US business news source CNBC is reporting that UK neobroker Freetrade has expanded in its home market by acquiring the UK client base and related assets of Australia based online broker Stake.
Stake launched services for UK clients in 2020, and soon after Stake raised a $40 million (AUD) financing round targeting continued expansion. However apparently its UK experiment was more costly (and slower growing) than expected in the ultra-competitive UK online trading market, and Stake decided to withdraw from the UK to focus primarily on its Australia and New Zealand operations, as well as some other regions where it has gained some traction such as Latin America.
The parties did not disclose what consideration was paid to Stake.
Freetrade has gone through its own growing pains, posting a loss of nearly £40 million in 2022, which was cut to a reported £8 million loss in 2023. Earlier this year Freetrade co-founder Adam Dodds stepped down from his role as CEO, replaced by COO and co-founder Viktor Nebehaj. The company also recently revealed that it was marginally profitable in the first half of 2024, with Revenues at Freetrade up by 34% to £13 million in the first six months of the year.
Freetrade, while improving its bottom line, is still in a very heated competitive battle with larger incumbent online brokers in the UK such as IG Group, CMC Markets and Plus500, as well as US neobroker Robinhood which is increasing its presence in the UK market. Last year Robinhood hired Freetrade EU head Jordan Sinclair as new Robinhood UK CEO.