Trade Republic vs Freedom24: Which broker is right for you?

1. Flash overview of Trade Republic and Freedom24

Trade Republic, founded in 2015, is a well-regulated broker under the BaFin and Deutsche Bundesbank supervision. It stands out for being indicated for long-term investors, earning interest on uninvested cash and gaining access to a debit card with a 1% saveback feature.

Freedom24, launched in 2015, as part of Freedom Holding Corp, is regulated by CySEC. The broker provides access to various financial instruments, including stocks, ETFs, and options. Freedom24 offers both web-based and mobile platforms that are more tailored toward experienced investors.

2. Product offering

Both Trade Republic and Freedom24 offer a diverse range of financial instruments, covering a wide variety of asset classes The table below summarises the products available for trading with Trade Republic and Freedom24.

If you are looking for stocks and ETFs, Trade Republic is the broker of choice (lower commissions). In case you plan on investing in bonds or options, you might consider Freedom24.

3. Trading platforms

One of the key value propositions of an online broker lies in the investment platform it provides. In this field, solid and competitive brokers tend to pursue an innovative approach in an attempt to supply investors with the best and most recent trading and decision-supporting customisable tools.

Trade Republic trading platform

Trade Republic provides an easy-to-use interface on both desktop and mobile devices. Essentially, the platforms were designed to perform an “execution only” task. So, you will not see any advanced features there (Freedom24 is better in this aspect).

Freedom24 trading platform

Freedom24’s web platform and mobile app cater to advanced traders. However, the user experience can feel slightly overwhelming for beginners due to the wide range of products and tools.

You have access to several features such as the “Trade”, “Member Area”, and “Charts”:

The demo terminal appears as soon as you complete the first step of registration (between the step when you fill your e-mail and the final confirmation with a selfie and opening a real account).

4. Interest on cash

Given the rise in interest rates, most brokers are offering clients the possibility to generate returns from their cash. Several brokers offer these rates, as you can find here. Quick summary for Trade Republic and Freedom24:

Trade Republic offers interest on uninvested cash in client accounts, only in EUR:

5. Account types

There are two fundamental types of brokerage accounts:

• Cash – where trading of derivatives and short-selling of securities is either not permitted or significantly limited.
• Margin – where trading of derivatives and short-selling of securities is widely available. It is also possible to borrow, with an associated financing cost, against your current holdings (collateral) to further expand your investment financial capacity. Margin accounts are constantly monitored for risk, and positions may be closed if the collateral value drops below a certain threshold established by the online broker. Finally, it is worth noting that this leverage may result in losses that surpass the capital invested in abrupt adverse market movements.

Trade Republic only offers a cash account. On the other hand, Freedom24 offers both a cash and margin account.

6. Account opening, cash and portfolio transfers

Account opening

Trade Republic and Freedom24 both have an account opening process that runs fully online. They both require documentation to prove ID and, address. Neither of these brokers establishes a minimum amount to be deposited to open an account.

Account opening approval is typically faster with Trade Republic, averaging one business day, whereas with Freedom24, it might take, on average, two to three business days.

Cash transfers

For both brokers, cash deposits and withdrawals are made essentially via bank transfers or credit cards, with no broker-added fees. In the case of Freedom24, you can also deposit through digital assets (USDT).

Portfolio transfers

Both brokers support transfers of existing portfolios in and out of their accounts. Currently, Trade Republic’s process seems to be more streamlined. In any case, the process of transferring securities from one institution to another should always be seen on a case-by-case basis, as it requires the two institutions to interact and analyse the assets to be transferred.

7. Pricing – trading and non-trading fees

When choosing an online broker, you often want to study the costs involved. While that is a more than fair concern, Trade Republic and Freedom24 both offer their users competitive pricing.

First, it is important to establish that there are fees for trading, where the broker charges a fee (commissions or spreads), and for non-trading services, like withdrawal or inactivity fees.

Trading fees

Non-trading fees

8. Investor security

The security of your assets is of utmost importance when choosing a broker. Besides local investor protection schemes that might be established in your country’s jurisdiction, it is important to understand the broker institution you are working with.

Trade Republic regulation and protection

Trade Republic is regulated by BaFin, the Federal Financial Supervisory Authority in Germany. However, it is supervised by both BaFin and the Deutsche Bundesbank.

In your account, you will have two types of assets: cash deposits and investment assets (excluding crypto). Each is treated differently:

• Your cash balance at Trade Republic is protected up to €100,000.
• Investment assets are under the German Deposit Guarantee Scheme, which covers losses up to €20,000 (from non-returned assets up to 90%).