Fintech Freetrade starts in Sweden

British fintech Freetrade announced its upcoming launch in the Swedish retail market.

They recently received regulatory approval from financial inspectionsa first step towards possible expansion into other EU countries.

free tradea seven-year-old startup with more than 1 million customers, has raised funds through a mix of investors including Left Lane Capital, L Catterton and Draper Esprit, as well as 13,000 equity crowdfunders, most notably a record-breaking crowdfunding investment by 8 million dollars in less than six hours.

“We will also change the way Europeans invest,” CEO Adam Dodds wrote.

Founded in 2016 by Dodds, Viktor Nebehaj and Davide Fioranelli, Freetrade makes investing more accessible. It positions itself as a brokerage platform, changing the “archaic and clunky” nature of how people invest.

The expansion also means users in Sweden have free access to thousands of European, UK and US stocks and ETFs. On the Freetrade website, Dodds writes that they will be adding more features and products. A notable feature will be the offering of an ISK, the Swedish version of an ISA, which will be released later this year. They have already started onboarding beta testers for the Swedish app.

Founder Adam Dodds [left] and Viktor Nebehay [right]

Speak with Maria AgbesanwaFintech growth lead at seccl, on their expansion, she emphasizes: “They are now venturing into securities lending. With margins increasingly shrinking in wealth tech and its “freemium” type business model, it’s not surprising that they’ve now embraced it.

“This shows the internal conversations they are likely having about a journey towards profitability. In reality, the practice is pretty standard, but no doubt makes some customers nervous. I appreciate that they allow existing customers to opt out until June (although they can’t trade further), but a handy FAQ page on their website isn’t enough to provide convenience. In reality, this likely helps fund their European expansion plans and maintain their commission-free mantra.”

On the Freetrade website, Dodds writes that they will be adding more features and products. A notable feature will be the offering of an ISK, the Swedish version of an ISA, which will be released later this year. They have already started onboarding beta testers for the Swedish app.

Why Sweden?

The country has a legacy for creating the most recognizable and innovative global brands such as IKEA, Spotify and H&M. Building on this, his technical reputation is highly respected with companies like Minecraft, Skype and Klarna; Start-ups worth over $1 billion – per capita about 0.8 per 100,000 people Swedish Chambers of Commercemore than any other region in the world.

Sweden’s success is attributed to the low level of regulation and simplified digital infrastructure.

The essay in the European Investment Bank’s book Stockholm: The Tale of the Unicorn Factory explains that Sweden is an innovation-driven country with many well-known researchers and scientists since the 18th century.

The tech ecosystem encourages many entrepreneurs to reinvest and supports startups early on in incubators such as the STING incubator.

As one of the most cashless societies in the world, Sweden, with its tech-savvy population and entrepreneurial ecosystem, has created a platform for fintech and new payment methods to thrive.

For Freetrade, this is just a start. They hope to expand across Europe and it will be interesting to see where they go next.

Freetrade Limited is a member firm of the London Stock Exchange and an authorized member of the Financial Conduct Authority. Registered in England and Wales.

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