That makes Tradestation a 
in Ā£Ā£s
Iām struggling to find total user numbers for Tradestation but they had 145,000 active users last quarterā¦ Iād say Freetrade has much more active users than that, whichever way you chose to define āactiveā.
Faster growing and 30+ years younger as a company too.
Ā£909 actually, quite a few peanuts 
Coming in a bit late to the discussion here but the question of target market is really interesting. I dont think FT should be looking to actively try and entice high net worth individuals to the platform but I do wonder about what might happen to users who do well and find themselves with massive gains. The last thing we want to see is people move from the platform when they make the big time so its a relevant question. Things like the maximum order limit and FX fees might well become an issue for someone sitting on massive gains from Tesla or GME.
You can find all the info about Trade Station deal here:
In summary:
at page 33 interesting chart about comps valuation. US brokers trade on a median of 11.2x the historical revenues
Have this from the Crowdcube link below but only uptill YE 2020 so imagine this has gone up just as much as users have provided the same amount of people are signing up for pro.
Will be way higher now. This article says over Ā£1M revenue in the month of December last year so safe to say it is in the tens of millions now.
The FTSE-100 asset manager is in exclusive discussions about taking control of Britainās second-biggest retail investment platform, with a deal possible as soon as this month, Sky News learns.
Abrdn, the FTSE-100 asset manager, is in advanced talks to buy Interactive Investor (II) for more than Ā£1.5bn ā a deal that will hand it control of one of Britainās three big DIY stock-picking platforms.
Sky News can reveal that abrdn, headed by Stephen Bird, is in exclusive negotiations to acquire II and hopes to strike a formal takeover deal within the next fortnight.
Abrdn is likely to be forced to confirm the discussions in a stock exchange announcement on Monday morning.
If successfully concluded, the talks will end IIās preparations to join rivals Hargreaves Lansdown and AJ Bell on the London stock market following months of talks about a 2022 flotation.
II has more than 400,000 personal investing clients, positioning it behind only Hargreaves Lansdown by customer numbers in the UK market.
Advertisement
It has made a string of acquisitions of its own, such as the stock-dealing platform The Share Centre, and has about Ā£57bn in assets under administration.
Isnāt that incorrect given freetradeās numbers?
Abrdn (such a stupid name!) have recently brought the Finamise newsletter so looks like theyāre making a bit of a play for retail investors.
doesnt sound right I agree
the article was from Sky news
I canāt help but read it as āa burdenā. Iām not sure thatās on brand.
So Freetrade is worth 1.5 bn x 1,100,000/400,000 = 3.75bn. Share price 42.
Good to know 
/s
Good find, this is interesting coupled with the news on II as UK mature peers are very tightly clustered around that multiple as well:
That would be very nice! Not quite that simple given II have 50x more AUM than Freetrade but an interesting comparison all the same! I personally think FT have further to go maturing the product and need to have something to offer for the wealth management end of the market before they get that type of valuation but am totally enjoying the ride.
Yes agreed - the product itself is pretty basic currently but hopefully next year big push on bringing it up a few levels
Thatās the worst analysis I think Iāve seen lol
The 1.1m are just registered users, not funded accounts
II has Ā£57bn AUA, Freetrade just hit Ā£1bn
II made Ā£76m revenue in H1 so price / annualised revenue = 10x
But II charges Ā£120 annual account fees, Ā£8 trading fees and 1.5% FX so a much more lucrative revenue model
So lots of differences that mean that analysis is pretty flawedā¦
overall I think that Abrdn is doing a good deal in buying II at Ā£1.5bn.
A revenues growth rate of 48% (registered in 2020 vs 2019) is not bad at all considering that II is a mature company
I just checked the deck from 2020 and the revised end of 2021 numbers were:
0.736m users
4.18bnĀ£ AUA
So clearly FTās projections for the average user shifted massively between the two rounds, but were not realised. I donāt know if this is low conversation rates or the meme stock demographic shift, but itās pretty stark. ~18months ago they were anticipating Ā£5.6k / user by now, 6X the real figure. I wonder how theyāll revise the future guidance in the next deck and if the revenues will keep up.
