Freetrade: 10 Key Things You Must Know

Overview

Freetrade is an innovative fintech company, making waves in the financial technology world with its commission-free trading platform. Founded in 2016, it enables individuals to trade stocks and exchange-traded funds (ETFs) without the traditional fees associated with such activities. As a mobile-first platform, Freetrade has catered largely to novice investors, making it an attractive choice for its simplicity and convenience. Recently, Freetrade made headlines when it was acquired by IG Group, setting the stage for an exciting new chapter. This article explores ten key aspects of Freetrade and its path within the evolving fintech landscape.

1. Formation and Growth

Freetrade was founded in 2016 by Adam Dodds, Davide Fioranelli, and André Mohamed. It quickly positioned itself against established players with its disruptive commission-free model. The company has gained significant attention, amassing a user base of 720,000 and managing assets worth £2.5 billion by the end of 2024. The firm's ability to provide access to over 6,200 stocks and ETFs showcased its broad appeal and effective growth strategy.

2. Business Model

Freetrade's business model revolves around providing commission-free trading services. It generates revenue through subscription fees, foreign exchange transaction fees, and interest income on uninvested cash. The platform’s user-friendly design and transparent pricing were key factors in attracting and retaining customers, helping it grow steadily in a competitive market.

3. Recent Acquisition

In January 2025, Freetrade was acquired by the FTSE 250-listed IG Group for £160 million. This acquisition represents an opportunity for both companies to leverage each other's strengths. With Freetrade's robust customer base and IG Group's resources, the partnership is poised to influence the UK trading landscape significantly.

4. Market Positioning

Often dubbed the “Robinhood of Europe,” Freetrade was one of the few fintech platforms in the UK providing commission-free trades. Its competitors include established platforms like Hargreaves Lansdown and AJ Bell. Freetrade's focus on a seamless and intuitive mobile experience helped it capture a younger demographic keen on managing finances via technology.

5. User Demographics

Freetrade's primary user demographic includes millennials and novice investors. These users are attracted by the accessibility and simplicity of the platform. By offering fractional shares, Freetrade allows users to invest in high-value stocks with limited capital, further enhancing its appeal to younger investors navigating personal finance for the first time.

6. Financial Health and Performance

Despite certain financial challenges and accumulated losses over the years, 2024 marked a turning point for Freetrade with significant growth in revenue, reaching £27.5 million. The company's adjusted EBITDA for 2024 was £2.1 million, indicating its potential path to sustainable profitability under the right strategic guidance.

7. Impact of Acquisition

The acquisition by IG Group means Freetrade will operate as a standalone brand with its unique identity intact. It promises accelerated growth through enhanced resources and scalability, with plans to reinvest in product expansion and marketing efforts. The leadership team, under the guidance of CEO Viktor Nebehaj, continues to steer Freetrade's strategic direction.

8. Crowdfunding Success

Freetrade's growth trajectory has been financially backed by several successful crowdfunding campaigns. The platform raised nearly £35 million via Crowdcube, with early backers seeing substantial returns upon the acquisition by IG Group. This fundraising strategy helped Freetrade maintain autonomy and focus on long-term goals without traditional venture capital constraints.

9. Technological Advantage

One of Freetrade’s standout attributes is its technology-driven approach. The platform offers a simple, efficient, and transparent interface that demystifies trading for its users. Its proprietary technology and commitment to user experience have been major differentiators in a crowded marketplace.

10. Challenges and Future Prospects

While Freetrade's model has proven successful, it faces challenges like intense market competition and the need for continuous innovation. Post-acquisition, the focus will likely be on integrating IG Group's capabilities while preserving its agility. The roadmap promises new features and market entries, hinting at a vibrant future for the brand.

Conclusion

Freetrade has carved out a notable position within the UK fintech scene with its pioneering commission-free trading platform. The company's journey, marked by significant achievements and a promising acquisition, underscores its impact on democratizing access to financial markets. As Freetrade embarks on its next chapter with IG Group, the industry will keenly watch its strides towards expansion and innovation. One may wonder how this partnership will redefine trading in the years to come.