Freetrade launches another round of crowdfunding
Freetrade, a stockbroking app that is commission-free and which has a strong user base in the UK, has announced that it would be going for another round of crowdfunding after having raised $69 million just a few months back in its Series B.
Commission-free trading is the ‘in’ thing nowadays in the stockbroking market with many retail trading brokers all around the world looking to offer this product for their users. It is a very attractive proposition for the users and though it is clear that if the brokers do not earn commissions from trades, they are likely to earn revenue through other means, the retail segment does not seem too perturbed by that and has generally loved such commission-free trading apps. Robinhood in the US is a prime example of this and though its revenue generation strategy may likely be shut down by the SEC pretty soon, it still has a huge user base who are ready to forgive and forget its minor glitches and move on. This trend seems to be catching on in the UK and Europe as well.
Freetrade believes that crowdfunding helps to allow anyone and everyone to own a share of a growing company while it is also viewed as a marketing effort as it helps to create a buzz among the investors and it then helps to brand the platform through word of mouth.
Adam Dodds, CEO, and founder of Freetrade, said: “In a world awash with venture capital, it’s important to offer everyone the opportunity to invest in companies, like Freetrade, at the earliest stages and throughout their growth. As we’re about to expand into Europe, it only makes sense that we should open up this round to prospective customers and investors across the continent. Crowdfunding has given us a passionate community of shareholders who help to keep us focused on our mission to get everyone investing.”
The platform has more than 1 million registered users from the UK and this number has grown by 400% in 2021 with the funded customers also growing by more than 50% since January 2021. This shows that clients and investors are eager to trade on the platform which augurs well for its future. The crowdfunding round starts on November 24 and it will be the seventh crowdfunding round for the company.