Freetrade
UK app for commission-free stock trading, ISAs, and pensions, now owned by IG Group.
On the record
Checkpoint: IG Group FY2026 results disclosing Freetrade loss trajectory and brand strategy
The call
Freetrade now competes for survival inside its own parent company as much as against Robinhood UK or Trading 212.
Freetrade lets people buy and sell stocks and funds on their phone without paying commissions, but so do Robinhood UK, Webull UK, and Trading 212, which all offer the same thing. It is not hard to copy because the only real requirement is getting approval from British financial regulators, which every competitor already has. After its parent company IG Group bought Freetrade in April 2025 for less money than it was worth two years earlier, losses grew to £24.4 million and subscription income fell because Freetrade had to give its paid features away for free to compete. The one thing that could change this is if IG Group's leadership decides Freetrade is worth keeping as a separate brand instead of folding it into IG's existing products, but that seems unlikely because IG just launched its own Junior ISA product before Freetrade did, suggesting the parent company may see Freetrade as something to eventually combine with its own platform rather than something to fight for.
Why
01
AI pressure: None apparent. AI robo-advisors could automate portfolio picking, but Freetrade's threat is commercial, not algorithmic, for now. Could AI do the core job? Only partly.
02
Bigger players: IG Group Holdings plc (parent company). IG bought Freetrade for £160m, then launched its own competing Junior ISA before Freetrade's, raising cannibalization questions. Could a giant copy it? Yes, easily.
03
What protects it. FCA trading license and IG's balance sheet keep it funded, but neither stops IG from absorbing or shrinking the brand.
What would change this call
IG Group's FY2026 results (around May 2026) disclose Freetrade's loss trajectory and any brand guidance. Shows whether IG is investing in Freetrade as distinct brand or absorbing it.
Whether IG retires its own Junior ISA or keeps both IG and Freetrade versions live. Indicates if Freetrade remains a separate product line or gets folded into IG.
Any announcement of headcount cuts under Freetrade's 'increased automation' initiative. Would confirm cost-cutting and consolidation rather than growth investment.
Whether IG retires its own Junior ISA or keeps both IG and Freetrade versions live. Indicates if Freetrade remains a separate product line or gets folded into IG.
Any announcement of headcount cuts under Freetrade's 'increased automation' initiative. Would confirm cost-cutting and consolidation rather than growth investment.
Key numbers
- £24.4m loss in first year under IG ownership
- Bought for £160m, 29% below 2023's £225m valuation
- IG injected extra £6.5m capital
Named risks
- Parent IG Group launching overlapping products signals possible absorption or brand retirement.
- Widening losses (£24.4m FY2025) under IG ownership despite prior profitability trend.
- Forced migration of ISA, SIPP and funds to free tier eroding subscription revenue.
- Subscale user base (720k) versus rivals like Trading 212 (5m+).
- Criticism over commission-free marketing amid FX fee structure could draw regulatory scrutiny.
Rivals, as read in July 2026
| Rival | Direction | Evidence |
|---|---|---|
| Trading 212 | gaining on | 5m+ users vs Freetrade's 720k customers (2026-06-05) |
| Robinhood UK | contesting | Launched UK Stocks and Shares ISA Feb 2026, matching Freetrade's core product |
| Webull UK | contesting | Launched flexible ISA and fractional shares April 2026 |
| IG Group (parent) | contesting | Launched own Junior ISA March 2026, one month before Freetrade's April 2026 JISA |
| Lightyear and Prosper | gaining on | Cited by Freetrade as pressure forcing free-tier pricing overhaul, Jan 2026 |
Questions people ask
- Is Freetrade profitable in 2026?
- No. Freetrade's pre-tax loss widened to £24.4 million in FY2025, its first full year under IG Group ownership, as subscription revenue fell to £6.8m from £7.1m after ISA, SIPP and funds were moved to a free tier. Disclosed 2026-05-11.
- Who owns Freetrade now?
- Freetrade is a wholly owned subsidiary of FTSE-250 firm IG Group Holdings plc, operated legally through IG's Market Data Limited. IG announced the £160m cash acquisition on 2025-01-16 and completed it 2025-04-01.
- Who is Freetrade's biggest competitor?
- Trading 212, with 5m+ users and ~€30bn AUM claimed as of 2026-06-05, dwarfs Freetrade's 720,000 customers (FY2024). Robinhood UK and Webull UK also match Freetrade's ISA and fund features in 2026.
- Could AI replace Freetrade's core business?
- Not the regulated custody and ISA/SIPP tax-wrapper functions, which require FCA permissions. IG flagged 'increased automation across key processes' for Freetrade in 2026, but no specific AI-driven feature or efficiency gain has been publicly confirmed as of mid-2026.
- Is Freetrade being absorbed into IG Group?
- Signs point that way: IG launched its own Junior ISA in March 2026, one month before Freetrade's April 2026 Junior ISA launch, and placed two IG executives on Freetrade's board (July 2025, February 2026) plus a £6.5m capital injection.
- Is Freetrade growing or shrinking?
- Mixed. FY2024 revenue rose 32% to £27.5m with 720k customers, but under IG ownership FY2025 subscription revenue fell to £6.8m as core products moved to a free tier, while the pre-tax loss widened to £24.4m.
Timeline
- 2026-04-01Freetrade launches free Junior ISA, £9,000 annual allowance, no fees
- 2026-03-01IG Group launches its own Junior ISA, ahead of Freetrade's
- 2026-02-01IG adds £6.5m capital and places Michael Healy on Freetrade board
- 2026-01-01SIPP, gilts, portfolios and all mutual funds moved to free Basic plan
- 2025-09-01ISA moved to free Basic tier, 28 Vanguard funds added to Standard tier
- 2025-07-01IG places Clifford Abrahams on Freetrade's board
- 2025-06-01Mutual funds launched in beta, 22 Vanguard funds, Plus tier only
- 2025-04-01IG Group completes £160m acquisition of Freetrade
- 2025-01-16IG Group announces £160m acquisition of Freetrade
- 2024-08-01Freetrade partners with Sharegain to launch UK retail securities lending
Revision history
22 July 2026
First assessed. Protection under test. The text above is fixed as of this date and is not edited afterwards.
In the same band
Sources
- Freetrade Loss Widens to £24.4 Million in First Year Under IG Ownership (2026-05-11)
- Acquisition of Freetrade (2025-01-16)
- Acquisition of Freetrade (2025-04-01)
- Early crowdfunding investors bag returns as UK startup Freetrade snapped up for £160M (2025-01-17)
- Freetrade Stock Price, Funding, Valuation, Revenue & Financial Statements (2025-01-20)
- National Storage Mechanism (2025-01-22)
- Freetrade (2026-06-27)
- Freetrade expands to offer over 1000 mutual funds following major pricing overhaul (2026-05-15)
- The Freetrade Junior ISA is here (2026-03-30)
- Best ETF Platforms in the UK in 2026 (2026-06-05)
- review and alternatives (2026) (2026-06-19)
- Freetrade launches Junior ISA with no account fees (2026-04-02)