Freetrade Takes Over Stake’s UK branch, Preparing To Compete With Robinhood
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Freetrade, a British investing platform, has decided to buy the UK client base of Australian company Stake. This shows that competition in digital investing in Britain is getting stronger. With this deal, the British company will gain control of Stake’s UK client base and their holdings.
Freetrade, which looks after over £2 billion in UK investments, plans to finish moving Stake’s customers by November. In the next few weeks, Stake customers will get information on how to move their money and investments to Freetrade.
Nebehaj Aims To Make Freetrade The Best No-Fee Trading Platform In The UK
Viktor Nebehaj, the new Chief Executive Officer of Freetrade who took over from Adam Dodds, said the deal is part of the team’s plan to grow the company. Dodds, who started Freetrade, stepped down in May after leading the company for six years.
This change comes after Freetrade grew from a small startup trying to change wealth management to a company with over 1.4 million users and 150 employees. In 2020, it saw a lot of growth, drawing in many new users every day during the increased trading activities like the GameStop stock trading situation.
Nebehaj also said he wants to make Freetrade the best no-fee trading platform in the UK. Both companies kept the deal’s financial details private. Stake started operating in the UK in 2020 but is now concentrating on its main operations in New Zealand and Australia..
This deal happens as Freetrade reports its first profit in 2024. The company made £91,000 in the first half of the year, with sales going up 34% to £13.1 million compared to last year.
Freetrade’s Total Revenue Rose To £21.6 Million In 2023
The company balanced its books in the first quarter, improving on last year’s £8.3 million loss, which was better than the £28.8 million loss the year before. In 2023, total revenue grew to £21.6 million, up 45% from 2022. Nebehaj said the team has been collaborating with Stake to ensure a smooth handover for UK customers. He added that the team is excited to welcome and support their investment goals.
This move shows how tough the UK investing market has become, especially with Robinhood, a big US company, entering the market. Robinhood, which started in the UK in November last year, has been growing fast and offering new services to draw in British investors.
Freetrade will need to handle the challenges of bringing in Stake’s customers while continuing to grow and compete with established companies and newcomers in the fast-changing fintech industry.
