You may have seen this recently, FreeTrade the UK start up with a mission to shake up the investment market and cut fees is going to launch a SIPP. You can get a free share worth at least £40 to £2000 if you register interest before 6th December.I’ve done it already, registered interest that is. I’ve not decided to move over but I am considering it.
Freetrade SIPP details
The SIPP costs a flat fee of £9.99/month or £7 if you are a FreeTrade Plus Member. Presumably the same range of stocks and ETFs are available as on the App itself. (I’ve written about the app here) and the cost is competitive and comparable to other SIPPs out there, particularly for larger holdings.
For comparison Hargreaves Lansdown charges up to £200 a year (£16.67 per month) and YouInvest charge £100 a year (soon to be £120). So you are not paying more PLUS the trading is practically free – the major selling point of FreeTrade.
What is pretty amazing about this promotion is that the freeshare that you could get is very generous. Transfering just of £10,000 gets you something worth at least £90, £100,001+ gets you £700! This is the most generous scheme I’ve seen of its king.
How to get it?
Sign up to FreeTrade and join the waitlist by 6th Dec 2020, open and contribute to your SIPP within 30 days after it’s launched and get a free share worth £40-£2,000. It could be Coca-Cola, Netflix or Amazon!
If you want to get a taste of the app, you can use the following link to get a free share once you invest (I’ll get one too).
Just how much can I get?
It’s important to not let the bonus tail wag the pension dog but it’s something to think about. I’ve done some calculations below and show that for investments of between £2,000 £4,000 the bonus is worth at least 1% on your SIPP transfer. Above that it will be below 1%. You might be lucky and get a share worth £2,000 like Amazon but I wouldn’t get on it. Still, the value of the shares should outweigh the costs associated with closing one account and transferring the shares – something which is a major drag that some providers (cough Hargreaves, cough Lansdown) put to keep customers stuck. This could be just what you need to make the move.
Have a look, a think and DYOR.
Good luck, GFF