Freetrade app on smartphone and desktop.
Free trade
LONDON — Freetrade, the British rival to popular stock trading app Robinhood, said Thursday that it has been acquired by online investment platform IG Group.
The free trade deal is valued at £160 million ($195 million) – a 29% discount on it. Latest evaluation. The startup said it will continue to operate as a commercially independent entity under its own brand.
Founded in 2016, Freetrade has gained popularity among younger, less experienced traders in the UK with its commission-free trading platform.
The app initially started offering stocks but later expanded to include trading in exchange-traded funds, savings products, and government bonds.
In times of pandemic, free trade has been on the rise due to the craze of retailers. The app benefited greatly from the “short squeeze” on GameStop in early 2021, when traders on a Reddit forum for retail investors piled into the stock and caused its price to soar.
Short selling refers to the practice of an investor borrowing an asset and then selling it on the open market with the expectation of repurchasing it for less money in the future to make a profit.
However, deteriorating macroeconomic conditions in 2022 and 2023 severely hurt Covid superstars such as free trade – and in 2023, free trade completed the process of Evaluation crowdfunding round It is worth £225 million, down 65% from the £650 million it was previously worth.
The deal is a potential sign of further consolidation in the wealth technology industry. And yet comes Hargreaves Lansdowne He was It was acquired for £5.4 billion by a group of investors Including private equity giant CVC Group.
Victor Nebhag, CEO and co-founder of Freetrade, described the acquisition as “a transformative transaction that recognizes the significant value created by Freetrade.”
“Combined with the great resources and support provided by IG Group, this is an exciting opportunity to accelerate our growth and introduce new products and features,” he added.
The deal is subject to customary closing conditions including regulatory approvals, Freetrade said, adding that it expects the deal to close later this year.
