Freetrade revenue soars as platform launches share lending
Revenue at investment platform Freetrade spiked 34 per cent in the first half of the year, bringing in £233m in new cash to the stock trading website.
The group reported £2.5m in cost savings in its half-year results, moving it into profitability after losing £5.6m in adjusted operating profit during the first half of last year.
This year, adjusted operating profit came in just over the line into the black at £91,000.
The group’s net flows of £233m were up 87 per cent on the first half of last year, and were the primary driver of the improving performance for Freetrade.
Last month, Freetrade launched a share lending service, meaning investors are now able to lend their shares to short selling.
The service isn’t offered by most mainstream platforms like Hargreaves Lansdown and AJ Bell, as it has some downsides, like risks if the borrower defaults and losing share voting rights.
However, Freetrade said it would hold a collateral of safe assets like cash or bonds worth at least 105 per cent of the value of the shares on loan, and the platform said it would make up the difference if the collateral proved insufficient.
Viktor Nebehaj, CEO of Freetrade, said: “As I reflect on my first three months as CEO, there is an incredible opportunity for us to transform Freetrade into a leading self-directed investment platform in the UK. We have the people and purpose-built tech that positions us to transform how individuals manage their life savings.
“Our pace of execution has accelerated meaningfully, while the team has remained lean and efficient. We have shipped flexible stocks and shares ISAs, tax-wrapped Treasury bills, the web platform for all users, share lending, and a rebrand that reflects the maturity of the product.
“But we’re not stopping there. We’re just scratching the surface of a rapidly changing investment platform market in the UK and we are positioned to seize opportunities to take our growth to the next level.”