Freetrade is a UK fintech offering a consumer investing app that began commission-free investing in 2019 and runs a customer-centric subscription business on a proprietary technology stack. Since launching in 2019 it has added 1.6m+ lifetime registered users and reports £1.4bn in client assets. The product is live in Sweden and the firm holds EEA-wide authorisation; it plans to double down on UK customer growth, expand in Europe, and launch more products and features such as mutual funds and tax reporting. The company has shipped features including Autopilot, proxy voting and annual subscriptions. Financially, it reported its highest-ever quarterly revenue in Q1’23 of £4.7m with an EBITDA loss of -£3.85m, and CY’22 revenue of £14.9m with an EBITDA loss of -£28.7m. Management says it is focused on a path to profitability and recently lowered its pre-money valuation to £225,000,000 with a £2.60 share price ahead of this raise. Freetrade is a mobile-first, commission-free stockbroker that offers investing through its app and its proprietary execution system “Invest by Freetrade.” The company is FCA-regulated and a member of the London Stock Exchange. It has grown to over 1 million registered users and client assets in excess of £1 billion, and has nearly 13,000 shareholders via crowdfunding. Freetrade has launched subscription and tax-advantaged products including ISAs, a Plus membership, and a pension. The company is expanding internationally (Netherlands, Ireland and plans for the wider EEA) and plans to use new funding to support that expansion and further develop its proprietary technology. Freetrade operates a mobile stock trading app that lets users buy and sell U.K. and U.S. stocks and ETFs, including fractional shares for expensive listings. The app charges no commission for basic orders, applies a 0.45% foreign exchange fee on FX transactions, and offers paid products including ISAs (£3/month), SIPPs (£9.99/month) and Freetrade Plus (£9.99/month). Freetrade Plus includes benefits such as 3% interest on cash up to £4,000, additional stocks, and extra order types (limit and stop loss), plus a free ISA and a SIPP discount. The company follows a freemium model that leans on subscription revenue from engaged users while casual users remain on free accounts. As of the article, Freetrade had 600,000 U.K. users, generated £1 billion in quarterly trade volume, and reported $1.4 million in revenue in December 2020. The company plans to expand beyond the U.K., starting with a launch in France offering 5,000 stocks and ETFs and support for France’s PEA at €3 per month. Freetrade offers a mobile-first, commission-free app that lets users buy individual stocks and invest via ISAs (up to around €18,000/year). The company has built up 150,000 customers and grown its team to about 60 people, reporting 500% customer growth in the past year. It has run six Crowdcube crowdfunding campaigns and now has over 10,000 shareholders. In 2019 Freetrade raised €13.7 million, including a Series A via Draper Esprit. The recent equity crowdfunding raise will be used to accelerate the platform’s growth and user acquisition across the UK and Europe. Freetrade operates a mobile app that lets users buy stocks and ETFs with a fee-free model when trades execute at the close of business, and a low £1 fee for immediate execution. The company built its own brokerage and holds a full FCA broker license rather than white‑labeling via a partner. It claims more than 50,000 customers and competes with entrants such as Robinhood, Bux and Revolut. Near-term product plans include a new investment platform to offer U.K. and European fractional shares (not just U.S. fractional shares). Freetrade says it will focus on engineering hires and a marketing/content push to reach millennial customers and educate the market. The firm intends to expand into Europe next year.

Total raised

$107M

Funding rounds

6

Latest round

Equity

Latest activity

Jun 2023