Freetrade

Freetrade was founded in 2016 by Adam Dodds and Davide Fioranelli.{{cite web |title=FREETRADE LIMITED - Filing history (free information from Companies House) |url=https://find-and-update.company-information.service.gov.uk/company/09797821/filing-history?page=5 |access-date=2021-06-22 |website=find-and-update.company-information.service.gov.uk |language=en}}{{cite web

|url=https://fxnewsgroup.com/forex-news/executives/exclusive-freetrade-co-founder-davide-fioranelli-returns-as-a-non-exec-director/ |title=Exclusive: Freetrade co-founder Davide Fioranelli returns as a Non-Exec Director |last=Segal |first=Gerald |date=2025-01-02 |publisher=FX News Group |access-date=2025-02-25}} In October 2017, the company obtained a license from the Financial Conduct Authority.{{cite web |url=https://www.financemagnates.com/forex/brokers/freetrade-co-founder-were-set-for-european-expansion/ |title=Freetrade Co-Founder: We're Set For European Expansion |last=Kimberley |first=David |date=2019-10-03 |publisher=Financial Magnates |access-date=2025-02-24}} It launched an iOS app in October 2018, followed by an Android version in April 2019.{{cite web |title=Freetrade launches 'zero-fee' investment app |url=https://techcrunch.com/2018/10/02/freetrade/ |author=Steve O'Hear |website=TechCrunch |date=2018-10-02 |access-date=2020-10-15}} A Forbes review described Freetrade's app as "a challenger stock trading app built for the Instagram age," praising its accessibility while criticizing its lack of financial charting tools and the initial absence of US-listed securities.{{cite web |url=https://www.forbes.com/sites/oliversmith/2018/10/03/freetrade-review-a-challenger-stock-trading-app-built-for-the-instagram-age/ |title=Freetrade Review: A Challenger Stock Trading App Built For The Instagram Age |author1=Oliver Smith |website=Forbes |date=2018-10-03 |access-date=2020-10-15}}

In 2019, venture capital firm Molten Ventures participated in Freetrade's $15 million Series A funding round.{{cite web| url=https://www.cityam.com/freetrade-to-close-7m-in-second-crowdfunding-round/| title=Freetrade to close £7m in second crowdfunding round| author=Emily Nicolle| website=City A.M.| date=2019-06-25|access-date=2020-10-15}}{{cite web| title=City startup Freetrade raises $15m from Revolut backer Draper Esprit| url=https://www.cityam.com/city-startup-freetrade-raises-15m-from-revolut-backer-draper-esprit/| author=Emily Nicolle| website=City A.M.| date=2019-10-31|access-date=2020-10-15}}{{cite web| url=https://techcrunch.com/2019/10/31/freetrade-series-a/| title=Freetrade, the UK challenger stockbroker, completes $15M Series A| author=Steve O'Hear| website=TechCrunch| date=2019-10-31|access-date=2020-10-15}}

In 2018, CTO and co-founder André Mohamed departed, while Viktor Nebehaj, an early crowdfunding investor, joined as chief marketing officer.{{Cite web |last=O'Hear |first=Steve |date=2019-01-10 |title=Revolut hires Freetrade co-founder and former CTO as head of Wealth & Trading Product |url=https://techcrunch.com/2019/01/10/revolut-hire-freetrade-co-founder-and-former-cto-as-head-of-wealth-trading-product/ |access-date=2023-03-15 |website=TechCrunch |language=en-US}} Ian Fuller joined as VP of Engineering from Snapchat in 2018 and left in 2021.{{cite web| url=https://www.altfi.com/article/7752_freetrades-long-serving-chief-technology-officer-to-depart| title=Freetrade's long-serving chief technology officer to depart |url-status= dead| archive-url=https://web.archive.org/web/20210330110851/https://www.altfi.com/article/7752_freetrades-long-serving-chief-technology-officer-to-depart |archive-date=2021-03-30 |access-date=2025-02-21}} In July 2023, Freetrade EU head Jordan Sinclair was hired as UK head by Robinhood Markets, Freetrade's principal rival.{{cite web| url =https://fxnewsgroup.com/forex-news/executives/robinhood-hires-freetrade-eu-head-jordan-sinclair-as-new-uk-ceo/| title =Robinhood hires Freetrade EU head Jordan Sinclair as new UK CEO | last =Segal| first =Gerald| date =2023-07-23| publisher = FX News Group| access-date =2025-02-25}}{{cite web| url =https://fxnewsgroup.com/forex-news/retail-forex/freetrade-buys-stake-uk-clients-and-assets/| title =Freetrade buys Stake UK clients and assets| last =Segal| first =Gerald| date =2024-10-01| publisher = FX News Group| access-date =2025-02-25}}

Freetrade experienced significant growth during the COVID-19 pandemic,{{cite web| url =https://www.nbcnewyork.com/news/business/money-report/uk-robinhood-rival-freetrade-snapped-up-by-trading-firm-at-29-valuation-discount/6109708/ | title =UK Robinhood rival Freetrade snapped up by trading firm at 29% valuation discount| last =Browne| first =Ryan| date =2025-01-16| publisher = NBC NY| access-date =2025-02-24}} further benefiting from the GameStop short squeeze in early 2021.{{cite web| url =https://www.cnbc.com/2025/01/16/freetrade-acquired-up-by-ig-group-at-29percent-valuation-discount.html| title =UK Robinhood rival Freetrade snapped up by trading firm at 29% valuation discount| last =Browne| first =Ryan| date =2025-01-16| publisher = CNBC| access-date =2025-02-24}}{{cite web| url =https://www.bbc.com/news/newsbeat-55841719

| title =GameStop: What is it and why is it trending?| last =Grant| first =Kirsty| date =2021-01-28| publisher = BBC| access-date =2025-02-24}}

Freetrade has relied heavily on crowdfunding: between 2017 and 2019, it raised over £10 million from individual investors. A sixth crowdfunding campaign in May 2020 raised an additional £7 million.{{cite web| url =https://www.financemagnates.com/fintech/freetrade-exceeds-1m-crowdfunding-goal-aims-for-7m/| title =Freetrade Exceeds £1m CrowdFunding Goal, Aims for £7m| last =Skinner| first =Celeste| date =2020-05-15| publisher = Financial Magnates| access-date =2025-02-24}}{{cite web | url =https://www.eu-startups.com/2020/05/london-based-freetrade-closes-e7-8-million-crowdfunding-for-its-investing-app/ | title= London-based Freetrade closes €7.8 million crowdfunding for its investing app| last =Tucker| first =Charlotte | date =2020-05-22| publisher = EU Start-ups| access-date =2025-02-24}}

The company's $69 million Series B funding round was announced in March 2021, led by Left Lane Capital, with participation from L Catterton and Molten Ventures.{{cite news |title=Stock trading app Freetrade raises $69 million |url=https://techcrunch.com/2021/03/23/stock-trading-app-freetrade-raises-69-million/ |access-date= 2021-06-22 |work=TechCrunch}} Despite reaching quarterly trading volumes exceeding £1 billion in May 2021,{{cite web |title=Investment platform Freetrade raises £50m as homebound customers fuel revenue surge |url=https://news.sky.com/story/investment-platform-freetrade-raises-50m-as-homebound-customers-fuel-revenue-surge-12253897 |website=Sky News |access-date=23 March 2021}} 1 million registered users by October,{{cite web |title=Freetrade sails past one million customers |url=https://www.altfi.com/article/8427_freetrade-sails-past-one-million-customers |website=AltFi |access-date=2021-10-14}} and £1 billion in assets under administration by November,{{Cite web|title=Freetrade hits £1bn in Assets under Administration|url=https://freetrade.io/blog/freetrade-hits-1bn-in-assets-under-administration|access-date=2021-11-21|website=freetrade.io}} the company reported a net loss of £17.1 million for the year.{{cite web| url =https://fxnewsgroup.com/forex-news/retail-forex/freetrade-posts-15-6m-revenue-39-8m-net-loss-in-fy-2022/| title =Freetrade posts £15.6M Revenue, £39.8M Net Loss in FY 2022| last =Segal | first =Gerald| date =2023-07-07| publisher = FX News Group| access-date =2025-02-25}}

In 2022, Freetrade struggled to attract new investors at a higher valuation.{{cite web |title=Fintech Freetrade struggled to find new backers at hoped-for valuation | url=https://www.ft.com/content/5f6d49cf-a58a-49ab-9eb7-b03692c7d712 | access-date=2022-03-14 |work=FinancialTimes}} As a result, it raised funds through a crowdfunded convertible loan note.{{cite web | url=https://www.finextra.com/newsarticle/40305/freetrade-raises-30-million-through-convertible-loan-note |title=Freetrade raises £30 million through convertible loan note |date= 2022-05-23 |accessdate=2023-03-14}} After securing £30 million via Crowdcube,{{Cite web |last=Smith |first=Oliver |date=2022-06-10 |title=Freetrade announces job cuts of up to 15% of staff |url=https://www.altfi.com/article/9362_exclusive-freetrade-announces-job-cuts-of-up-to-15-of-staff |url-status= dead| archive-url= https://web.archive.org/web/20220610101332/https://www.altfi.com/article/9362_exclusive-freetrade-announces-job-cuts-of-up-to-15-of-staff |archive-date=2022-06-10 |access-date=2023-03-15 |website=AltFi |language=en}} the company's valuation fell 65% to £225 million.{{cite web| url =https://tech.eu/2025/01/16/crowdfunding-investors-in-for-return-as-uk-startup-freetrade-snapped-up-for-ps160m/| title =Early crowdfunding investors bag returns but late investors lose out as Freetrade snapped up for £160M| last =Reynolds| first =John| date =2025-01-16| publisher =Tech EU| access-date =2025-02-24}} The year ended with a net loss of £28.8 million, marking one of the company's worst financial performances.{{cite web| url =https://www.cnbc.com/2024/04/15/freetrade-britains-answer-to-robinhood-hits-breakeven.html| title =Freetrade, Britain's answer to Robinhood, posted its first quarterly profit| last =Browne| first =Ryan| date =2024-04-15| publisher = CNBC| access-date =2025-02-25}}

Initially, Freetrade had plans to expand across Europe, beginning with Sweden, Ireland, and the Netherlands.{{Cite web|date=2020-11-10|title=Freetrade: UK challenger stockbroker launches commission-free investment app in Sweden|url=https://www.uktech.news/news/freetrade-uk-challenger-stockbroker-launches-app-in-sweden-20201110|access-date=2021-08-11|website=UKTN (UK Tech News)|language=en-GB}}{{cite web| url=https://www.ft.com/content/1626c3c8-3d45-11ea-a01a-bae547046735| title=Freetrade stakes claim in Europe's fee-free stock trading markets| author=Madison Darbyshire| website=Financial Times| date=2020-01-23|access-date=2020-10-20}} A pan-European launch was scheduled for early 2023, but by 2024, the company withdrew from the Swedish market, and the planned launches in Ireland and the Netherlands never materialized.{{Cite web |date=2024-08-02 |title=Freetrade pulls out of Swedish market |url=https://www.finextra.com/newsarticle/44536/freetrade-pulls-out-of-swedish-market |access-date=2024-11-08 |website=Finextra Research |language=en}}

In May 2024, CEO and co-founder Adam Dodds announced his resignation, with COO Viktor Nebehaj succeeding him.{{cite web| url =https://www.financemagnates.com/executives/freetrade-ceo-adam-dodds-steps-down-amidst-shifting-market-dynamics/| title =Freetrade CEO Adam Dodds Steps Down amidst Shifting Market Dynamics| last =Sikder| first =Tareq | date =2024-05-13| publisher =Finance Magnates| access-date =2025-02-25}} At the same time, Freetrade reported its first-ever profit, posting a gross profit of £12.3 million and an adjusted operating profit of £91,000 In October 2024, the company acquired the UK client base and assets of Australia-based online broker Stake for an undisclosed sum.{{cite web |url=https://fxnewsgroup.com/forex-news/retail-forex/freetrade-buys-stake-uk-clients-and-assets/ |title=Freetrade buys Stake UK clients and assets |last=Segal |first=Gerald |date=2024-10-01 |publisher=FX News Group |access-date=2025-02-25}} At the end of 2024, Freetrade reported a 32% year-over-year revenue increase, reaching £27.5 million. By the end of 2024, the company had onboarded 720,000 customers with assets under administration of £2.5 billion.

In January 2025, Freetrade was acquired by IG Group for £160 million in a cash deal, representing a 29% discount from its previous fundraising valuation (£225 million). This sale price contrasted with the company's peak valuation of around £650 million in late 2021.{{cite web| url =https://www.financemagnates.com/forex/ig-deal-cuts-freetrades-valuation-by-over-a-quarter-shareholders-backlash/| title= IG Deal Cuts Freetrade's Valuation By Over a Quarter: Shareholders Backlash| last =Shome| first =Arnab| date =2025-01-17| publisher =Financial Magnates| access-date =2025-02-24}} Regulatory approvals are expected by mid-2025.{{cite web| url =https://www.financemagnates.com/forex/breaking-ig-acquires-freetrade-for-160-million/| title =Breaking: IG Acquires Freetrade for £160 Million| last =Shome| first =Arnab| date =2025-01-16| publisher =Finance Magnates| access-date =2025-02-24}} The company said that it would continue to operate as a commercially standalone entity under its own brand.{{cite web| url =https://www.nbcdfw.com/news/business/money-report/uk-robinhood-rival-freetrade-snapped-up-by-trading-firm-at-29-valuation-discount/3742751/ | title = UK Robinhood rival Freetrade snapped up by trading firm at 29% valuation discount| last = Browne| first = Ryan| date =2025-01-16| publisher =NBC DFW | access-date =2025-02-24}} Six months prior to the acquisition, in mid-2024, Freetrade's CEO Viktor Nebehaj stated to Sky News: "Right now, Freetrade is in its strongest financial position in its history," highlighting optimism about the company's future prospects. However, Sky News later revealed that as early as 2022, Freetrade had engaged in preliminary discussions with investment bank JP Morgan about a potential sale, though these discussions ultimately did not result in an agreement.{{cite web| url = https://news.sky.com/story/freetrade-faces-investor-backlash-over-160m-ig-group-sale-13290151 | title = Freetrade faces investor backlash over £160m IG Group sale| last = Kleinman | first = Mark| date =2025-01-16| publisher = Sky News | access-date =2025-02-24}} Early investors criticized the deal, accusing the management of ignoring smaller investors who had significantly supported the company's growth through crowdfunding. Viktor Nebehaj, Freetrade's CEO, acknowledged that Series B investors incurred losses from the sale{{cite web| url =https://www.financemagnates.com/forex/ig-deal-cuts-freetrades-valuation-by-over-a-quarter-shareholders-backlash/ | title =IG Deal Cuts Freetrade's Valuation By Over a Quarter: Shareholders Backlash| last =Shome | first =Arnab| date =2025-01-17| publisher =Finance Magnates| access-date =2025-02-24}} while, as one user noted, he "coincidentally became a millionaire in the process."{{cite web| url = https://www.globalfinancesdaily.com/backlash-against-freetrade-deal-intensifies-as-chief-executive-posts-on-investor-forum/ | title = Backlash against Freetrade deal intensifies as chief executive posts on investor forum| last =Dorset| first =Harvey| date =2025-01-17| publisher = Global Finances Daily| access-date =2025-02-25}}

Freetrade offers a trading app available on Android and iOS, open to users in the United Kingdom. The platform allows users to trade equities and ETFs listed in the UK and the United States. For US securities, users can hold and trade fractional shares. Portfolios can be held in tax-free ISA or SIPP (personal pension) accounts for a fixed monthly fee. In October 2020, Freetrade introduced its premium service, Freetrade Plus, which expanded the list of available securities and order types.{{cite web| url=https://www.altfi.com/article/7137_freetrade-launches-its-long-awaited-plus-subscription-with-stop-losses-limit-orders-and-more| title=Freetrade launches its long-awaited Plus subscription with stop losses, limit orders and more| author=Oliver Smith| website=AltFi| date=2020-10-07 |url-status= dead| archive-url= https://web.archive.org/web/20201119143825/https://www.altfi.com/article/7137_freetrade-launches-its-long-awaited-plus-subscription-with-stop-losses-limit-orders-and-more |archive-date=2020-11-19 |access-date=2020-10-30}} The platform's backend operates on a serverless computing model hosted by Google Cloud Platform.{{cite web |url=https://www.computerweekly.com/news/252481938/UK-challenger-stockbroker-Freetrade-backs-Google-Cloud-to-make-investing-more-inclusive |title=UK challenger stockbroker Freetrade backs Google Cloud to make investing more inclusive |author1=Caroline Donnelly |website=Computer Weekly |date=2020-04-21 |access-date=2020-10-15}}

Freetrade primarily generates revenue through monthly subscription fees for Individual Savings Accounts (ISA), Self-Invested Personal Pension plans (SIPP), and its premium subscription service, Freetrade Plus. Although general investment accounts have no direct trading commissions, users are charged currency exchange spreads when trading non-UK securities, such as US stocks. This subscription-based model, combined with indirect costs like foreign exchange fees, has prompted criticism that the company's advertising as a "zero-fee" platform may not accurately reflect users' actual investment costs.

In January 2020, Freetrade faced allegations of fostering a toxic workplace culture following an investigation by City A.M. into employee complaints. Reports indicated that between 2018 and 2019, the company had a 50% staff turnover rate, with the entire design team resigning at one point.{{Cite web| date=2020-01-29| title=Investigation: City fintech Freetrade accused of deliberately fostering 'culture of fear'| url=https://www.cityam.com/investigation-city-fintech-freetrade-accused-of-deliberately-fostering-culture-of-fear/| access-date=2020-08-04| author=Emily Nicolle| website=City A.M.| language=en-GB}}{{cite web| url =https://www.fintechfutures.com/2020/09/why-do-some-fintech-start-ups-experience-high-exec-churn-rates/| title =Why do some fintech start-ups experience high exec churn rates?| last =Hinchliffe| first =Ruby| date =2020-09-29| publisher =Fintech Futures| access-date =2025-02-25}} Former employees described being pressured into excessive workloads and cited dysfunctional management, abusive communication, and a lack of recognition for good performance.{{cite web| url =https://www.fintechfutures.com/2020/01/uk-fintech-freetrade-hit-by-claims-of-toxic-workplace-culture/| title =UK fintech Freetrade hit by claims of toxic workplace culture | last =Hinchliffe| first =Ruby| date =2020-01-30| publisher = Fintech Futures| access-date =2025-02-25}}

Freetrade was warned by the UK Financial Conduct Authority (FCA) regarding misleading financial promotions. In March 2020, the regulator identified non-compliant promotional materials and demanded a review of the company's advertising practices. The FCA found that Freetrade's advertisements failed to provide "a fair and prominent indication of any relevant risks when referencing potential benefits." Despite acknowledging the issue and implementing corrective measures, the company received a supervisory notice in March 2021, requiring the removal of all paid sponsored influencer advertisements on social media platforms. The FCA emphasized that the ads were misleading, as they implied guaranteed positive returns on investments, posing a risk to financially vulnerable individuals. The company failed to resolve the issue and received a second supervisory notice in January 2022.{{cite web| url =https://www.fca.org.uk/publication/supervisory-notices/second-supervisory-notice-freetrade-ltd.pdf| title =Second Supervisory Notice| date =2022-02-08| publisher = Financial Conduct Authority UK| access-date =2025-02-25}}{{cite web| url =https://www.financemagnates.com/forex/brokers/fca-orders-freetrade-to-pull-down-misleading-social-media-promotions/| title =FCA Orders Freetrade to Pull Down 'Misleading' Social Media Promotions| last =Shome| first =Arnab| date =2022-02-10| publisher =Finance Magnates| access-date =2025-02-25}} In February 2022, the FCA took further action, ordering Freetrade to remove all sponsored influencer posts within 24 hours following another misleading promotion involving a social media influencer who claimed to have cleared £14,000 of debt in 18 weeks without clearly disclosing investment risks. The FCA expressed concern about the vulnerability of the influencer's 64,000 followers, highlighting that consumers already in debt could be misled into believing they could reduce their debts through similar investment actions. This was the third warning from the FCA regarding the company's advertising practices.{{cite web|url=https://www.trustnet.com/news/13291719/three-strikes-fca-forces-freetrade-to-remove-influencer-posts-after-rules-breach|title=Three strikes: FCA forces Freetrade to remove influencer posts after rules breach|author=Tom Aylott|date=2022-02-10|publisher=Trustnet|access-date=2025-03-03}}

In 2023, Freetrade faced criticism after it emerged that some of its customers could face unexpected tax liabilities due to the platform allowing the purchase of fractional shares in popular US companies within Individual Savings Accounts (ISAs). According to UK tax regulations, fractional shares are not eligible to be held within ISAs, potentially leaving investors exposed to tax on gains that they assumed were sheltered within tax-free accounts.{{cite web |url=https://www.telegraph.co.uk/money/investing/isas/freetrade-isa-investors-fractional-shares-tax-bill/ |title=Freetrade ISA investors face tax bills after buying fractional shares |publisher=The Telegraph |date=2023-05-24 |access-date=2025-03-03}}

• British Bank Awards 2021 – Best Online Trading Platform{{cite web |title=British Bank Awards 2021 Winners |url=https://smartmoneypeople.com/news/post/british-bank-awards-2021-winners |website=Smart Money People |access-date=13 July 2021}}
• Good Money Guide 2021 – Best Commission-Free Stockbroker{{cite web|last=|first=|date=|title=Good Money Guide Awards – The 2021 Winners|url=https://goodmoneyguide.com/awards/|url-status=dead|archive-url=https://web.archive.org/web/20210808083050/https://goodmoneyguide.com/awards/|archive-date=8 August 2021|website=Good Money Guide|via=Internet Archive}}
• British Bank Awards 2020 – Best Online Trading Platform{{cite web |title=2020 Winners |url=http://www.britishbankawards.co.uk/previous-winners/ |website=British Bank Awards |access-date=10 August 2020}}
• British Bank Awards 2019 – Best Share Trading Platform{{cite web |title=British Bank Awards see Starling, Monzo, Zopa, Freetrade, Chip and Bud take home gold| author=Oliver Smith| url=https://www.altfi.com/article/5138_british-bank-awards-starling-monzo-zopa-freetrade-chip-bud-gold |website=AltFi |date=2019-03-08|access-date=2020-10-30}}
• Good Money Guide 2019 – People's Choice{{cite web |title=Best Providers: 2019 Award Winners Announced |url=https://goodmoneyguide.com/2019-awards-winners/| website=Good Money Guide| author=Richard Berry| date=2019-05-10|access-date=2020-10-30}}

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Category:British companies established in 2016

Category:Financial services companies established in 2016

Category:Financial services companies of the United Kingdom

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Category:Companies based in London