Frec Overview
Frec is a modern financial technology company dedicated to making sophisticated wealth-building strategies accessible to everyone. Its flagship product is AI-driven Direct Indexing, a powerful investment approach previously reserved for institutional or high-net-worth investors. Instead of buying a single Exchange-Traded Fund (ETF), Frec allows you to own the individual stocks that make up a market index (like the S&P 500). This direct ownership unlocks significant advantages, primarily through automated tax-loss harvesting and portfolio personalization. Frec is an SEC-registered Broker Dealer and Registered Investment Advisor, with customer assets held at Apex Clearing and protected by SIPC insurance, ensuring a high level of security and trust.
How to use Frec
Getting started with Frec is a streamlined process designed for modern investors:
- Create an Account: Sign up on the Frec website. The platform supports various account types, including individual, joint, business, and trust accounts.
- Fund Your Portfolio: You can fund your account with a cash deposit or by transferring existing assets, such as stocks or ETFs, from another brokerage. Frec can manage the transfer tax-efficiently over time.
- Select an Index: Choose from over 16 available indices from leading brands like S&P® and Russell®. Options include popular broad-market indices like the S&P 500®, Russell 2000®, and various sector-specific or ESG-focused indices.
- Customize Your Strategy: This is a key feature. You can personalize your chosen index by excluding specific stocks or entire sectors (e.g., fossil fuels, tobacco) or by adjusting the weights of companies you believe in.
- Automated Management: Once set up, Frec's algorithms take over. They continuously monitor your portfolio and perform daily tax-loss harvesting, automatically selling positions at a loss to offset capital gains taxes and then reinvesting the proceeds to maintain your target allocation.
- Monitor and Access Other Features: Track your performance and tax savings through the Frec dashboard. You can also utilize other Frec products like a high-yield Treasury account or borrow against your portfolio with a low-rate portfolio line of credit.
Core Features of Frec
- AI-Powered Direct Indexing: Replicates index performance by holding individual securities, providing greater control and tax opportunities than ETFs.
- Daily Tax-Loss Harvesting: Sophisticated algorithms automatically identify and realize losses to reduce your tax liability, potentially adding significant "tax alpha" to your returns.
- Portfolio Customization: Exclude or overweight specific stocks and sectors to align your investments with your personal values (ESG), market outlook, or existing holdings.
- Broad Index Selection: Invest in a wide range of indices covering different market caps, sectors, and regions.
- Low-Cost Portfolio Line of Credit: Borrow against your investment portfolio at a competitive variable rate (Effective Federal Funds Rate + 1%).
- High-Yield Treasury Account: Earn a competitive yield on your uninvested cash, kept liquid and secure in money market funds.
- Commission-Free Stock & ETF Trading: A self-directed trading account is available for trading individual stocks and ETFs with zero commission fees.
- Robust Security: Frec is an SEC-regulated fiduciary and FINRA member, providing SIPC insurance up to $500,000, with additional excess insurance from Apex Clearing.
Use Cases for Frec
Frec is particularly beneficial for:
- Tax-Conscious Professionals: Ideal for individuals in higher tax brackets who want to actively minimize their capital gains tax throughout the year.
- Passive Investors Seeking an Edge: For those who believe in index investing but want to enhance returns beyond what a standard ETF can offer through tax savings.
- Values-Driven Investors: Enables the creation of personalized portfolios that reflect ethical, social, or environmental beliefs by excluding non-compliant companies.
- Investors with Concentrated Stock Holdings: Provides a tax-efficient pathway to diversify a large single-stock position over time without triggering a large, immediate tax event.
- Anyone Seeking Institutional-Grade Tools: Democratizes access to direct indexing, a strategy that traditionally required very high minimums and was offered by expensive wealth managers.
Advantages of Frec
Frec stands out from other investment platforms due to several key advantages:
- Superior Tax Optimization: Frec's daily tax-loss harvesting can capture up to 2x more tax losses than typical robo-advisors that use ETFs, directly boosting your after-tax returns.
- Cost-Effective: The advisory fees are extremely competitive, often on par with or lower than the expense ratios of corresponding ETFs, but with the added benefits of tax harvesting and customization.
- Unmatched Personalization: Go beyond one-size-fits-all ETFs and build a portfolio that is truly yours, tailored to your financial goals and personal values.
- Simplicity and Automation: Frec handles all the complex trading, rebalancing, and tax optimization, making a sophisticated strategy feel as simple as owning an ETF.
- Transparency and Security: Frec offers a clear fee structure with no hidden costs, combined with top-tier regulatory compliance and security protocols to protect your assets and data.
Pricing and Plans
Frec's pricing is based on a transparent annual Assets Under Management (AUM) fee for its Direct Indexing service. There are no trading commissions for the direct indexing strategies.
- The fee varies depending on the chosen index, starting as low as 0.09% per year.
- Sample Annual Fees & Minimums:
- S&P 500®: 0.09% ($20,000 minimum)
- CRSP US Total Market: 0.13% ($50,000 minimum)
- CRSP US Small Cap: 0.15% ($50,000 minimum)
- Russell 2000®: 0.26% ($50,000 minimum)
- S&P 500® Shariah: 0.35% ($20,000 minimum)
- MVIS US Semiconductor: 0.35% ($20,000 minimum)
- Self-Directed Trading: $0 commission on stock and ETF trades (other regulatory fees may apply).
- Portfolio Line of Credit: A competitive variable interest rate of the Effective Federal Funds Rate + 1%.
Traffic
Latest traffic
Status
Monthly traffic trend
- 2025-9: 27.3K
- 2026-1: 62.8K
- 2026-2: 56.0K
- 2026-3: 40.6K
- 2026-4: 74.9K
- 2026-5: 81.7K
Geography
Top 5 countries / regions
- 🇺🇸United States98.6%
- 🇨🇦Canada0.7%
- 🇮🇳India0.6%
Traffic sources
| Source type | Percentage |
|---|---|
Direct | 90.3% |
Referral | 6.0% |
Email | 3.7% |
Top keywords
| Keyword | Cost per click |
|---|---|
| frec | $4.54 |
| frec direct indexing | $0.00 |
| frec login | $0.00 |
| frec long short | $0.00 |
| frec margin rate sofr | $0.00 |
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