Frec Review Features, Pricing, Pros & Cons

What Is Frec?

Frec is an SEC-registered investment platform that makes direct indexing accessible to individual investors. Instead of doing what most people do, and buying a single ETF, Frec enables you to directly own the underlying stocks of an index (like the S&P 500). This enables automated tax-loss harvesting, sector or stock customizations, and even the ability to borrow against your portfolio.

Think of it as a hybrid between Wealthfront (automation + tax efficiency) and Robinhood (flexible brokerage), but with a focus on low-fee direct indexing (starting at 0.09%).

Our Experience With Frec

We've been testing Frec to see how flexible their direct indexing really is. While they don't publicly offer discounts beyond their baseline pricing, we found a clever way to keep costs low. Instead of paying the higher 0.19% fee for Frec’s S&P 500® Information Technology index, we started with their lowest-fee S&P 500 index (0.09%) and customized it.

You can verify Frec's base pricing here:

“Low-cost direct indexing … starting at 0.09 %”

The customization options let us exclude up to two sectors and add or remove up to ten stocks. Using that, we built a portfolio that tilts about 2x heavier into tech while trimming back Financials. It's not identical to QQQM, but it gets closer to the tech-heavy makeup—and we're still only paying the 0.09% fee. On top of that, tax-loss harvesting runs automatically in the background, which is a big advantage over simply holding QQQM (0.15%).

Using that approach, we've attempted a 2x tilt toward IT, with reduced Financials weight, and added specific tech stocks. It's not QQQM, but it moves closer, all at the 0.09% fee, with tax-loss harvesting enabled (vs. QQQM's 0.15%).

And see Frec's customization rules here:

“adjust the weights of up to two financial sectors … add/exclude up to 10 stocks”

➡️ Bonus: Through our partner Frec link, Frec currently offers $250 after you invest in any of their direct indices.

^{Disclaimer: This is not investment advice. Investing and direct indexing involve risks (including tracking error, model risk, and possible loss of principal). Borrowing on margin can increase those risks. Referral bonuses create a conflict of interest, as we may receive compensation if you sign up. Always do your own research or consult a licensed financial professional.}