Freetrade Acquired by IG Group: What it Means for the Future of Investing

LONDON — Freetrade, a popular stock trading app in the U.K., has been acquired by online investing platform IG Group in a deal worth £160 million. Despite a 29% discount to its last valuation, Freetrade will continue to operate independently under its own brand.

The Rise of Freetrade

Founded in 2016, Freetrade gained traction among younger traders with its zero-commission trading platform. Initially focused on equities, the app later expanded to include trading in ETFs, savings products, and government bonds.

During the GameStop “short squeeze” in early 2021, Freetrade saw a surge in usage as retail investors flocked to the platform. However, challenges in 2022 and 2023 led to a crowdfunding round in which Freetrade’s valuation dropped to £225 million.

What the Acquisition Means

The acquisition of Freetrade by IG Group signals a potential trend of consolidation in the wealth technology industry. CEO Viktor Nebehaj sees the deal as an opportunity to accelerate growth and introduce new products and features with the backing of IG Group’s resources.

While the transaction is pending regulatory approvals, Freetrade expects the deal to close later this year. This acquisition could reshape the landscape of online investing and pave the way for future innovation in the industry.

FAQs

What will happen to Freetrade after the acquisition? Freetrade will continue to operate independently under its own brand following the acquisition by IG Group.

How will the acquisition impact online investing? The acquisition of Freetrade by IG Group could lead to further consolidation in the wealth technology sector and drive innovation in the industry.

When is the deal expected to close? Freetrade anticipates that the acquisition by IG Group will be finalized later this year, pending regulatory approvals.