Frec SmartInvest

Frec SmartInvest is a direct-indexing platform for self-directed investors that combines direct indexing, stock trading, portfolio-backed lending, and cash management, with a core focus on automating tax optimization and delivering a low-cost structure to boost after-tax investment efficiency.

The platform uses algorithms to perform daily automated tax-loss harvesting at the stock level, reportedly up to twice the efficiency of traditional ETF approaches. It more effectively identifies and executes loss trades to offset future capital gains taxes and optimize after-tax returns.

Fees are primarily based on assets under management (AUM). Direct indexing fees can be as low as 0.09%, with no additional ETF management fees. Stock and ETF trades are zero-commission, and the portfolio lending rate is the Fed Funds rate plus 1%.

Users can pledge their investment portfolio as collateral to obtain a loan up to 70% of its value. No credit checks, with competitive rates and flexible use of funds. This approach helps avoid capital gains taxes that arise from selling stocks.

Primarily suitable for self-directed investors seeking tax optimization, wanting to customize their portfolios, focusing on low-cost investing, or needing short-term liquidity without selling assets.

The platform is registered with the SEC, is a SIPC member, and user funds are custodied by a trusted third-party broker. AUM has exceeded $500 million and is used by employees of many well-known tech and financial firms, offering market credibility and compliance safeguards.