Freetrade Ends FY21 with a 647% Revenue Jump, Clients Crossed 1 Million

Freetrade, which is establishing itself as a commission-free brokerage platform in the UK and Europe, has published a consolidated report of its business for the financial year 2021, which ended on 30 September.

The trading platform generated revenue of £12.7 million for the 12 months. It was 647 percent higher than the revenue of £1.7 million it brought in the previous year.

The revenue was pushed higher as the trading volume in the period tripled. It came in at £3.3 billion, 313 percent higher than FY2020. Additionally, the app-based broker enhanced its service in the year by adding new stocks, exchange-traded funds and investment trusts.

Freetrade is primarily based in the United Kingdom but is now expanding its footprint within the European Economic Area. It has already entered multiple European countries with plans for further expansion.

Users Exploded

In addition, the company added 637,895 new traders to its trading platform Trading Platform In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real Read this Term, ending the financial year with a total of 886,743 clients. It was a yearly increase of 256 percent. On top of that, it revealed that by the end of 2021, outside of FY2021, the number of users on the platform crossed 1 million.

“There has been a strategic investment in marketing Marketing Marketing is defined as the business process of identifying, anticipating and satisfying customers' needs and wants.This is a crucial element of any operation or brokerage in the financial services space. Well-funded marketing campaigns are instrumental to the survival and longevity of these companies in an increasingly competitive industry.Within the forex space, marketers perform a wide range of functions to help procure, secure, or retain clients.In particular, newer forex brokers also have t Marketing is defined as the business process of identifying, anticipating and satisfying customers' needs and wants.This is a crucial element of any operation or brokerage in the financial services space. Well-funded marketing campaigns are instrumental to the survival and longevity of these companies in an increasingly competitive industry.Within the forex space, marketers perform a wide range of functions to help procure, secure, or retain clients.In particular, newer forex brokers also have t Read this Term activity to drive the strong levels of new customer growth in the year, including brand awareness campaigns,” Companies House filing stated.

Moreover, the asset under administration on the platform increased by 260 percent to £897.5 million.

However, the brokerage startup is burning money, which comes at the cost of the growth of such companies. The pre-tax loss of the broker for the fiscal year almost doubled to £18.2 million from the previous year’s £9.5 million. However, it detailed that the administrative cost skyrocketed due to the increase in headcount and investment in product and engineering-related functions.

Meanwhile, Freetrade has closed a £30 million funding round recently through a loan agreement. The company was valued at £650 million in its last equities funding round in November.