IG Strengthens UK Presence with £160M Freetrade Buyout
IG Group Holdings has announced its acquisition of the UK-based neobroker, Freetrade, for £160 million. This acquisition strengthens IG’s UK market position and expands its offerings in the self-directed investment space.
Details of the Acquisition
The acquisition was announced on January 16, 2025. IG will fund the £160M deal using its existing capital resources. The acquisition is expected to be completed by mid-2025, pending regulatory approvals.
IG plans to keep Freetrade as a standalone entity, operating under its own brand. The current CEO, Viktor Nebehaj, and his leadership team will remain in charge. IG aims to scale the business and accelerate its growth through continued product development and enhanced market reach.
Freetrade Performance Metrics
- Freetrade’s revenue grew from £21.6M in 2023 to £27.5M in 2024.
- The company reached 720,000 customers by the end of 2024.
- Assets Under Administration (AUA) increased from £1.2B in 2022 to £2.5B in 2024.
- Customers with £10k+ AUA grew from 27,000 to 41,000 by December 2024.
- Freetrade achieved an EBITDA of £2.1M in 2024, up from a loss of £8.6M in 2023.
Benefits for Users
This acquisition might have these benefits for users:
More Trading Options and Features
Freetrade’s innovative platform will bring additional tools and features to IG’s offerings. Traders can expect more diverse investment options and improved functionality.
Strengthened UK Market Presence
The acquisition strengthens IG’s position in the UK market, providing traders with a more robust and competitive platform. Freetrade’s growing customer base and technology can enhance IG’s appeal to UK investors and traders.
Increased Customer Access and Growth
With Freetrade’s 720,000 customers and £2.5B AUA, IG gains access to a rapidly growing investor base. This could lead to more liquidity and trading activity.
Operational Continuity
Freetrade will continue to operate independently, maintaining its brand and management team. Traders using Freetrade can expect minimal disruption, with the potential for continued improvements in platform performance and user experience.
About IG Group
Stuart Wheeler Founded IG Group in 1974. IG Group is a leading global provider of online trading and investment services. The company offers access to approximately 19,000 financial markets. It serves over 240,000 clients worldwide. IG Group promotes financial freedom through its innovative trading platforms and educational ecosystem. It has a network spanning Europe, North America, Africa, Asia-Pacific, and the Middle East.
About Freetrade
Freetrade is a London-based fintech company that offers a commission-free investment platform. Adam Dodds and André Mohamed founded it in 2015. It aims to democratize investing by providing easy access to financial markets. The platform allows users to trade UK, US, and European stocks, as well as ETFs, through a mobile app.
Summing Up
This acquisition strengthens IG Group’s position in the growing UK investment market. Freetrade’s established customer base and scalable technology offer valuable growth potential for IG.
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