although deposits into FT are pretty fast these days. Nevertheless there isn’t really a great place to keep cash atm, I used to put it into premium bonds but they take ages to withdraw and then transfer into FT if there was a big opportunity.

Also don’t forget that depending on the time of year, I.e. nearing the end of March some people just put cash into their isa to not lose their allowance (especially if you don’t think it’s a good time to invest at that point)

1 Like

You’d keep cash in Freetrade that’s waiting to be invested.

Because you’d have allocated that money for investing, or it’s in cash in the ISA account waiting to be invested.

Since investing isn’t meant to be an impulse game lots of people have large amounts of cash sitting around for the particular opportunity they’re waiting for.

HL hold £13 billion in client cash for example

You need to have cash easily available anyway, not in stocks or bonds. Thinking that cash for emergencies (or future opportunities) is wasted money is a big mistake IMO.