IG strengthens UK presence with Freetrade acquisition
IG acquires Freetrade for £160M
IG Group Holdings plc, a global leader in trading and investments, has announced its acquisition of Freetrade, a fast-growing commission-free investment platform, for £160 million.
This strategic move aims to strengthen IG’s UK trading and investment offerings while expanding its customer base and technological expertise, according to the company’s statement.
A strategic opportunity
Breon Corcoran, CEO of IG, highlighted the significance of this acquisition: “This is a rare opportunity to enhance IG’s UK trading and investment proposition and broaden our 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 rapid growth.” Viktor Nebehaj, CEO and co-founder of Freetrade, echoed these sentiments, calling the acquisition “an exciting opportunity to accelerate growth and innovation.”
Freetrade’s growth and market impact
Since its launch in 2018, Freetrade has attracted 720,000 customers and achieved assets under administration (AUA) of £2.5 billion as of the end of 2024. The platform offers access to over 6,200 global stocks and ETFs, fractional shares, ISAs, SIPPs, and more. Its user-friendly interface and transparent pricing have driven rapid client acquisition and retention.
In 2024, Freetrade’s revenue grew by 32% year-on-year to £27.5 million, with operating leverage resulting in positive EBITDA for the first time. The UK direct investment market, growing at a compound annual growth rate of 10%, is expected to expand further due to increasing financial literacy, digitalisation, and greater responsibility for retirement planning.
Integrating Freetrade into IG is expected to capture this growth while maintaining the platform’s operational independence and leadership team.
Transaction and future outlook
The acquisition will be funded entirely through IG’s existing capital resources, with completion anticipated by mid-2025, subject to regulatory approvals. As of May 2024, IG reported £638 million in surplus regulatory capital and expects to maintain a strong financial position post-acquisition.
To support Freetrade’s growth, IG plans to reinvest a significant portion of Freetrade’s projected profits over the next two years. Improvements will include product expansion, talent acquisition, and increased marketing efforts. IG anticipates the acquisition will deliver returns exceeding its weighted average cost of capital within three to five years.
This acquisition underscores IG’s commitment to innovation and customer-focused solutions, solidifying its position in the dynamic UK investment landscape.
Previously, TradingView expands integrated broker list by adding IG, a globally recognized CFD trading broker.
