Frec: Platform Profile

Overview

Frec is a tax-focused investing platform built around direct indexing.

Its current product suite includes:

• classic long-only direct indexing;
• long-short direct indexing;
• concentrated-stock diversification strategies;
• Treasury management;
• self-managed brokerage holdings;
• a portfolio line of credit;
• automated tax-loss harvesting.

Frec combines an SEC-registered investment adviser with an affiliated FINRA/SIPC broker-dealer.

The lowest current direct-indexing fee is:

• S&P_500_direct_indexing: 0.09% annually
• Minimum: $20,000

That is materially below the 1% wealth-management fee often associated with personalized tax-managed portfolios.

It is not the full cost of every Frec strategy.

May fit better for

• taxable investors with substantial embedded gains elsewhere;
• investors who want direct ownership of index constituents;
• investors who value tax-loss harvesting;
• concentrated-stock holders who want gradual diversification;
• investors who want lower-fee direct indexing;
• users willing to maintain a $20,000+ strategy minimum.

May fit less well for

• small investors;
• tax-advantaged accounts where tax-loss harvesting has little or no value;
• investors who want a simple ETF and no added complexity;
• investors uncomfortable with tracking error;
• users who do not want hundreds of tax lots;
• investors considering leveraged long-short strategies without understanding financing and margin risks.

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Legal structure

Current Frec Form CRS:

• Investment adviser:
• Entity: Frec Advisers LLC
• CRD: 325982
• SEC number: 801-127783
• SEC registered: Yes
• Broker dealer:
• Entity: Frec Securities LLC
• CRD: 316641
• FINRA member: Yes
• SIPC member: Yes
• Parent brand: Frec Markets, Inc.

Current disclosures state that Frec refers to Frec Markets and its wholly owned adviser and broker-dealer subsidiaries.

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Apex custody

Current Frec pages state:

• Clearing custodian: Apex Clearing Corporation
• Customer assets held in customer name: Yes

Frec Securities' order-routing reporting also identifies Apex.

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Classic direct indexing pricing

Current 2026 pricing page:

• Classic:
• Annual fee range: 0.09%–0.35%
• Minimum range: $20,000–$50,000

The specific fee depends on index/strategy.

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S&P 500 direct index

Current product page:

• S&P_500:
• Minimum: $20,000
• Annual fee: 0.09%

The portfolio holds individual stocks intended to track the index.

That can create:

• tracking error;
• hundreds of tax lots;
• wash-sale complexity;
• realized gains;
• transaction timing differences.

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S&P 500 fee example

A constant $100,000 balance at 0.09%:

$100,000 × 0.09% = $90

simple annual platform-fee reference.

This does not include taxes, financing costs, or other strategy-specific expenses.

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Classic fee range matters

Current classic direct-index menu includes strategies with fees materially above 0.09%.

Current broad published range:

• Classic high end: 0.35%

A $100,000 balance at 0.35%:

$350

simple annual fee.

The selected index matters.

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Long-short direct indexing

Current pricing:

• Long Short:
• Annual fee range: 0.50%–1.30%
• Post tax financing cost: 0.23%–0.86%
• Minimum range: $100,000–$500,000

The current page also provides pre-tax financing-cost references for certain leverage levels.

Financing is part of the economics.

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Long-short leverage examples

Current Frec materials include structures such as:

• 140/40;
• 200/100;
• 250/150.

Leverage can amplify:

• gains;
• losses;
• turnover;
• borrowing costs;
• tax-loss harvesting;
• margin risk.

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Diversify strategies

Current pricing:

• Diversify:
• Annual fee range: 0.60%–1.10%
• Post tax financing cost: 0.23%–0.57%
• Minimum range: $100,000–$500,000

The product is intended to help reduce concentrated-stock risk while limiting immediate tax realization.

It does not eliminate tax liability.

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Tax-loss harvesting

Frec automates tax-loss harvesting in eligible taxable strategies.

The economic value depends on:

• realized gains elsewhere;
• current and future tax rates;
• holding period;
• wash sales;
• eventual portfolio liquidation;
• charitable giving;
• death/step-up rules;
• state taxes.

tax losses harvested

with:

cash permanently saved.

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Historical simulations

Frec publishes historical simulated loss-harvesting results.

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Treasury

Current fee schedule:

• Treasury:
• Annual fee: 0.20%
• Displayed rate: net of Frec fee under current disclosure

Treasury yield varies with market rates.

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Self-managed brokerage

Current fee schedule:

• Self managed:
• Securities transaction commission: $0
• Mutual fund buy sell: $20 per trade

Frec is therefore not solely a managed-account interface.

It also has brokerage functionality.

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Portfolio line of credit

Current fee schedule:

• Portfolio line of credit:
• Interest rate: Effective Federal Funds Rate + 1%

The benchmark changes.

Borrowing against a portfolio can create liquidation risk.

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Long-short financing

Current fee schedule separately disclosures show:

• Long short financing cost: approximately 0.50% in older August 2025 schedule

The current 2026 pricing page provides broader strategy-specific financing ranges.

Use the current strategy page for current range and retain the older fee schedule only as a documented dated source.

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Other transaction/service fees

Current August 2025 fee schedule lists:

• Securities commission: $0
• Rights warrants tender offer exercise: $50

Other operational fees can apply.

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Account minimum is strategy-specific

"Frec has a universal $20,000 minimum."

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Protection

Frec Securities is a SIPC member.

Current Frec materials state customer assets are held through Apex.

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IRA

Frec's tax-loss-harvesting value proposition is primarily taxable-account oriented.

This Batch 18 package does not establish a conventional IRA product.

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Options, futures, direct crypto

Current package does not establish:

• Options current verified: No
• Futures current verified: No
• Direct spot crypto current verified: No

Assessment

Frec's strongest current claim is not that it makes direct indexing possible.

Large wealth managers have offered direct indexing for years.

Its distinction is price and accessibility.

The current S&P 500 strategy starts at:

• $20,000;
• 0.09% annually.

That can make tax-managed direct indexing economically plausible for investors far below traditional private-wealth minimums.

The tradeoff is complexity.

Direct indexing creates more positions, more tax lots, tracking differences, and more dependence on tax circumstances.

Long-short strategies add another layer of:

• leverage;
• financing;
• market risk;
• tax complexity.

The most important legal distinction is:

Frec Advisers manages the advisory strategies; Frec Securities is the broker-dealer; Apex holds customer assets.