From CNBC: 2024-10-01 04:21:50

London-based Freetrade is buying the U.K. customer book of Australian investing app Stake, aiming to strengthen its domestic business amid growing competition in the digital investment platform market.

Stake, founded in 2017, is focusing primarily on its Australia and New Zealand operations after launching in the U.K. in 2020. Customers will soon transition to Freetrade.

Freetrade, with more than 1.4 million users as of April 2024, is expanding from the U.K. to the EU. Earlier this year, CEO Adam Dodds left the company, succeeded by Viktor Nebehaj.

Freetrade experienced rapid growth during the retail stock investing frenzy but later faced challenges from higher interest rates, resulting in layoffs and a decrease in valuation.

In 2024, Freetrade reported its first half-year profit, reaching £91,000 in adjusted earnings. CEO Nebehaj is focused on solidifying Freetrade as the leading commission-free investment platform in the U.K. market.

Freetrade currently manages over £2 billion in assets for U.K. clients. Globally, Stake administers over $2.9 billion in assets. Robinhood, a major player in the U.S., expanded to the U.K. in 2023 with $144 billion in assets under management.

Robinhood recently launched a securities lending scheme in the U.K. as part of its efforts to attract British clients. The ongoing competition among investment platforms signals an evolving landscape in the fintech industry.

Read more: Freetrade buys UK arm of Australian investing platform Stake