Frec: Direct Indexing

Frec is a financial technology tool that offers direct indexing for tax-aware investing. It allows users to passively invest in the market while potentially saving on taxes through strategies like tax-loss harvesting.

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At a glance

Pricing

Paid

Free tier

API

Skill level

Mixed

About

What is Frec: Direct indexing?

Frec provides sophisticated investing strategies, primarily direct indexing, to make tax-aware investing accessible. Users can invest in various indices, including S&P 500 and Russell 1000, with options for classic, long short, and diversify direct indexing. The platform focuses on maximizing tax savings through features like tax-loss harvesting and allows for personalized portfolios. Frec also offers a portfolio line of credit and high-interest cash accounts with Treasury. It aims to provide advanced investing capabilities without the need for a traditional wealth advisor, with assets held securely at Apex Clearing and insured by SIPC.

Best used for

Ideal for individual investors who need to optimize their investment portfolios for tax efficiency, diversify concentrated stock holdings, and access advanced investing strategies. Especially valuable for those looking to save on taxes through direct indexing without a traditional wealth advisor.

Common actions

invest tax-efficiently

diversify investments

manage portfolio

save on taxes

mobile_appios

Capabilities

Key features

Direct indexing
Tax-loss harvesting
Diversify concentrated stocks
Portfolio line of credit
High-interest cash accounts
Multiple index options

Target Audience

startup founderfreelancerproduct managersales rep

Integrations

Not yet documented

Pricing & Plans

Paid

Free

FAQs

What is the minimum investment required for Frec's direct indexing?

The minimum investment for Frec's classic direct indexing starts at $20,000. For long short and diversify strategies, the minimum investment ranges from $100,000 to $500,000, depending on the specific strategy chosen.

How does Frec's direct indexing help save on taxes?

Frec's direct indexing helps save on taxes primarily through tax-loss harvesting. This involves selling investments at a loss to offset capital gains and, for ordinary income, up to $3,000 per year. Unused capital losses can be carried forward to future tax years.

What are the fees for Frec's direct indexing services?

Frec's classic direct indexing has an annual fee ranging from 0.09% to 0.35%. Long short direct indexing incurs annual fees of 0.50%-1.30% plus financing costs, and the diversify strategy has annual fees of 0.60%-1.10% plus financing costs.

Are my assets safe with Frec?

Yes, your assets are held in your name at Apex Clearing, a large U.S. custodian with over $200B in assets. Apex Clearing also has a strategic partnership with State Street, and your assets are insured by SIPC, providing protection in unlikely events.

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