London based commission-free stockbroking startup Freetrade passed an important milestone this week having signed up its one-millionth UK user.
Freetrade launched in 2018, with the ambition of democratising share trading and removing high fixed costs, such as commission that deterred many smaller first time investors.
The business has grown steadily since then both in terms of popularity and the volumes of business it transacts.
How big is Freetrade?
According to data gathered by trade reporting business Tradecho Freetrade is now the second-largest retail broker dealing on the London Stock Exchange, as measured by the number of trades the broker transacts over the exchange’s RSP network.
The RSP network allows retail brokers to interact electronically with market makers in LSE listed stocks. Market makers on the RSP network are polled for a price, in a given security, allowing the retail broker to obtain the best price and therefore best execution for its clients.
Is Freetrade expanding overseas?
Freetrade has also been expanding beyond the UK and now employees more than 200 staff and offers trading in more than 5000 stocks, ETFs and Investment Trusts.
It has opened overseas offices in Brisbane (Australia), Stockholm (Sweden) and Vancouver (Canada) the company is aiming to roll out commission-free share trading across Europe in 2022 starting in Sweden
Speaking about achieving its millionth UK user Freetrade founder and CEO Adam Dodds, said:
“This is a key milestone in our journey to get everyone investing. I’m proud about the dedicated work shown by everyone on our team.”
“As we head towards the end of the year, we’re continuing to accelerate our growth across Europe and beyond.”
Freetrade now offers its customers access to premium membership and accounts for a fixed fee per month, and a low fixed cost SIPP, through which clients can manage their pension investments.
Freetrade raised $69.0 million through a Series B funding round in March this year, that took the company’s valuation to $366.0 million.
The funding round was led by Left Lane Capital a Brooklyn New York-based VC which has previously invested in brands such as Hello Fresh, Trivago and neobank N26.
Freetrade is becoming a major player in the UK retail stockbroking business and it will be interesting to see how that model transfers into continental Europe.