Freetrade, a challenger stockbroker that’s brought commission-free investing to the UK, has raised a $15 million Series A round, including $7.5 million from Draper Esprit.
Freetrade is making investing easy and accessible, and the company has specifically set its eyes on millennials, in an effort to solve a widening generational wealth gap. Users can buy and trade directly on the app, which is free for basic orders. That’s a world of difference compared to incumbent stock brokerage services who charge £12 per trade.
The approach seems to be working. The app’s average aged user is 30 years old, and the customer base is growing eight percent week over week.
The new funding will accelerate that growth, as the company plans to double down on engineering hires and market expansion. The service will launch to the rest of Europe soon.
Founder and CEO Adam Dodds said: “This marks a pivotal moment for us as we continue to build a smooth and cost-effective investing app in the UK and Europe. We’re thrilled to have Draper Esprit, a VC firm with similar values and who’s committed to enabling everyone to get a slice of the companies of tomorrow, join us on this journey. From the beginning, we’ve been focused on making Freetrade the home screen app for investing. With this investment, we’ll be able to level up our team and further develop our proprietary technology that will enable us to launch our new investment platform, providing users with the option to purchase not only US but UK and European fractional shares — a world first!”
Simon Cook, CEO of Draper Esprit, also commented: “Freetrade are on a mission to open up investment opportunities for everyone, as are we. In this sense, their mission is totally aligned with our own, as a rare tech-focused VC listed on the stock exchange. The company have shown exceptional growth in the short time since they first launched the platform last year. We could not be more delighted to support with Adam, Viktor, Ian and their wider team as they enable Europe’s 100 million millennials to benefit from the world’s economic growth.”