IG Group Holdings has announced its acquisition of Freetrade, the commission-free investment platform, for £160 million.
Freetrade, launched in 2018, has grown rapidly to serve 720,000 customers with £2.5 billion in assets under administration by the end of 2024.
The acquisition aims to strengthen IG’s position in the UK trading and investments market whilst providing access to new customer segments. Some may see the £160m enterprise value paid for Freetrade as a bargain.
Freetrade has demonstrated steady growth, with revenue increasing by 32% year-on-year to £27.5 million in 2024. Freetrade’s revenue streams are well diversified across subscriptions, foreign exchange transaction fees, and interest income. The company achieved positive EBITDA for the first time in 2024, marking an important milestone in its growth trajectory.
The strategic purchase comes as the UK direct investing market continues to show strong growth at 10% compound annual growth rate with more investors taking control of their investments personally and financial literacy growing.
IG plans to operate Freetrade as a standalone business, retaining its brand and existing management team, including CEO and co-founder Viktor Nebehaj. The transaction is expected to complete in mid-2025, subject to regulatory approvals.