UK's Freetrade Acquires Stake's UK Arm, Rivaling Robinhood

October 2, 2024 : Freetrade, a prominent London-based investment platform, has announced the acquisition of the United Kingdom arm of Stake, an Australian investment platform. This strategic move underscores the intensifying competition within the British digital investment landscape.

The acquisition will see Freetrade assume control of Stake’s UK customer base and associated assets. This expansion is anticipated to bolster Freetrade’s presence in the UK market, actively competing with established players and newcomers.

Stake, founded in 2017, entered the UK market in 2020, aiming to provide affordable brokerage services to retail investors. However, following a recent business review, Stake has decided to refocus its operations on its core markets in Australia and New Zealand.

The financial terms of the transaction between Freetrade and Stake remain undisclosed. However, the deal is expected to provide Freetrade with a significant influx of new customers and assets, further solidifying its position as a leading player in the UK investment market.

Viktor Nebehaj, Freetrade’s new CEO, expressed enthusiasm for the acquisition, stating that it aligns with the company’s strategy of capitalizing on opportunities for inorganic growth. He emphasized Freetrade’s commitment to becoming the foremost commission-free investment platform in the UK.

This acquisition is pivotal for Freetrade, which recently reported its first profitable half-year. The company has been actively expanding its product offerings and services, aiming to attract a wider range of investors.

The acquisition of Stake’s UK operations is a testament to the growing popularity of commission-free investment platforms. As more investors seek affordable and accessible ways to invest, these platforms have gained significant traction in recent years.

The competition within the UK investment landscape is intensifying with the entry of major players such as Robinhood. Freetrade’s acquisition of Stake’s UK arm is a strategic move to strengthen its position and compete effectively in this dynamic market.

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