How do I know if I can engage in corporate actions via my online investment platform?
07 March 2025
Question by Asa
Hi,
I wish you could investigate and write about what share trading platforms allow their customers to take up on rights issues and other corporate events, and what platforms don't.
I took for granted that I had this right, having invested many years through platforms that all offered this service, but have found out the hard way that Freetrade does not offer their customers to partake in any corporate action event and I have consequently lost out on rather substantial amounts of money. Is it even lawful? Even if they have squeezed it into paragraph 21 of their terms and conditions?
Best wishes,
Asa
Answered by Boring Money
Hello,
Unfortunately, we don't currently have content on which share trading platforms allow their customers to take up rights issues and corporate events and which platforms don't. We will consider publishing content around this topic in the future, but in the meantime, your best port of call will be to check directly with your chosen platforms to find out what their policy is.
As for your second query, we spoke to a Freetrade spokesperson, who explained that it does allow users to partake in corporate actions as follows:
"Customers will receive notifications for corporate actions via the app (push and in app message) and email. If there is a shareholder vote, they will typically be contacted via email by us with a link to an online form to complete to indicate how they want to vote."
They expanded that voting is facilitated for all shares held within an ISA, but that Freetrade's notification system differs depending on where the share in question is listed:
"If shares are held in an ISA (regardless of listing), we do facilitate voting. US shares have voting completely automated. With some UK-listed or EU-listed shares, it's still a matter of the customer reaching out to us - although we have proactively been reaching out to customers regarding voting."
They note that Freetrade is in the process of finalising an automated solution for UK shares.
Anyone who has a concern or complaint can contact complaints@freetrade.io to speak to a member of their team who can help you further.
We hope you found this helpful!