Freetrade closed £50 million in the recent funding round. Freetrade is the UK no-fee stock trading platform.
Left Lane Capital, a New York based venture capital and an early growth equity firm led the new investment. The firm focuses on internet businesses together with Bernard Arnault-backed private equity firm, K Catterton.
The investment includes £35 million in new shares, and close to £15 injected from sale of existing Freetrade investors.
Freetrade will use the funding for growth, product development, and expanding to new markets. Freetrade claims more than 600,000 customers.
The firm has used Crowdcube platforms severally to open its equity up for retail investors and raise fresh capital.
In 2020, Freetrade made a record-breaking crowdfunding when it secured £1 million in just 77 seconds on Crowdcube. It then got a significant top up after the broker raised a total of £5 million across two other crowdfunding rounds. The two rounds were notably in their very first crowdfunding attempt back in 2016.
In 2019, Freetrade raised $15 million, including Series A which Draper Esprit, a venture capital led.
The UK based broker has not partnered with an established broker, but holds a “full scope firm”license from the FCA.
No-fee competition heats up in the UK
Freetrade calls itself a challenger stockbroker and has rebuilt its platform infrastructure for investing. The infrastructure allows traders to place their orders without paying a commission fee.
Prior to that, customers were allowed to invest in stocks and EFTs but only if they accepted to execute their trade at the end of business day. Otherwise the broker would charge £1 per trade.
The broker’s app offers commission-free stock investment, mainly targeting millennials. The trader has recently accelerated both new investments and product range to introduce fractional shares.