SPAC stocks

Choose from over 200 special purpose acquisition companies, with more added every month. Download the app and start investing commission-free.
Capital at risk. Other charges may apply.
See our pricing table.
spacs hero

What is a SPAC?

A special purpose acquisition company, also known as a "blank check" shell corporation, is a company formed for the sole purpose of raising money through an IPO and using this capital to acquire an existing business.

SPACs are unique entities, with no pre-existing business operations. They’ve become a popular vehicle for taking private companies public since they can provide an easier route than the traditional IPO process.

In general, a SPAC is set up by a management team, formed by financial experts, private equity sponsors and activist investors, that leverage their knowledge of a specific industry to raise capital.

Why invest with Freetrade?

  • White check mark on black circle
    Commission-free trades
  • White check mark on black circle
    Over one million users
  • White check mark on black circle
    Over 6,200 UK and US stocks and ETFs
Capital at risk. Other charges may apply.
See our full pricing table.
smart phones with freetrade app open

How do SPACs work

Typically, when a SPAC IPO’s, it issues ‘units’ for $10.00 each. These units usually contain a common stock element and full or partial warrants that give the holder the right to buy more shares in the future.

SPAC units generally trade by themselves until 52 days following the IPO, at which time the units split into the common shares and warrants and get traded separately. Once the units split, retail investors can access these instruments on platforms such as Freetrade.

The capital raised via the IPO is deposited in a blind trust until the SPAC agrees on a merger or acquisition. There is a window of two years to identify a potential merger; otherwise, the SPAC must return the funds they raised to their shareholders.

If the de-SPAC transaction is completed, then it’s common for the SPAC to change its name and ticker on the stock market.

Risks to consider when investing in SPACs

Despite their popularity, investing in SPACs carries certain risks. Unless the de-SPAC transaction is in progress, you don’t know what business the SPAC will acquire and therefore you can not count the corresponding risk that the acquisition might carry.

When you invest, you also don’t know if the SPAC will successfully complete an investment within the required period.

Like all investments in stocks, your capital is at risk when you invest in SPACs. The relationship with deal-making means SPAC share prices can be particularly volatile.

Choose from thousands of investments

Stocks

Invest in thousands of companies listed on the LSE, NYSE, NASDAQ, and across Europe.

Stocks

Invest in thousands of companies listed on the LSE, NYSE, NASDAQ, and across Europe.

ETFs

Choose from a wide range of exchange-traded funds including index, commodity, and bond ETFs from providers like Vanguard, iShares, Invesco, and more.

REITs

Add residential or commercial real estate assets to your portfolio without the hassle of buying and managing the properties yourself.

Investment trusts

Choose from hundreds of investment trusts across a wide range of sectors, geographical areas, and markets worldwide.

UK Treasury bills

Earn a fixed yield on your cash. Low-risk and backed by the UK government. Rate subject to success in tender.
Pick the plan that suits you best
Save 17% when you choose an annual subscription.
Basic
£0.00
/Month
Accounts
  • White check mark
    General Investment Account
Benefits
  • White check mark
    A great way to try Freetrade before transferring your ISA or pension
  • White check mark
    Unlimited commission-free trades. Other charges may apply.
  • White check mark
    Trade USD and EUR stocks at the exchange rate + 0.99% FX fee
  • White check mark
    Access to a selection of Freetrade’s 6,200+ global stocks and ETFs
  • White check mark
    1% AER on up to £1,000 uninvested cash
  • White check mark
    Fractional US shares
  • White check mark
    Access to mobile app and web platform
Standard
£4.99
/Month
£59.88 billed annually
Accounts
  • White check mark
    General Investment Account
  • White check mark
    Stocks and shares ISA
Everything in Basic and:
  • White check mark
    Access to 6,200+ global stocks and ETFs, including gilts
  • White check mark
    A lower FX fee of 0.59% on non-GBP trades
  • White check mark
    3% AER on up to £2,000 uninvested cash
  • White check mark
    Early market access with pre-market trading
  • White check mark
    Automated order types, including recurring orders
  • White check mark
    More stats and analysis, including analyst ratings and EPS estimates 
Plus
£9.99
/Month
£119.88 billed annually
Accounts
  • White check mark
    General Investment Account
  • White check mark
    Stocks and shares ISA
  • White check mark
    Personal pension
Everything in Standard and:
  • White check mark
    A lower FX fee of 0.39% on non-GBP trades
  • White check mark
    New! Access to mutual funds
  • White check mark
    Priority customer service
  • White check mark
    5% AER on up to £3,000 uninvested cash
  • White check mark
    Free, same day withdrawals
Basic
£0.00
/Month
Accounts
  • White check mark
    General Investment Account
Benefits
  • White check mark
    A great way to try Freetrade before transferring your ISA or pension
  • White check mark
    Unlimited commission-free trades. Other charges may apply.
  • White check mark
    Trade USD and EUR stocks at the exchange rate + 0.99% FX fee
  • White check mark
    Access to a selection of Freetrade’s 6,200+ global stocks and ETFs
  • White check mark
    1% AER on up to £1,000 uninvested cash
  • White check mark
    Fractional US shares
  • White check mark
    Access to mobile app and web platform
Standard
£5.99
/Month
billed monthly
Accounts
  • White check mark
    General Investment Account
  • White check mark
    Stocks and shares ISA
Everything in Basic and:
  • White check mark
    Access to 6,200+ global stocks and ETFs, including gilts
  • White check mark
    A lower FX fee of 0.59% on non-GBP trades
  • White check mark
    3% AER on up to £2,000 uninvested cash
  • White check mark
    Early market access with pre-market trading
  • White check mark
    Automated order types, including recurring orders
  • White check mark
    More stats and analysis, including analyst ratings and EPS estimates 
Plus
£11.99
/Month
billed monthly
Accounts
  • White check mark
    General Investment Account
  • White check mark
    Stocks and shares ISA
  • White check mark
    Personal pension
Everything in Standard and:
  • White check mark
    A lower FX fee of 0.39% on non-GBP trades
  • White check mark
    New! Access to mutual funds
  • White check mark
    Priority customer service
  • White check mark
    5% AER on up to £3,000 uninvested cash
  • White check mark
    Free, same day withdrawals

You’re just minutes away from commission-free investing

When you invest, your capital is at risk