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IG Group Acquires Freetrade for £160 Million to Expand UK Trading Market

 


A Strategic Acquisition

IG Group Holdings plc (LON: IGG) has announced the acquisition of neobroker Freetrade for £160 million (USD $195 million). This move marks IG’s expansion into the UK’s fast-growing direct investment market, strengthening its trading and investment services.

Why Freetrade?

Since its launch in 2018, Freetrade has established itself as a major player in the UK neobroker market. With 720,000 customers and £2.5 billion in assets under administration (AUA), it has seen rapid growth. In 2024 alone, Freetrade reported revenues of £27.5 million, reflecting a 32% year-over-year increase.

The acquisition provides IG with:

  • A direct-to-customer investment platform with strong brand recognition.
  • A scalable technology infrastructure.
  • A growing user base and diversified revenue streams from subscriptions, foreign exchange fees, and interest income.

IG’s Vision and Plans

IG has confirmed that Freetrade will continue operating as a standalone business, retaining its existing brand, leadership, and operational structure. CEO Viktor Nebehaj and his team will remain to lead the company post-acquisition.

Breon Corcoran, CEO of IG, highlighted:

“This is a rare opportunity to strengthen IG’s UK trading and investments offering and broaden our target addressable market.”

IG’s investment will be directed toward:

  • Expanding Freetrade’s product range.
  • Enhancing marketing efforts.
  • Hiring top talent.
  • Accelerating new feature development.

Financial and Regulatory Aspects

The £160 million acquisition will be funded from IG’s existing capital resources. The deal is pending regulatory approvals, expected to be completed by mid-2025.

IG also stated that it expects a return on invested capital exceeding its weighted average cost of capital within three to five years. The broker reported £638 million in surplus regulatory capital as of May 2024 and plans to extend its £150 million share buyback programme.

Freetrade’s Future Growth

Freetrade’s platform offers 6,200 global stocks, ETFs, fractional shares, ISAs, SIPPs, UK Treasury bills, and securities lending. IG’s backing will accelerate its expansion and allow it to compete in an increasingly competitive investment landscape.

Viktor Nebehaj, CEO of Freetrade, commented:

“IG’s vision for Freetrade is closely aligned with our own, and its backing will be of huge benefit as we continue to scale the business.”

Conclusion

With this acquisition, IG Group is positioning itself as a dominant force in the UK’s direct investment market. The deal offers growth potential, enhanced product offerings, and greater financial stability for Freetrade, while IG expands its market presence and diversifies its revenue streams.

 

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