IG Group Acquires Freetrade for £160M to Expand UK Investment Market

IG Group (LON: IGG) has snapped up Freetrade, a popular commission-free investment platform, for £160 million. The deal, announced on Thursday, will be financed through IGs existing cash reserves, showcasing its financial muscle and ambition to dominate the UK investment market.

The acquisition isn‘t a done deal just yet—it hinges on regulatory approvals, which both companies anticipate clearing by mid-2025. Once finalized, this merger promises to reshape IG’s offerings and tap into a fast-growing segment of the UKs financial ecosystem.

Breon Corcoran, IG‘s CEO, didn’t mince words about the potential here. “This is a rare opportunity to strengthen IG's UK trading and investment offering and broaden our target addressable market,” he said. The UK direct investment market, growing at a steady 10 percent annually, is poised for even bigger leaps thanks to structural trends—a wave IG intends to ride with Freetrade in tow.

For IG, traditionally known for contracts for differences (CFDs) and spread betting, this acquisition opens doors to a broader audience. Freetrade will remain a “commercially standalone business,” keeping its leadership intact, including co-founder and CEO Viktor Nebehaj. Meanwhile, IG plans to pour resources into expanding Freetrades product lineup, hiring top talent, and ramping up marketing efforts over the next two years, reinvesting most of its projected profits to fuel growth.

Freetrade‘s appeal is hard to ignore. Since its launch in 2018, the platform has attracted 720,000 users and manages £2.5 billion in assets as of late 2024. With over 6,200 global stocks, ETFs, fractional shares, ISAs, SIPPs, and even UK Treasury bills, it’s a one-stop shop for modern investors. Last year alone, it raked in £27.5 million in revenue—a 32 percent jump from 2023—thanks to a smart mix of subscriptions, forex fees, and interest income.

Nebehaj sees this as a game-changer. “This is an exciting opportunity to accelerate our growth and deliver new products and features on our award-winning platform,” he said. With IG‘s backing, Freetrade’s vision aligns seamlessly with its new parent companys goals.

IG isnt stopping there. Sitting on a £638 million regulatory capital surplus as of May 2024, the firm plans to return excess funds to shareholders while extending its £150 million share buyback program. The acquisition is expected to yield a return on invested capital surpassing its weighted average cost of capital within three to five years, signaling confidence in this strategic play.

For UK investors, this deal hints at a future where commission-free trading and robust investment options converge under one powerhouse roof.