Frec reaches $170M in customer assets simplifying complex tax strategies for self-directed investors
Frec, the groundbreaking investment platform redefining direct indexing for self-directed investors, today launches its highly anticipated mobile app, underscoring its commitment to simplicity, low fees, and tax efficiency. This launch follows the announcement of the company’s Portfolio Line of Credit product. Frec’s focus on high-net-worth self-directed investors—those who align with the passive, low-cost investment philosophy—differentiates it from competitors that have pivoted toward retail investors or advisor models. With its mobile app, Frec aims to further its mission of empowering this specific segment with tools that simplify sophisticated strategies, enhance tax savings, and optimize returns.
For investors seeking liquidity beyond conventional loans, a portfolio line of credit enables them to borrow against their investments, converting their portfolio (including their direct index) into a ready source of funds. A portfolio line of credit, also known as a margin loan, uses existing securities as collateral, offering investors access to capital without disrupting their long-term investment strategy. On Frec, investors can borrow up to 70% of their investment in the portfolio line of credit. This flexibility serves multiple purposes: investors can use it to establish a new direct index position (for example, by combining 50% cash with 50% borrowed funds), or they can leverage their existing portfolio to increase investments in positions where they expect returns to exceed the current 5.58% borrowing rate.
“Staying true to our roots as a direct-to-consumer platform is core to who we are,” says Frec CEO and Founder Mo Al Adham. “Unlike others in the space, we’ve never lost sight of the self-directed investor. Our mobile app is paramount for serving this audience, ensuring they have the tools they need to build and manage portfolios and create tax savings. This isn’t about chasing retail trends; it’s about enhancing access for an overlooked segment of high net worth self-directed investors.”
Frec’s unique approach contrasts with other robo-advisory firms, which have shifted their focus toward broader retail markets. Frec’s strategy avoids distractions by catering specifically to investors who prioritize low fees, simplicity, and tax efficiency — all delivered without reliance on wealth advisors.
Since its last milestone of reaching $100M in Customer Assets in August 2024, Frec has increased its Customer Assets to $170 million, reaffirming its dedication to serving financially savvy individual investors. Frec continues to leverage technology to make complex investment strategies accessible. From its comprehensive range of direct indices to innovative portfolio management tools, Frec’s platform supports investors in achieving their financial goals with precision and control. With direct indexing projected to outpace ETFs and mutual funds in growth, Frec is poised to continue leading the charge in democratizing these strategies.
About Frec
Established in 2021, Frec Markets Inc. (“Frec”) is a financial technology company dedicated to helping customers build wealth through innovative and accessible investment solutions. Frec offers a suite of automated self-service products that simplify sophisticated investment strategies traditionally available through wealth managers. These products include direct indexing and portfolio lines of credit. Frec also offers a high-yield treasury account.
Frec's Direct Indexing is one of the first direct-to-consumer solutions that enables customers to invest in a variety of indices, combining the benefits of index investing with added tax savings and customization. By optimizing for both returns and tax efficiency, Frec empowers investors to achieve their financial goals with greater precision and control.
To learn more about how Frec is revolutionizing wealth management, visit Frec.com.
Disclosures
Investing involves risk, including risk of loss. Borrowing against your portfolio adds to that risk, including losing more than invested. Borrow rate will vary with EFFR. The amount available to borrow is based on the positions in your portfolio. The initial borrow amount available is typically 50% of your portfolio value, and can gradually increase to a maximum of 70% when your portfolio appreciates in value.
Brokerage services provided by Frec Securities LLC, advisory services provided by Frec Advisers LLC, an SEC RIA. Both are wholly owned subsidiaries of Frec Markets, Inc.
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