London-based online trading platform Freetrade has announced its acquisition of the U.K. customer book of Stake, an Australian investing app. This strategic move is aimed at strengthening Freetrade’s presence in the domestic market, especially in the face of increasing competition from new players like the U.S.-based giant Robinhood.
The agreement between Freetrade and Stake involves the transfer of all of Stake’s U.K. clients and assets to Freetrade’s platform. While the financial details of the deal remain undisclosed, the transaction signifies a significant step for both companies.
Stake, originally founded in Sydney, Australia in 2017, expanded its services to the U.K. in 2020. However, a recent business review prompted the company to refocus its efforts on its operations in Australia and New Zealand. As a result, Stake decided to offload its U.K. customer base to Freetrade.
Customers of Stake U.K. will be contacted in the coming weeks with instructions on how to transfer their assets and funds to Freetrade. The transition is expected to be completed by November, allowing customers to continue using their Stake accounts until the migration is finalized.
Freetrade, which primarily operates in the U.K., has been eyeing expansion into the European Union market. Offering a range of investment products such as stocks, exchange-traded funds, individual savings accounts, and government bonds, Freetrade boasts a user base of over 1.4 million as of April 2024.
Earlier this year, Freetrade underwent a leadership change as co-founder and CEO Adam Dodds stepped down after six years at the helm. He was succeeded by Viktor Nebehaj, the former chief operating officer of the company.
Despite facing challenges such as the impact of higher interest rates on investor sentiment, Freetrade has shown signs of resilience and growth. The company reported its first-ever half-year profit in 2024, with revenues climbing 34% year-over-year to ÂŁ13.1 million. CEO Nebehaj expressed his commitment to scaling Freetrade into the leading commission-free investment platform in the U.K. market.
With over ÂŁ2 billion in assets under management for U.K. clients, Freetrade’s acquisition of Stake’s U.K. customer book is a strategic move to further solidify its position in the market. Meanwhile, Stake globally manages over $2.9 billion in assets under administration.
In a market where competition is intensifying, especially with the entry of Robinhood in the U.K. market in 2023, Freetrade is focused on leveraging opportunities for growth and expansion. As the industry continues to evolve, Freetrade remains dedicated to supporting its customers on their investment journeys and delivering value through its platform.
