App-only stockbroker service Freetrade clinches £1.1m in crowdfunding
App will use funding to support its full launch later this year and its first full year of operations
Freetrade, an app-only stockbroker service, has secured £1.1m in its second crowdfunding campaign on Crowdcube.
The company hit 366% of its initial target of £300,000 within 12 days, bringing its total investment via Crowdcube to £1.3m in less than 10 months.
Founded in 2016 by Davide Fioranelli, Adam Dodds and Andre Mohamed, Freetrade is a mobile app that allows its users to invest in the global stock market with no commissions or fees, as well as offering fractional shares – a share of equity less than one full share. It claims to have 6,000 people on its waiting list ahead of a full launch later this year.
Basic account holders can make trades for free, while premium share dealing accounts charge a flat rate of £1 commission per £1,000 invested and premium accounts are charged for self-invested personal pensions (SIPPs) or stocks and shares Individual Savings Accounts (ISAs).
After using the last funding round to fuel the development of its app and obtain regulatory cover from the Financial Conduct Authority (FCA) as an appointed representative, this latest finance will be used to support Freetrade’s launch and first full year of operations.
Dodds said: “When I moved to London a few years ago I was astonished and shocked at how expensive and intimidating it was to become an investor. This is why Freetrade was created, to make investing in the stock market easy and affordable for everyone.”
Mohamed added: “Ahead of the launch of our app, people constantly inquire how we could possibly want to offer zero commission accounts, technology is what underpins our entire approach at Freetrade.
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“It enables us to offer a tiered system, which provides real choice, between free or premium accounts, while also ensuring we will be a profitable and growing company.”