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I woke up yesterday morning to a serendipitous discovery that all my stock positions had successfully been transferred from Freetrade to Trading 212. There really is nothing more rewarding than seeing all investments under one stockbroker with a nice five-figure number staring back at you.

Since I started investing in stocks at the start of 2022, the only stock broker app that was available to me was Freetrade and it made my introduction to making investments into hand-picked stocks very straight-forward. But as my portfolio grew, so did my requirements and when Trading 212 opened its doors to new sign-ups (after being on a very long waiting list), I decided to see if the grass was truly greener on the other side... and it was.

Trading 212 had what Freetrade didn't:

• An active community of like-minded users commenting on their views and insights against each stock.
• 5.2% (as of today 5.17%) interest on held cash.
• Introduction of a Cash ISA.
• Ability to view stock graphs in detailed view with the ability to annotate specific trendlines.
• Free use of the use of a Stocks and Shares ISA.
• Lower FX rates.
• Fractional shares on ETFs.

Unfortunately for Freetrade, I just couldn't see a future where they could provide the features I needed in addition to free use of the service. I was being charged £60 per year for the privilege of a Stocks and Shares ISA - free on Trading 212.

Even though I explored Trading 212 when it became available last year, I made a decision to only start investing at the start of the 2024 tax year to avoid any ISA-related tax implications by utilising two Stocks and Shares (S&S) ISAs. This is now a void issue as you are able to invest in two different S&S ISAs as long as you do not exceed the yearly £20k limit.

Planning The Move

I am currently seven months into using Trading 212 for investing but it was only until October I felt I was in a position to transfer all my stock holding from Freetrade. Why such a long wait?

The wait was primarily due to not really understanding the correct route to transferring my portfolio without eating into my current years tax free allocation, whilst retaining the average stock price per holding. I also had concerns over the large sum of money to transfer and it's something that shouldn't be taken lightly.

I am hoping this post will provide some clarity through my experience in transferring my portfolio to Trading 212, even if it is tailored more towards what I experienced in moving away from Freetrade.

In-Specie Transfer

In-specie wasn't a term I was familiar with prior to researching how I could move my stock portfolio to another platform.

'In specie' is a Latin term meaning 'in the actual form'. Transferring an asset 'in specie' means to transfer the ownership of that asset from one person/company/entity to another person/company/entity in its current form, that is without the need to convert the asset to cash.

Before in-specie transfers, the only way to move from one stock broker to another was to sell all your holdings as cash to then reinvest again within the new brokerage. The main disadvantages of doing this is:

• Time out of the market creating more risk to price fluctuations.
• Potential loss due to the difference between the sell and buy prices.
• Additional brokerage fees when repurchasing the same assets with a new provider.
• Loss of tax efficiency if you have a large portfolio that might wipe out or exceed the yearly tax-free allocation.
• Missed dividend payouts.
• Taking losses on selling stocks that haven't made a profit.

I've noticed over the last couple of years in-specie transfers have become more universally supported amongst the smaller stock brokers (the ones you and I are more likely to use) such as Freetrade, Trading 212 and InvestEngine, which makes moving from one platform to another a much simpler process.

Even though the process has become simpler, it is still a time-consuming process as transfer completion can take anywhere between 4-6 weeks based on the coordination between both stock platforms.

My In-Specie Transfer Timeline

My own in-specie transfer had taken a little longer than I hoped - around six weeks with the key milestones dated below.

12/10/24

Initiated the transfer process in Trading 212 by selecting the stocks I wanted to transfer. You can select specific stocks or your whole portfolio. I based my transfer on selecting all my holdings and specifying the average stock price as I want to retain my position.

23/10/24

Freetrade emailed to confirm a transfer request has been received and to confirm that my portfolio is in order to allow the process to move smoothly, which entailed:

• Adding £17 fee per each US holding in my account.
• Rounding up any fractional shares. - Shares in their fractional state cannot be transferred. For one of my stock holdings, I decided to purchase slightly more and round up the total value rather than sell down as this stock in particular is in the negative.

12/11/24

Three weeks had passed and I hadn't heard anything from either party. I contacted Trading 212 support to report a delay in transfer and if any reason could be provided for this. I didn't get a reply, but the next day, things started ticking along. Maybe this gave them the 'kick' they needed?

13/11/24

Trading 212 completed arrangements with Freetrade and they were now in a position to start the actual transfer that will be over the course of a two week period.

21/11/24

I woke up to find all stocks had been transferred whilst maintaining my average stock price. There is still one minor job awaiting completion: transfer of a small amount of cash. The most important job had been done and I could now rest easy.

Next steps

Once the small amount of cash has been transferred, I plan on cancelling my yearly Freetrade Standard plan expiring in June 2025. By the time the transfer has been completed, I will have an outstanding 6 months left on my subscription that I can get refunded (minus a £5 admin fee).

At the start of 2021, I started looking into making my money work a little harder. This was primarily by having a better saving strategy in place as well as entering the world of investments.

Plum - Basic Route To Entry

Plum was my first foray into having something out of a banking environment to manage my money. Plum is a savings app that connects to your bank account and cards to analyse your spending to get an idea of how much money it can transfer from your account into its "saving pockets". The amount of money transferred can be configured to adjust how much money you want Plum to transfer. There are multiple options available within the app.

Once the money is transferred, you can either leave it within Plum as a separate pot of money to keep aside for a rainy day or go a step further and invest in funds. It was through this app that I got my first exposure to investing in stocks and giving it more of a serious thought after previously being quite reticent.

As great as the wide variety of fund portfolios offered by Plum are, I found them a little restrictive and wanted to venture into making my own decisions. I invested in two funds:

1. Tech Giants: Investing in technology shares like Facebook, Apple and Google.
2. Balanced Bundle: With 60% shares 40% bonds, this fund offers a balanced combination of shares and bonds.

I ended up making quite a nice return from those funds alone, but I felt I wanted more control. For example, the Tech Giants portfolio had a relatively small percentage of equity in FAANG companies.

Freetrade - More Control

I haven't entirely replaced Plum for Freetrade as I believe it still has its uses. Even though I withdrew all money from investment funds to re-invest into my stocks in Freetrade, I still use Plum to sneakily put money aside automatically based on my preferences.

Freetrade wasn't my first option for carrying out investments - it was Trading 212. Unfortunately, Trading 212 are not accepting any further sign up's "due to unprecedented demand" and have been on their waiting list for over a year. Trading 212 seemed to have a greater variety of shares and a range of investment types, including CFDs, gold and crypto.

I can't grumble with Freetrade as it has allowed me to invest in the majority of the areas I require, which is good for someone who is finding their feet in the investment game. Transferring funds is seamless.

Investment Strategy

My portfolio consists of S&P 500 and individual stocks in FAANG (and a few other) companies, where my monthly investment ratio is an 80/20 split:

• S&P 500 - 80%
• FAANG - 20% spread over multiple stocks

I plan on revising this ratio to a 70/30 split later in the year once all wedding expenses are done and can afford to gamble a bit more. As you can see, I am focusing on S&P 500 for the moment as I feel it's safer and overall less volatile.

For anyone new to investing, S&P 500 Index Fund is the safest place to start as you're investing in the top 500 large publicly-traded domestic US companies and is considered to be the best overall measurement of US stock market performance. The main benefit is that a decline in some sectors might be offset by gains in others.

Investments:

1. Vanguard S&P 500 (VAUG)
2. Microsoft (MSFT)
3. Amazon (AMZN)
4. Dell (DELL)
5. Apple (AAPL)
6. Google (GOOGL)
7. AMC Entertainment (AMC)

I see investing in S&P 500 Index Fund as putting things in place for long-term wealth and not short-term wins... Short-term wins I'm hoping to achieve through specific stock investments. AMC was a little bit of a wildcard investment as the stocks were so cheap and I just kept buying through the dip. It is only now I managed to receive a 56% return.

Conclusion

I've come late into the stock game as I know of people who have made quite a good return from the stock options made during Covid... Who would have thought Covid would be an opportunity where more money could be made???

Based on my current strategy, I know full well that I won't be getting a high return to supplement my current income and that's just down to playing it safe. I'm still kicking myself on why I didn't start sooner - even if it was just solely investing in an S&P 500. On average the yearly return is around 10% and pretty consistent.

If I had been quicker off the mark and invested £200 a month over the last 10 years, this would equate to £41500 with £17300 of interest. Probably best not to focus on time lost and just focus on this point forward.

My goal is by end of the year is to increase my portfolio and if I'm able to get some form of short-term reward, that's a bonus! I plan on writing a follow-up post by end of the year to report what worked and what didn't.

Disclaimer: I am not in any way a financial advisor and this post is just a write up of my thoughts.