How to invest in the S&P 500 on Freedom24 (step-by-step)

Pick an ETF tracking the S&P 500

It is impossible to directly buy the S&P 500 index. However, you can invest in it through an instrument replicating every movement, like an Exchange-Traded Fund (ETF).

The table below shows five S&P 500 ETFs you can buy on Freedom24. If you want to see every S&P 500 ETF available to Europeans (some may not be on Freedom24), you can search on justETF.com. We believe this list is enough to start with:

Please note that the iShares EUR Hedged ETF is protected against movements in the EUR/USD exchange rate, which comes at a higher cost.

We would recommend SPYL for these reasons:

1. It presents a total expense ratio (TER) of 0.03%, which is considered very low. Just to give an idea, €100 invested in any of those ETFs would only cost you 3 cents per year.
2. The replication method is “Physical”, meaning that the fund holds the underlying shares.
3. The use of income is “Accumulating”, which means that dividends are reinvested inside the ETF, which might be good for tax purposes, depending on your country.
4. The unit price is low (around €17 in October 2026), which makes it accessible, especially as Freedom24 doesn’t offer fractional ETF purchases.
5. The assets under management (AUM) are high, at more than $45 billion across the fund, so it is very unlikely to be closed down.

Still, if you want to explore more S&P 500 ETFs, type “S&P 500” in the Freedom24 search bar:

Place a buy order

Let’s say you have decided to invest in the SPDR S&P 500 UCITS ETF (SPYL). The process is the same for the other ETFs.

• Search and select the chosen ETF using the ticker symbol:

• Click on “open a session” to log in securely to the trading area with your smartphone:

• Select the “Price” (a market order in our case) and the number of shares (we selected 5), and click “Place Buy order”:

A new window will appear to “Confirm purchase”:

• Order is placed

Once you click on “confirm purchase”, you will see that your order has been filled:

And that’s it! You are invested in the S&P 500!

You can check your open position in your personal dashboard:

All the fees when buying an S&P 500 ETF on Freedom24

When you buy an S&P 500 ETF, you pay execution fees, as shown on Freedom24’s pricing page:

Since I am on the “Smart” plan, I paid €2 per order plus €0.02 per share, so €2 + (€0.02 × 5) = €2.10. Freedom24 currently offers two EUR plans, Smart and All inclusive, and you can change plan in your account settings:

Freedom24 fees in practice

On the Smart plan, the €2 fixed fee per order weighs more on small purchases. For example, buying €1,000 of SPYL at about €17 per unit (58 units) costs €2 + (€0.02 × 58) = €3.16, or about 0.32% of the amount invested. A €100 purchase (5 units) costs €2.10, more than 2%.

If you invest regularly, Freedom24’s Recurring Investment Plan lets you buy ETFs automatically every week or month, paid by card, with 0% commission on both the top-up and the purchase. Purchases are made at the previous trading day’s closing price, fractional units are not supported, and bank or payment-system fees may still apply. Check which ETFs are eligible on Freedom24’s ETF Investment plan page.

What to look for in any ETF?

Not all ETFs are created equal. Different asset managers provide different ETFs tracking the same indices (like the S&P 500). The main differences are:

1. Fees (TER)

Asset managers like BlackRock (iShares) or Vanguard don’t offer ETFs for free, as they have costs too. Throughout the year, a small fee is taken from the fund’s assets. A lower fee means lower costs for you and, all else equal, higher returns. Asset managers often list the overall cost of the fund. Ongoing charge (OCF) or total expense ratio (TER) are standard terms for this overall management fee.

Using the iShares Core S&P 500 UCITS ETF (SXR8) as an example, you can check its TER of 0.07% in the factsheet:

2. Replication method

It can be done in two ways:

• Physical replication ETFs means the ETF will try to buy the underlying assets laid out in the index.
• Synthetic replication ETFs means that the ETF uses financial derivatives to replicate the performance of the index.

The underlying companies comprising the S&P 500 are very liquid, and thus physical replication is preferred as it does not incur any additional costs or risks related to derivatives. Using the same ETF, you can see its methodology as “Physical Replication”:

3. Use of income

Apart from their product structure, the ETFs also distinguish between themselves in the following terms:

• Accumulating ETFs where the ETF reinvests the dividends it receives from the companies included in the index that decide to make that distribution. This will dictate a higher price for the ETF when compared to an identical distributing ETF, and, in some countries, it is tax advantageous because since the dividends are kept inside the ETF, you are not required to declare that amount.
• Distributing ETFs gives you on a regular basis (usually quarterly) the dividends that companies distribute. So, you will receive that amount directly in your brokerage account. Here, you will have to declare the dividends received.

Which one is better? There is no “correct” answer. It all comes down to your preferences. Do you plan to withdraw your investment in a 20-year time horizon? Maybe an accumulating ETF does a better job. Do you want to earn some regular income? Well, in that case, a distributing ETF will be the most appropriate choice.

The SXR8 is “Accumulating”:

4. Size

The overall fund size should also be taken into consideration. The size of an ETF can impact the likelihood of fund liquidation. Smaller funds generally run a higher risk of being liquidated than larger funds. In such a case, the fund will sell all its holdings, settle obligations and distribute the remainder to the fund holders.

The SXR8 had net assets of about $161.5 billion in October 2026:

5. Hedging

ETFs can use financial derivatives to protect against currency fluctuations. This comes at an additional cost but might protect you against large currency swings. Apart from the iShares EUR Hedged ETF, the ETFs in our table are “unhedged”, since we believe currency fluctuations tend to even out over the long term.

Bottom line

To sum it up, here’s what you need to do:

1. Pick an ETF tracking the S&P 500: compare the TER, replication method, use of income and fund size.
2. Open an account and deposit money with Freedom24: go through the account opening process and fund your account.
3. Send a buy order for the ETF you picked: search for the ticker, choose the order type and quantity, and confirm. If you invest every month, consider the Recurring Investment Plan.

We hope that this post addressed some of your concerns. Make sure to do your own research to find out the best investing strategy for you!