- Freetrade Ltd is a UK based fin-technology company which offers a commission-free share dealing service.
- Freetrade launched zero-commission instant orders available through the app in February.
- In 2019, the startup completed a $15m Series A funding round led by Draper Esprit.
Freetrade was founded by CEO Adam Dodds and Davide Fioranelli in 2015. The founders established Freetrade’s brokerage, obtaining a full broker license from the FCA and without partnering with an already established broker. The challenger stockbroker pioneered commission-free investing in the UK, aiming to make investing accessible to everyone. The startup also prioritised breaking down the technical jargon and complexities that pose problems and deter the everyday consumer. CEO and founder of Adam Dodds, also promotes outreach to millennial customers, educating them on how to invest in a simpler and less costly way. The Freetrade platform launched on iOS in October 2018 and on Android in April 2019.
How Does it Work?
Freetrade’s mobile app allows users to quickly and conveniently invest in stocks and ETFs with no charges or exit fees. The freemium pricing model only requires users to pay for extra features such as same-day bank transfers which cost £5.
To invest with Freetrade, users need a basic account or a Stocks and Shares and must provide their National Insurance number. It costs £3 a month to open a Stocks and Shares ISA instead of a basic account. With a Stocks and Shares ISA, customers can invest up to £20,000 every year without paying tax on any dividends or Capital Gains Tax. Those who already have an ISA can transfer it over to Freetrade for free. With a basic account, users must pay CGT on any capital gains over £12,000, as well as a tax on dividends of over £2,000.
Additionally, as of 28th February 2020, zero-commission instant orders are available through the platform. The company states: “Invest by Freetrade is immediately giving our customer community a faster and smoother app, real-time deposits with Apple and Google Pay, and most importantly, a solid foundation to roll out new features at a rapid pace.”
In 2019, Freetrade closed $15 million in Series A funding. Draper Esprit led the round, investing $7.5 million. Previously, Freetrade investment crashed Crowdcube funding site with its huge demand. Last year, Freetrade also achieved many commendations including British Bank Awards’ ‘Best Share Trading Platform’, Good Money Guide’s ‘People’s Choice’ and Consumer Investment Awards’ ‘Best New Investment Service’. As of February 2020, the company has more than 100,000 clients.
The Freetrade team, London.
Plans for growth
Freetrade plans to launch fractional shares and continue to add more stocks to the Freetrade app this year. Looking further ahead, Freetrade is planning to launch a subscription service that will become the startup’s key source of revenue. The company will continue to work towards its ultimate goal of providing a world-class investment service that empowers people lacking knowledge and experience in stocks and shares to start investing and earn better returns on their savings.
For more information, visit https://freetrade.io/