Freetrade

Freetrade is a London-based investment app that let UK customers buy and sell stocks and exchange-traded funds, including fractional shares of US companies, without paying a dealing commission on most trades. Founded in 2016 by Adam Dodds, Davide Fioranelli and André Mohamed, Freetrade grew through a series of high-profile equity crowdfunding campaigns before being acquired by trading firm IG Group in 2025 at a steep discount to its earlier private valuation.

How Freetrade made money without trading commissions

Rather than charging a fee on every trade, Freetrade generated revenue mainly through foreign-exchange fees on trades in non-British-pound currencies, interest earned on customer cash balances, and optional paid subscription tiers that unlocked additional account types and features, such as ISA (individual savings account) and SIPP (self-invested personal pension) tax-advantaged accounts. This commission-free model, borrowed from US apps like Robinhood, helped Freetrade attract a large base of younger, first-time investors in the UK.

Freetrade’s crowdfunding-driven growth

Freetrade became known in the UK fintech scene for repeatedly raising money directly from its own customers through equity crowdfunding campaigns, including more than £10 million raised across rounds between 2017 and 2019 and a further £7 million raised in a single May 2020 campaign, in addition to conventional venture funding such as a 2019 Series A and a $69 million Series B announced in March 2021 led by Left Lane Capital.

A sharp decline in valuation

After reaching a peak private valuation of roughly £650 million in late 2021, amid a broader boom in fintech valuations, Freetrade’s value fell sharply as market conditions cooled: a 2023 crowdfunding round priced the company at £225 million, a 65% cut from its 2021 peak. Freetrade raised a further £30 million through a Crowdcube convertible loan note in May 2022 as it worked to extend its funding runway between larger rounds.

The IG Group acquisition

IG Group agreed to acquire Freetrade in January 2025 for £160 million in cash, a price roughly 29% below Freetrade’s already-reduced 2023 valuation of £225 million, and the deal completed on April 1, 2025. Some of Freetrade’s own crowdfunding investors publicly criticized the acquisition price, having bought shares at valuations well above the final sale price.

What the Freetrade story shows about fintech valuations

Freetrade’s trajectory, from a roughly £650 million peak valuation in 2021 to a £160 million acquisition price in 2025, closely tracked a broader correction across venture-backed fintech companies that had been valued during the low-interest-rate, high-growth investing environment of 2020 and 2021. Many consumer fintech apps that raised money at similarly high valuations during that period later faced down-rounds, acquisitions at a discount, or shutdowns as investor appetite for unprofitable growth cooled sharply.

FAQs

When was Freetrade founded? Freetrade was founded in 2016 by Adam Dodds, Davide Fioranelli and André Mohamed, and is headquartered in London.

How did Freetrade make money without trading commissions? Freetrade earned revenue mainly from foreign-exchange fees on non-GBP trades, interest on customer cash, and optional paid subscription tiers rather than charging a fee on each trade.

Who acquired Freetrade? IG Group acquired Freetrade for £160 million in cash in a deal agreed in January 2025 and completed on April 1, 2025.

How much was Freetrade worth at its peak? Freetrade reached a peak private valuation of roughly £650 million in late 2021, before falling to £225 million in a 2023 crowdfunding round and selling for £160 million in 2025.

What happened to Freetrade’s app after the IG Group acquisition? Following the April 2025 acquisition, Freetrade continued operating as part of IG Group, giving the combined company a broader retail trading product lineup spanning Freetrade’s commission-free investing app and IG’s existing trading and spread-betting products.

Did Freetrade offer tax-advantaged accounts? Yes; Freetrade offered ISA and SIPP account types, letting UK customers invest within the country’s standard tax-advantaged savings and pension wrappers.

Editorially reviewed by Specialty Digest Editorial TeamLast reviewed November 9, 2026Researched and drafted with AI assistanceReport an issue