Frec review
Updated October 12, 2026 · SumCue Editorial Team
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Our verdict
Frec Direct Indexing provides tax-aware market exposure through directly held stocks with automated harvesting and personalisation across indices. For households wanting index tracking with tax management, it combines diversified portfolios, concentrated stock transitions and Treasury cash support in one service.
Key facts
Robo-advisors
Facts checked September 26, 2026, 3 sources
Apps and profiles
- Get the app
- App Store
Pros and cons
Pros
- Automates tax-loss harvesting while tracking chosen market indices
- Personalises portfolios across multiple indices within one service
- Transitions concentrated stocks toward diversified index tracking gradually
- Provides long short direct indexing alongside core index strategies
Cons
- Focuses narrowly on direct indexing rather than broad fund choice
- Centres Treasury cash around investing balances rather than separate saving
- Builds long short methods from index tracking rather than independent selection
Who it suits
- Investors holding concentrated stocks who want gradual diversification
- People interested in long short methods within index investing
Who should look elsewhere
- Savers seeking standalone cash products
- Investors wanting broad active fund selection
How Frec compares
Where Frec is available
- Available
- United States
- Licence in United States
- SIPC (SIPC member 70797), checked September 26, 2026
Countries from the brand (Source, checked September 26, 2026)
Frequently asked questions
How does direct indexing help manage taxes?+
Direct indexing holds individual stocks rather than a single pooled fund structure. Harvesting targets losses on specific positions while maintaining broad market exposure. The aim is to reduce capital gains impact while staying fully invested.
What is long short direct indexing at Frec?+
Long short direct indexing extends the core index approach with offsetting long and short positions. Frec presents it as a strategy once limited to hedge fund access. It is now offered as part of its accessible direct indexing range.
What is Frec Diversify?+
Frec Diversify is designed for people holding concentrated stock positions. It moves those holdings toward a diversified portfolio that tracks an index. The gradual transition happens over time with the aim of limiting tax impact.
Does Frec offer anything for cash holdings?+
Frec offers Treasury alongside its investing service for uninvested cash balances. The option sits within the same investing relationship rather than as a separate account. It is positioned for available cash waiting to be invested.
Which regulators oversee Frec?+
Frec is overseen by SIPC. (Source, checked September 26, 2026)
What account types does Frec offer?+
Frec offers these account types: Joint, Corporate. (Source, checked September 26, 2026)
Which company operates Frec?+
Frec is operated by FREC SECURITIES LLC. (Source, checked September 26, 2026)
How can I contact Frec support?+
Frec offers support through Email, Help-centre, Community. (Source, checked September 26, 2026)
Sources
- sipc.org/list-of-members checked September 26, 2026
Backs: Investor protection, Legal entity, Regulators, Licences
“reportingFileNumber=70797; name=FREC SECURITIES LLC”
- frec.com/pricing checked September 26, 2026
Backs: Management fee, Minimum investment, Portfolio types, Support channels
“Classic 0.09%-0.35% annual fee ... Long short 0.50%-1.30% annual fee ... Diversify 0.60%-1.10% annual fee”
- help.frec.com/en-us/account-types checked September 26, 2026
Backs: Account types
“Frec only allows you to open margin brokerage accounts. The following types of margin brokerage accounts can be opened on our platform: Individual, Joint tenant with right of survivorship, Joint...”
Compiled from 3 source pages, checked October 13, 2026. We did not open an account.
Not confirmed yet: Minimum deposit, Stock trade fee, Account fee, Inactivity fee, Markets, Retail accounts that lose money.