Freetrade Bolsters UK Presence with Stake Acquisition

London-based online trading platform Freetrade has announced its acquisition of the UK customer base of Australian investing platform Stake. The move, aimed at bolstering Freetrade's domestic business, comes as British digital investment platforms face rising competition from new entrants, including U.S. heavyweight Robinhood. Freetrade has agreed to take on all of Stake's UK clients and move all assets managed by the firm to its own platform.

The acquisition, financial details of which were not disclosed, will allow Freetrade to expand its customer base and increase its assets under management. As of April 2024, Freetrade had more than 1.4 million users, managing over £2 billion worth of assets for UK clients. Globally, Stake has over $2.9 billion in assets under administration, which will contribute to Freetrade's growth.


Strategically, the acquisition of Stake's UK customer base provides Freetrade with several advantages. Firstly, it enables Freetrade to tap into Stake's existing customer base, potentially attracting new clients and increasing market share. Secondly, it allows Freetrade to leverage Stake's technology and infrastructure, which may lead to cost savings and improved operational efficiency. Lastly, the acquisition strengthens Freetrade's competitive position against rivals such as Robinhood, which launched in the UK in November 2023.


Freetrade's pricing strategy and product offerings may evolve as a result of the acquisition. The company may introduce new products or services to attract Stake's UK customers and retain them on its platform. Additionally, Freetrade may adjust its pricing structure to remain competitive with Robinhood and other rivals. However, Freetrade's CEO, Viktor Nebehaj, has stated that the company is focused on scaling its business and becoming the leading commission-free investment platform in the UK market.

To retain Stake's UK customers, Freetrade must address potential challenges, such as ensuring a smooth transition of assets and providing excellent customer service. By offering a seamless integration process and maintaining high customer satisfaction, Freetrade can mitigate the risk of customer churn and maintain a strong competitive position.

In conclusion, Freetrade's acquisition of Stake's UK customer base is a strategic move that bolsters its domestic business and enhances its competitive position. By integrating Stake's UK operations, Freetrade can expand its customer base, increase assets under management, and strengthen its market share. As the UK investment landscape becomes increasingly competitive, Freetrade's acquisition of Stake's UK customer base positions it well to face the challenges and opportunities that lie ahead.