ISA transfers are here

Freetrade Team

August 15, 2019

Freetrade Team

We’ve launched the first version of our ISA transfer service.

We’ve just started rolling out the first version of our ISA transfer service.

Now almost everyone with an ISA can move it over to Freetrade and grow their long-term investments with way fewer fees.

A reminder of the bumper benefits of an ISA:

  • You pay no UK capital gains tax on your investments
  • You pay no UK income tax on your dividends*
  • You can put in and invest up to £20,000 each year

It’s one of the best, most tax-efficient ways to build investments over the long-term.

*You do still pay US tax on US dividends, but these are deducted at source with zero hassle

Let’s dive into transfers!

What can I transfer?

You can currently transfer:

  • An existing stocks and shares ISA with another provider
  • A cash ISA with another provider
  • An innovative finance ISA with another provider

You can’t transfer junior ISAs or lifetime ISAs (yet).

How do I transfer?

Simply enter your email into the form here to express your interest in a transfer. Within two weeks, our ops team will be in touch to kick off the process.

There will be a bit of physical paperwork to change hands since virtually all ISA providers demand paper forms to action transfers, but our saintly ops team will guide you through. 😇

We’re currently targeting four weeks from the time we contact you to complete the transfer. The timing might vary based on demand.

You can transfer an ISA to us whether or not you already have a Freetrade ISA. If you have a Freetrade ISA already, the transferred ISA will be merged into it. If not, your transferred ISA will start a new, better life as a Freetrade ISA. ❤️

Why should I transfer?

You’ll be able to make Freetrade your main, sole ISA.

So firstly, that means commission-free investing. You’ll be able to invest new contributions and re-allocate your current investments with no commissions or fees.

Unlike many ISA providers, we don’t charge any annual percentage fee on the investments you hold in our ISA. We only charge a flat £3 per month (starting late 2019 — right now the ISA is totally free). Why is that good for your ISA?

If you’re building your ISA over the long-term, a percentage-based fee would grow as the value of your ISA does. Even a relatively small 0.1% annual charge would result in £100 yearly fees on a £100,000 ISA.

But £100,000 sounds like a lot, right? Over 20–30 years of saving and investing, it’s actually not.

If you managed a 7% average investing growth per year, started with £5000 and added £3000 each year, you’d hit £100,000 in year 19.

With a Freetrade ISA, your fee will be the same, small flat amount forever. £3 — about the price of a coffee a month (depending on how fancy your coffee is).

We won’t have any more work administering your huge ISA in, say, 20 years time than your current one. So why should you pay more?

We also don’t charge any entry or exit fees to transfer in or out. If you want to go, we’ll miss you, but we’ll never try to stop you with a charge. Maybe a song. But no charge.

Finally, you’ll be able to fully manage your ISA in a beautiful mobile app. ✨

Although the transfer service is open to everyone, it’s still very much an early feature, effectively in testing mode. Over time, we’re going to enhance and automate the process and ultimately bring it into the app.

We’re really excited to give everyone the opportunity to make Freetrade their single, central ISA.

Let us know what you think in the community.

Learn more: All you need to know guide to transferring your ISA

Important Information

This should not be read as personal investment advice and individual investors should make their own decisions or seek independent advice.

When you invest, your capital is at risk. The value of your portfolio can go down as well as up and you may get back less than you invest. Past performance is not a reliable indicator of future results.

Freetrade is a trading name of Freetrade Limited, which is a member firm of the London Stock Exchange and is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales (no. 09797821).

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