Experiences of Freetrade?

cockerWalker

I have had a sipp and ISA with Freetrade for nearly 6 months and have found them to be ok. Downsides are no auto dividend reinvestment and funding via direct debit takes several days (I assume they're taking some interest on the funds). Customer service on the premium plan is quick, but that just tends to mean that you get told "I don't know" quickly.

However, they are cheap and their app isn't terrible. I could see me holding accumulating ETFs in an isa with them, even if I transfer my sipp and anything paying dividends somewhere else.

winkowinko

Been with them for about a month. Transferred an ISA and SIPP in for the 1% bonus. They seem OK, in fact fine for my needs. The only negative is that it takes them 2 to 3 days to reply to a message (basic plan), but they do respond.

Bills_tobepaid

I would urge caution with using Freetrade given recent experience of gain/loss presentation in their individual share display which can lead to totally incorrect gain/loss values being shown, misleading you to believe you are in average gain when actually in a actual average loss on share trades due to their FIFO (first in first out methodology)

ie this is a simple view as it’s difficult to expand a full portfolio share

Month 1. 20 shares at £20. Total £400

Month 3 10 shares at £5. Total £50

total £450

average share £450/30 =£15.00

sell 10 shares at £2, a loss of £18 per share. Then FIFO methodology removes £20 shares (£200) from the gain loss calculations but not at the £2 value attained rather the initial £20 paid

value of remaining portfolio is (£20 - £200) loss £180 leaves £250

average share shows at £12.50 giving false impression you are now in a displayed average share gain when you have in fact lost £180

They won’t accept their methodology is incorrect and on a complex portfolio involving various sell/buy events the value of gain they would show is likely to lead to the investor making ill informed decisions , they don’t make this clear that it cannot be relied on, I am also using HL and they are accurate.

masonic

https://forums.moneysavingexpert.com/discussion/comment/82041786#Comment_82041786

FIFO is certainly not the correct treatment for UK taxation. In general it is best to do your own CGT calculations and not rely on your investment platform, as they won't accept responsibility for any mistakes.

Also, anyone who holds the same securities in more than one place would get an incorrect figure from a single investment platform that cannot see the whole s104 holding.