IG Group Holdings plc has announced the acquisition of Freetrade, a fast-growing UK commission-free investment platform, for £160 million. The deal will enhance IG’s UK trading and investment services, broaden its target market, and bring in new capabilities, including scalable technology and a strong brand. Freetrade, which offers over 6,200 global stocks, ETFs, ISAs, SIPPs, and more, has seen rapid growth with 720,000 customers and £2.5 billion in assets under administration (AUA) by the end of 2024.
This follows Freetrade’s previous valuation cut of more than 60% from £650m to £225m in 2023.
The acquisition will be funded in cash and is expected to close by mid-2025, subject to regulatory approvals. IG plans to operate Freetrade as an independent business, retaining its leadership team and investing in product expansion, talent acquisition, and marketing. IG expects the acquisition to deliver strong returns within three to five years while maintaining surplus regulatory capital.
Freetrade achieved positive EBITDA in 2024, with revenues growing 32% year-on-year to £27.5 million. IG plans to reinvest profits into Freetrade’s growth and extend its share buyback program following the acquisition.
Breon Corcoran, CEO of IG commented:“This is a rare opportunity to strengthen IG’s UK trading and investments offering and broaden our target addressable market. Freetrade is one of the most successful emerging players in the UK direct-to-customer investment market, with a strong brand, highly scalable technology and delivering rapid growth. I am delighted that Viktor and his team will join IG and continue to lead Freetrade.”
Viktor Nebehaj, CEO and co-founder of Freetrade said:“This is an exciting opportunity to accelerate our growth and delivery of new products and features on our award-winning platform. IG’s vision for Freetrade is closely aligned with our own and its backing will be of huge benefit as we continue to scale the business.”
Richard is the founder of the Good Money Guide (formerly Good Broker Guide), one of the original investment comparison sites established in 2015. With a career spanning two decades as a broker, he brings extensive expertise and knowledge to the financial landscape.
Having worked as a broker at Investors Intelligence and a multi-asset derivatives broker at MF Global (Man Financial), Richard has acquired substantial experience in the industry. His career began as a private client stockbroker at Walker Crips and Phillip Securities (now King and Shaxson), following internships on the NYMEX oil trading floor in New York and London IPE in 2001 and 2000.
Richard’s contributions and expertise have been recognized by respected publications such as The Sunday Times, BusinessInsider, Yahoo Finance, BusinessNews.org.uk, Master Investor, Wealth Briefing, iNews, and The FT, among many others.
Under Richard’s leadership, the Good Money Guide has evolved into a valuable destination for comprehensive information and expert guidance, specialising in trading, investment, and currency exchange. His commitment to delivering high-quality insights has solidified the Good Money Guide’s standing as a well-respected resource for both customers and industry colleagues.
You can contact Richard at richard@goodmoneyguide.com
