British fintech Freetrade has announced its imminent launch in the Swedish retail market.
They recently received regulatory approval from Finansinspektionena first step towards potential expansion into other EU countries.
Free exchangea seven-year-old startup with over a million customers, has raised funds from a mix of investors such as Left Lane Capital, L Catterton and Draper Esprit, as well as 13,000 crowdfunds, including crowdfunding record. investment of $8 million in less than six hours.
“We will also transform the way Europeans invest”, wrote CEO Adam Dodds.
Founded in 2016 by Dodds, Viktor Nebehaj, Davide Fioranelli, Freetrade makes investing more accessible. It positions itself as a brokerage platform, transforming the “archaic and clunky” nature of how people invest.
The expansion also means users in Sweden will 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 offer 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.
Talk to Marie AgbesanwaHead of Fintech Growth at Seccl, about their expansion, she says, “they are now getting into securities lending. With increasingly narrow profit margins in wealth management technologies and their “freemium” type business model, it is no surprise that they have now gone for it.
“It highlights the internal conversations they’re probably having about a journey to profitability. In reality, the practice is pretty standard but no doubt makes some customers nervous. ‘here June (although they can’t continue trading) but a handy FAQ page on their site isn’t enough to reassure, in fact, it probably helps fund their plans for European expansion and maintain their no-frills mantra. committee.”
On the Freetrade website, Dodds writes that they will be adding more features and products. A notable feature will offer 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.
The country has a heritage of creating the most iconic and innovative global brands, such as IKEA, Spotify and H&M. Based on this, its technological reputation is well respected by companies such as Minecraft, Skype and Klarna; startups valued at over $1 billion – per capita, at around 0.8 per 100,000 people according to the Swedish Chambers of Commercemore than any other region of the world.
Sweden’s success is attributed to the low regulatory burden and simplified digital infrastructure.
In the European Investment Bank’s book “Stockholm: The Story of the Unicorn Factory”, the essay explains that Sweden is an innovation-driven country with many renowned researchers and scientists since the 18th century .
The tech ecosystem encourages many entrepreneurs, reinvests and supports startups very early in incubators like the STING incubator.
As one of the most cashless societies in the world, with its tech-savvy population and entrepreneurial ecosystem, Sweden has provided a platform for fintech and new payment methods to thrive.
For Freetrade, this is just the start. They hope to expand throughout Europe, and it will be interesting to see where they go next.
Freetrade Limited is a member firm of the London Stock Exchange and is an authorized member of the Financial Conduct Authority. Registered in England and Wales.
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Helen Femi Williams is a freelance journalist and podcaster interested in fintech, politics, economics and their intersections.
Prior to this role, she worked as an innovation consultant developing insurtech and fintech products and ideas for brands, startups and large corporations. She studied International Relations at the University of Nottingham (UK and Malaysia).