No-Fee Broker Freetrade Raises £50 Million Led by US Investor

Freetrade, the UK commission-free stock 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, has closed on £50 million in its most recent funding round, Sky News reports.

The new investment was led by Left Lane Capital, a New York-based venture capital and early growth equity firm, focused on internet businesses, along with Bernard Arnault-backed private equity firm, L Catterton.

The round includes £35 million in new shares, and roughly £15 was injected from sales of existing Freetrade investors.

The funding will be used by Freetrade for further growth and product development, including doubling down on expanding into new markets. The firm, which claims more than 600,000 customers, has used the Crowdcube platform many times to open its equity up to retail investors and raise fresh capital.

In 2020, London-based start-up made a record-breaking crowdfund in which it secured £1 million in just 77 seconds, also on Crowdcube. This then got a significant top up after Freetrade raised a total of £5 million across two further Crowdfunding Crowdfunding Crowdfunding is defined as funding of a project via raising smaller denominations of money across a large body of number of people.New businesses that need access to more capital may also conduct crowdfunding. Generally, crowdfunding is performed through an online community, social media, or crowdfunding websites such as Kickstarter, GoFundMe, and RocketHub. Depending upon which jurisdiction an investor resides within will dictate the sort of restrictions that are applied to the crowdfunding pro Crowdfunding is defined as funding of a project via raising smaller denominations of money across a large body of number of people.New businesses that need access to more capital may also conduct crowdfunding. Generally, crowdfunding is performed through an online community, social media, or crowdfunding websites such as Kickstarter, GoFundMe, and RocketHub. Depending upon which jurisdiction an investor resides within will dictate the sort of restrictions that are applied to the crowdfunding pro Read this Term rounds which were notably in the firm’s very first crowdfunding attempt back in 2016.

In 2019, they raised $15 million, including a Series A led by venture capital firm, Draper Esprit.

Rather than partnering with an established broker, Freetrade holds a 'full scope firm' license from the FCA.

No-Fee Competition Heats up in the UK

Freetrade, which calls itself a challenger stockbroker, has rebuilt its platform infrastructure for investing to allow traders to place their instant orders without having to pay a commission fee. Before that, clients were allowed to invest in stocks and ETFs, but only if they accept to execute their trades at the end of business day, otherwise the broker charges £1 per trade.

Freetrade’s app offers commission-free stock investment and is targeted mainly at millennials. The company has recently accelerated both new investments and product range, including the introduction of fractional shares.