Freetrade, which is establishing itself as a commission-free brokerage platform in the UK and Europe, has published a consolidated report of its business for the financial year 2021, which ended on 30 September.
The trading platform generated revenue of £12.7 million for the 12 months. It was 647 percent higher than the revenue of £1.7 million it brought in the previous year.
The revenue was pushed higher as the trading volume in the period tripled. It came in at £3.3 billion, 313 percent higher than FY2020. Additionally, the app-based broker enhanced its service in the year by adding new stocks, exchange-traded funds and investment trusts.
Freetrade is primarily based in the United Kingdom but is now expanding its footprint within the European Economic Area. It has already entered multiple European countries with plans for further expansion.
Users Exploded
In addition, the company added 637,895 new traders to its trading platform , ending the financial year with a total of 886,743 clients. It was a yearly increase of 256 percent. On top of that, it revealed that by the end of 2021, outside of FY2021, the number of users on the platform crossed 1 million.
“There has been a strategic investment in marketing activity to drive the strong levels of new customer growth in the year, including brand awareness campaigns,” Companies House filing stated.
Moreover, the asset under administration on the platform increased by 260 percent to £897.5 million.
However, the brokerage startup is burning money, which comes at the cost of the growth of such companies. The pre-tax loss of the broker for the fiscal year almost doubled to £18.2 million from the previous year’s £9.5 million. However, it detailed that the administrative cost skyrocketed due to the increase in headcount and investment in product and engineering-related functions.
Meanwhile, Freetrade has closed a £30 million funding round recently through a loan agreement. The company was valued at £650 million in its last equities funding round in November.
