Freetrade books £40M loss as valuation crashes

abdelaziz Fathi

Freetrade, which calls itself a challenger stockbroker, has released its financial results for the fiscal year ending September 30, 2022.

Per a Companies House filing, the company reported revenue exceeding £15.6 million, up 23.8% compared to £12.47 million in 2021. However, Freetrade’s net loss for the period increased to £39.7 million, compared to the loss of £17.1 million in the previous year.

The filing highlighted that the group’s increased loss for the financial year was primarily attributed to elevated costs. Sales costs rose from £1.6 million to £2.2 million, while “other operating expenses” surged from £29.27 million to £55.7 million.

The sluggish results come shortly after the loss-making investing app slashed its pre-money valuation by 65 percent as part of a crowdfunding campaign. The move was another sign of the crisis that is gripping start-ups due to a wider sell-off in the financial technology sector and a market slowdown.

The latest financing valued Freetrade at £225 million, significantly lower than its previous valuation of £650 million recorded in November 2021.

Per a letter obtained by the Financial Times, Freetrade signed term sheets with new investors to inject fresh capital at a £700 million valuation. The deal was cancelled in January as investors turned wary of highly valued tech start-ups as stock markets plunged.

This markdown aligns with a broader trend of decreasing valuations in the tech industry as interest rates rise and investor sentiment shifts. Notably, Robinhood has seen its stock price plummet by 70% since its public listing in July 2021. Similarly, Schroders, an investment firm, marked down the value of its investment in Revolut, another fintech company offering trading accounts, by 50% in April.

Freetrade’s app offers commission-free stock investment, and is targeted mainly at millennials. The company has rebuilt its platform infrastructure for investing to allow traders to place their instant orders without having to pay a commission fee. Before that, clients were allowed to invest in stocks and ETFs, but only if they accept to execute their trades at the end of business day, otherwise the broker charges £1 per trade.

Rather than partnering with an established broker, Freetrade holds a ‘full scope firm’ license from the FCA.

Read this next


Groundbreaking Innovations in BlockDAG’s Keynote 2 Drive Over 1120% Increase; Toncoin & Celestia Prices Rise

Explore BlockDAG’s Keynote 2, detailing the cutting-edge technical advancements that led to a significant presale boom. Discover how these innovations have driven BlockDAG’s success, and get the latest updates on Celestia and Toncoin prices.


BlockDAG X1 Beta App Pioneers in Crypto Mining Amidst Ethereum vs Solana Rivalry and XRP Price Increase

Dive into the details of BlockDAG’s X1 beta app’s global tech presence in Shibuya, Las Vegas, and Piccadilly Circus and its pre-sale triumph during a spike in Ethereum, Solana, and XRP values.


BlockDAG Hits $50.4M with Active Dev Release & Community Engagement; Binance Coin Price Drops and JasmyCoin Rallies

Explore how BlockDAG bolsters its reputation through a steady stream of Development releases. Get insights on Binance Coin price trends and the recent Jasmy Coin rally.

Crypto Insider

5 Upcoming Crypto for 10x Gains: How $1000 Can Become $10,000

Consider a situation where a $1000 investment may grow to a whopping $10,000. Astute Bitcoin investors have experienced this as a reality rather than a fantasy.

Retail FX

Weekly Roundup: eToro links up with Elon Musk, US crackdown on Russian FX

Let’s take a look back at top stories that dominated the financial markets in our Weekly Round coverage. This week’s digest takes a deep dive into the most recent events and trends within the Forex, Fintech, and cryptocurrency.


Must-Watch Top 5 Crypto Picks for Q2 2024 Featuring BlockDAG, Toncoin, Solana and More

Dive into BlockDAG’s meteoric rise and explore other promising altcoins like Pepe, Toncoin, Solana, and Render for superior returns.

Retail FX

Clone of Admiral Markets draws FCA attention

The United Kingdom’s financial markets watchdog today unmasked another fraudulent entity, this time bringing to light a clone firm that has been posing as FCA-‎authorised brand, Admiral Markets UK Ltd.

Digital Assets

Gemini Earn users to recover $2.18 billion in crypto payouts

Cryptocurrency exchange Gemini has agreed to pay $50 million worth of digital assets to investors in its Gemini Earn program as part of a settlement with the New York Attorney General (NYAG), announced on Friday.

Fundamental Analysis, Market News, Tech and Fundamental

Global FX Market Summary: British Pound (GBP) Weakness, US Inflation, Euro, USD June 14 ,2024

British Pound weakens due to lower inflation expectations, potential policy changes from Reform Party, and broader economic concerns.