UK-based stockbroking platform Freetrade reported a trading volume of £3.4 billion for the 15 months ending in December 2023, marking a slight drop compared to £3.6 billion in the previous 12 months. The latest financial filing from the company covers a longer period as Freetrade shifts its fiscal year from October-September to January-December.
Positive Results Amid Challenges
Despite the drop in trading volume, Freetrade experienced a solid year in other areas. The company saw an increase in net funding of £240.2 million over the 15 months, although this was lower than the £598.4 million raised in the previous year. Additionally, Freetrade reported a net equity funds outflow of £22 billion in 2023.
“Despite ongoing macroeconomic challenges and a significant reduction in marketing expenses, the amount of cash and assets deposited by customers into Freetrade accounts grew consistently every month,” according to the company’s filing.
Growth in Assets and User Base
Freetrade reported a 30% increase in total assets under administration, driven by the growth of high-value customers. Positive equity market movements contributed £137.5 million to assets under management over the 15-month period. Furthermore, the platform saw its user base expand by 9%, reaching over 1.45 million users by the end of 2023.
Revenue Diversification Drives Profitability
Freetrade’s revenue jumped by 45% to £21.6 million for the 12 months ending December 2023, compared to the same period the previous year. This growth was attributed to the company’s efforts to diversify its revenue streams, including a 9% increase in subscription revenue, despite its commission-free trading model.
The company also made significant strides in reducing losses, cutting them by 64% to £13.9 million, compared to a loss of £38.8 million in the previous 12-month period. This was achieved through ongoing cost-saving measures introduced in the prior fiscal year, which helped Freetrade position itself as a leaner, more efficient growth business.
Freetrade continues to expand its market presence and has recently announced plans to acquire the UK customer base of its Australian competitor, Stake.
