IG Group Acquires Freetrade: A New Era in Online Trading

What happens when a company founded on the promise of democratizing investing steps away from the driver’s seat and chooses to cash out?

FreeTrade’s journey—from bold inception to transformative exit—isn’t just a tale of financial success. It’s a narrative of disruption, innovation, and the emotional complexities that accompany monumental change. More than a trading platform, FreeTrade became a movement, empowering everyday investors to break free from the barriers that had long excluded them from wealth-building opportunities, all leading to a pivotal moment when IG Group acquires Freetrade, marking a significant shift in the industry’s landscape.

“We wanted to create something that allowed everyone, not just the elite, to take control of their financial future,” reflected Adam Dodds, co-founder and former CEO of FreeTrade. His words capture the vision that turned a fledgling startup into a trailblazer, transforming the company into a cornerstone of commission-free investing and a symbol of accessibility in finance.

But as the ink dries on its exit, an inevitable question arises: does this corporate consolidation compromise the ideals that made FreeTrade a beacon for retail investors, or could it represent a bold new chapter, amplifying its mission to unprecedented heights?

FreeTrade: From Frustration to Revolutionizing Investing

Adam Dodds, a seasoned corporate finance professional at KPMG, had always been baffled by the convoluted process of opening an investment account in the UK. The layers of paperwork, the opaque fees, and the slow, bureaucratic systems created a wall between everyday people and the world of investing, making it feel like a club only for the wealthy. This frustration, deepened by his firsthand experience auditing stockbrokers, was the spark that ignited a powerful idea. Dodds realized there had to be a simpler, more transparent way for anyone—regardless of background—to take control of their financial future. And so, FreeTrade was born, with the mission to level the playing field and make investing accessible to all.

To bring this vision to life, he teamed up with Davide Fioranelli and Viktor Nebehaj. Fioranelli, with his expertise in seed-stage investments and deep academic background in finance, was instrumental in shaping FreeTrade’s strategic direction. Nebehaj, who had previously joined the company as an early crowdfunding investor, brought his experience in growth and marketing, playing a pivotal role in scaling the platform. The trio’s combined expertise and shared commitment to democratizing finance set the stage for FreeTrade’s transformative journey in 2016.

It quickly found footing, launching the iOS app in 2018 and an Android version in 2019. Its commission-free, user-friendly model resonated with both seasoned investors and beginners alike. By 2020, the platform had surpassed 100,000 users, validating the demand for a more inclusive, accessible approach to investing.

The company’s rapid growth attracted significant funding, including a $15 million Series A round in 2019, followed by a $69 million Series B round in 2021. These investments fueled FreeTrade’s expansion and enabled it to enhance its offerings.Today, it has amassed 720,000 users and £2.5 billion in assets under management. The company has demonstrated exceptional growth momentum. In 2024 alone, net flows were equivalent to 22% of starting AUA and the platform’s revenue grew by 32% year-on-year to £27.5 million, marking its first profitable year with an operating profit of £91,000.

FreeTrade’s Evolution: IG Group Acquires Freetrade, Marking a New Era

In a pivotal move, IG Group Holdings plc (“IG”) has announced its acquisition of FreeTrade for £160 million through existing capital resources, marking a significant milestone in the company’s evolution. The acquisition is expected to deliver a return on invested capital exceeding IG’s weighted average cost of capital within three to five years.This strategic move will strengthen the company’s UK trading and investment offerings, unlock access to new customer segments, and enhance its technological capabilities. The transaction is expected to be finalized by mid-2025, subject to regulatory approvals.

Source: Freetrade

Breon Corcoran, CEO of IG, emphasized the transformative potential of this acquisition: “This is a rare opportunity to strengthen IG’s UK trading and investments offering and broaden our target addressable market. Freetrade is one of the most successful emerging players in the UK direct-to-customer investment market, with a strong brand, highly scalable technology, and delivering rapid growth. I am delighted that Viktor and his team will join IG and continue to lead Freetrade.”

Echoing this sentiment, Viktor Nebehaj, CEO and co-founder of Freetrade, stated, “This is an exciting opportunity to accelerate our growth and delivery of new products and features on our award-winning platform. IG’s vision for Freetrade is closely aligned with our own, and its backing will be of huge benefit as we continue to scale the business.”

The Road Ahead

Under IG’s ownership, Freetrade will operate as a standalone business with its existing brand and leadership team intact. Viktor Nebehaj and his team will continue to drive the company’s mission to democratize stock market access, introducing new features, expanding the product range, and increasing marketing efforts to scale the business further. Furthermore, Freetrade’s culture—marked by a relaxed, hybrid working environment and a startup mindset—has been instrumental in attracting top talent. This ethos will remain central as the company navigates its next growth phase. By leveraging IG’s resources and strategic vision, it aims to reinforce its market position and deliver enhanced value to its customers. 

The acquisition of Freetrade marks a significant milestone for IG Group as well, enabling the company to capitalize on the booming self-directed investment market in the UK. With shared values and a commitment to innovation, the partnership promises to redefine trading and investment experiences for a broader audience. As Freetrade embarks on this exciting new chapter, its mission to make investing accessible to all remains unwavering.