> ## Content Index > Fetch the complete content index at: https://entrepreneurplus.co.uk/llms.txt > Use this file to discover other available public pages before exploring further. # How Freetrade Makes Money From Commission Free Investing - URL: https://entrepreneurplus.co.uk/how-freetrade-makes-money-from-commission-free-investing/ - Published: 2026-10-07T10:00:15.000Z - Updated: 2026-10-07T10:00:14.000Z - Description: Freetrade charges no trading commission, but its business model earns through FX fees, subscriptions, cash interest and share lending. - Author: Editorial Desk - Tags: Founder Stories Freetrade built its name on a promise: free share dealing, no commission, no catch. Eight years and one acquisition later, the "catch" is easier to see. Here's how Freetrade makes money, and how the **Freetrade business model** has shifted since IG Group bought the business in 2025. --- ## From Crowdfunded Start-Up to IG Group Subsidiary Freetrade is a London-based, FCA-regulated investment app that lets UK retail investors trade stocks, ETFs, and funds without paying commission on each trade. It was founded in 2016 by **Adam Dodds** and **Davide Fioranelli**, with **André Mohamed** joining as an early co-founder and CTO before departing in 2018\. The app itself launched later, with iOS arriving in October 2018 and Android in April 2019, after Freetrade secured its full broker licence from the FCA. Freetrade is a trading name of **Freetrade Limited**, a member firm of the **London Stock Exchange**, registered in England and Wales, and now serves over 1.6 million users. Freetrade is also no longer independent: IG Group agreed to acquire the business for £160 million in January 2025 and completed the acquisition on 1 April 2025\. Freetrade continues to operate as a standalone brand under IG's ownership. --- ## The Three Revenue Streams Behind Freetrade's Business Model Freetrade makes money through three revenue streams: foreign exchange fees on non-GBP trades, a cut of the interest earned on customers' uninvested cash and share lending, and optional paid subscription plans, rather than commission on the trade itself. That's the core of the **Freetrade business model**, confirmed on Freetrade's own site, which describes its approach as "built on three revenue streams." None of those three streams charge a user for simply buying a UK stock. That's the trick, and it's the same freemium logic used by challenger banks: give away the core product, monetise the add-ons and the float. Freetrade's revenue streams have diversified heavily since launch. Subscriptions were once the dominant line in the Freetrade business model; they no longer are, as the figures below make clear. --- ## Freetrade's Subscription Plans Freetrade's subscription plans come in three tiers, Basic, Standard, and Plus, and the free tier now does far more than it used to. As of January 2026, Freetrade moved its Stocks and Shares ISA, SIPP, mutual funds, and gilts onto the free Basic plan, which previously required a paid upgrade. Junior ISAs are also now available on the free Basic plan. | Plan | Price | FX fee | Cash interest | | -------- | ----------------------- | ------ | --------------------- | | Basic | Free | 0.99% | 1% AER up to £1,000 | | Standard | £5.99/mo or £59.88/yr | 0.59% | 2.5% AER up to £2,000 | | Plus | £11.99/mo or £119.88/yr | 0.39% | 3.5% AER up to £3,000 | Standard and Plus still earn their keep through **lower FX fees** and **higher cash interest**, aimed at investors trading US stocks or holding larger cash balances. But with the free plan now covering the ISA and SIPP, Freetrade's subscription plans have become a genuine upgrade rather than a gatekeeper to the basics. --- ## Where Freetrade's Money Really Comes From Foreign exchange fees are now Freetrade's single largest revenue line, not its subscriptions. In its **2025 financial year**, FX conversion fees rose 34% to £18.5 million, driven by customers buying more US-listed shares, while subscription revenue actually eased slightly to £6.8 million from £7.1 million the year before. The FX fee ranges from 0.99% on Basic down to 0.39% on Plus, charged whenever a customer buys or sells in USD or EUR. Freetrade also earns a share of the interest paid on uninvested cash, keeping a portion depending on a customer's plan. Since August 2024, it has run a share-lending programme with Sharegain, splitting lending revenue 50/50 with opted-in customers; this line remains small but grew fast, from £45,000 to £479,000 year-on-year. Together, **Freetrade's revenue streams** show a clear shift: the business now earns more from currency conversion than from asking customers to pay for the platform at all. --- ## How Freetrade's Revenue Has Grown Freetrade's revenue grew strongly through 2024\. On the comparable figures published by IG, revenue rose from £14.2 million in 2022 to £20.8 million in 2023 and £27.5 million in 2024\. Adjusted EBITDA improved from a £28.8 million loss in 2022 to an £8.6 million loss in 2023 before turning positive at £2.1 million in 2024\. Freetrade also reported its first positive half-year adjusted operating profit in 2024. In 2025, Freetrade's pre-tax loss widened to £24.4 million, but the figure was heavily affected by one-off costs related to the IG acquisition. Around £16 million of those costs comprised a £10.2 million loan redemption premium, £5.6 million of transaction costs and other acquisition-related expenses. Assets under administration climbed 34% to £3.3 billion over the same period, a reminder that **how Freetrade makes money** and whether Freetrade turns a profit are two different questions right now. The company has also gone through several leadership changes. Co-founder Adam Dodds announced his departure as CEO in May 2024 and was succeeded by fellow co-founder Viktor Nebehaj. Nebehaj announced his departure in February 2026 and left the board in May. Jenny Zhao took over as CEO in late May 2026 but left in August after roughly three months. Freetrade has not publicly named a permanent successor. ![Freetrade financial analysis](https://storage.ghost.io/c/05/a4/05a4a052-18ab-4836-8924-ec8b322c371c/content/images/2026/10/Golden-Hour-Financial-Workspace.png) Freetrade financial analysis --- ## Freetrade vs Trading 212 Comparing how Freetrade makes money with Trading 212 comes down to one product: Trading 212 earns a large share of its revenue from leveraged CFD trading, something Freetrade doesn't offer at all. Trading 212's current risk disclosure states that 77% of retail investor accounts lose money trading CFDs with the provider, a risk Freetrade customers simply never take on because the platform doesn't offer CFDs. | Feature | Freetrade | Trading 212 | | ----------------------- | ----------------------------- | ------------------------------------------ | | Founded | 2016 (London) | 2004 (Sofia; now UK-headquartered) | | Commission on UK shares | None | None | | FX fee | 0.99% (Basic) to 0.39% (Plus) | 0.15% flat | | Monthly platform fee | Free to £11.99 (Plus) | Free | | Stocks and Shares ISA | Free, included on Basic | Free | | SIPP | Free, included on Basic | Launched 2026 | | CFD trading | Not offered | Offered; 77% of retail accounts lose money | Trading 212 generates revenue from its Invest and Stocks ISA products through fees including its 0.15% FX charge and share lending, while its CFD business generates revenue through spreads and overnight interest charges. The **Freetrade vs Trading 212** decision therefore depends on both cost and the products you want to use: Freetrade focuses on shares, funds and other long-term investment products without CFDs, while Trading 212 offers those same products alongside the riskier CFD option. --- ## FAQs ### 1\. Is Freetrade safe to use? Yes, Freetrade is authorised and regulated by the FCA and is a member firm of the London Stock Exchange. Eligible customers may also benefit from Financial Services Compensation Scheme protection, subject to the FSCS's rules and limits; this protection does not cover losses caused by investments falling in value. Freetrade was previously the subject of FCA enforcement action over misleading social-media promotions between 2020 and 2022, a matter it has since resolved. ### 2\. What are Freetrade's fees? Freetrade charges no commission on UK share or fund dealing, but applies an FX fee of 0.99% on Basic, 0.59% on Standard, and 0.39% on Plus for trades in USD or EUR. Standard costs £5.99 a month and Plus £11.99 a month, though the ISA, SIPP, and GIA are now free on every plan. These FX and subscription fees are the clearest answer to how Freetrade makes money from everyday customers. ### 3\. Is Freetrade better **than Trading 212?** It depends what you're trading: Freetrade sticks to commission-free shares and funds with no CFD option, while Trading 212 offers a lower 0.15% FX fee but bundles in high-risk CFD trading. For straightforward long-term investing, the two are close on cost; for leveraged trading, only Trading 212 offers it. **Also Read:** [*How Vishal Marria Built Quantexa Into a $2.6bn Company*](https://entrepreneurplus.co.uk/how-vishal-marria-built-quantexa-into-a-2-6bn-company/) --- *Sources: Figures and dates are drawn from Freetrade's own website (freetrade.io), IG Group's regulatory filings and RNS announcements, Freetrade's Companies House filings as reported by Finance Magnates, Trading 212's own fee and risk disclosures, and FCA public enforcement notices. Figures reflect the most recent data available at the time of writing and may have changed since.* ***The EP+ Editorial Desk covers UK startups, founder stories, and venture capital. All editorial content is independently produced and human-reviewed before publication***