Freetrade: IG Group swoops for trading app in pivot to UK market

IG Group has acquired stock trading app Freetrade for £160m, as the FTSE 250 firm looks to target a new UK audience of traders.

The trading platform , along with its 720,000 customers and £2.5bn in assets, will move to IG Group in mid-2025, subject to regulatory approval, the firm said in a stock exchange notice today.

Throughout 2024, revenue at Freetrade increased 32 per cent to £27.5m, leading to a positive operating profit for the first time.

In the first half of year, investors piled £233m onto the platform, with net flows up 87 per cent.

“This is a rare opportunity to strengthen IG’s UK trading and investments offering and broaden our target addressable market,” said IG Group chief executive Breon Corcoran.

“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.”

In 2022, rumours emerged that JP Morgan was looking to acquire Freetrade , following its acquisition of Nutmeg.

In August, Freetrade launched a share lending service , meaning investors were able to lend their shares to short selling.

The service is not offered by mainstream platforms like Hargreaves Lansdown and AJ Bell, as it has some downsides, such as risks over the borrower defaulting and losing share voting rights.

However, Freetrade said it would hold a collateral of safe assets like cash or bonds worth at least 105 per cent of the value of the shares on loan, and the platform said it would make up the difference if the collateral proved insufficient.

“This is an exciting opportunity to accelerate our growth and delivery of new products and features on our award-winning platform,” said Viktor Nebehaj, chief executive and co-founder of Freetrade.

“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.”

Freetrade’s leadership team will remain with the firm and continue to scale the business, the company added.

IG Group’s full-year results are set to be released on 23 January, and also said today that its existing share buyback programme of £150m announced in July is expected to be extended.