We caught up with Viktor Nebehaj, Head of Growth at Freetrade, the challenger stockbroker poised to transform the investing landscape with free trading on a beautiful app, on their new Crowdcube campaign to super-charge their growth.
"We started Freetrade to bring free stock investing to a new generation who are alienated from traditional financial services.
Right now, we think the UK investing industry is broken. Commissions and fees are high (up to £12/trade) and the big platforms are clunky, desktop-first, non-transparent and cater primarily to veteran, middle-aged investors. All of this makes it harder for millennials to invest.
This is insane when you consider that the younger you are, the better opportunity you have to compound your wealth and that millennials are about to be the beneficiaries of the biggest wealth transfer in history. The rapid success of challenger banks shows us how much appetite there is for a new relationship with financial services.
We knew that a platform built ground up with the latest technology could radically cut costs and unlock a new model for stockbroking: mobile-first, tech-led and hyper-accessible.
We’ve completely rethought the stockbroker revenue model, replacing burdensome commissions and charges on assets held, to a freemium system with free basic accounts and premium accounts for a small monthly fee.
Since we overfunded on Crowdcube in 2017, we’ve become a UK-regulated financial institution performed our first live trades and built a community of over 30,000 on our waitlist. We’ve grown from our founding three to our awesome team of twelve, drawn from companies like Google, Deliveroo and PWC.
Our app’s currently in the App Store and we’re poised to enable trading for our first intake of customers: our earliest investors!
It’s an MVP right now and it’s already far slicker and smoother than the equivalents from the competition. UK stocks and ETFs will be available from day one, and US stocks will follow soon after, all tradable with no commissions.
Looking forward, our mission is to build the world’s best stockbroker. This raise will allow us to ramp up our product development, shipping features like investment discovery tools and analytics for our customers to judge their performance.
With thousands of customers eager to use the app, we’re also going to need a world-class customer ops team to deliver service beyond expectations.
We’ve seen huge demand from Europe for Freetrade and are looking to expand as soon as possible into new markets. With our FCA passport we have no regulatory barrier to entry, but we’ll look to build local ops teams to ensure we deliver the same quality experience to all our customers, no matter where they are.
The next step is to deliver a truly game-changing crypto investing experience. As many in our generation’s first foray into investing, cryptocurrencies are an obvious move for us. We think crypto should be truly accessible through a trusted, reliable investing platform and connected to your wider portfolio.
Fintech is already reshaping day-to-day banking, now we want to transform and liberate how we manage, invest and grow our wealth.
We’re launching the round to our community on the 16th May and to all Crowdcube investors the following day.
See you on the pitch page!"
Investments of this nature carry risks to your capital. Please Invest Aware.