XTB vs Freedom24: Which broker is right for you?

1. Flash overview of XTB and Freedom24

XTB, founded in 2002, is a well-regulated broker under several financial regulators: the FCA (UK), KNF, CySEC, DFSA and FSC. The broker’s primary platform, xStation 5, is known for its user-friendly interface, making it suitable for both beginners and advanced traders. It also stands out for its strong customer support and comprehensive educational resources.

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 XTB 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 XTB and Freedom24.

If you are looking for stocks and ETFs, XTB is the broker of choice (commission-free). In case you plan on investing in bonds or options, you might consider Freedom24, since XTB does not offer bonds and options.

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.

XTB trading platform

XTB provides an easy-to-use interface on both desktop and mobile devices. Its award-winning platform, xStation 5, is known for its simplicity, making it ideal for traders of all experience levels. Besides, the xStation Mobile makes it simpler to invest through your smartphone.

By clicking “Market Analysis”, you get valuable tools such as stock and ETF scanners to quickly select the best stocks/ETFs according to your criteria. Also, it includes several technical indicators to improve your analysis, including Fibonacci retracements, trendlines, and Elliot Waves.

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 uninvested cash

Given the rise in interest rates, most brokers are offering clients the possibility of earning money from their uninvested cash. Several brokers offer these rates, as you can find here. Quick summary for XTB and Freedom24:

XTB offers interest on uninvested cash in client accounts. It may vary between regions, but the overall rates are the following:

Freedom24 offers D-accounts and savings accounts with yields that can go as high as 5.60% in EUR and 8.00% in USD, as of October 2024.

Given the current 3.50% depository facility rate of the European Central Bank (ECB), we find it hard to justify such a high interest rate for Euros (the same could be said for US dollars). As such, we would opt for the XTB offering.

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.

XTB offers both a cash and margin account (to trade CFDs). On the other hand, Freedom24 only offers a cash account, since it has no CFD offering.

6. Account opening, cash and portfolio transfers

Account opening

XTB 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 XTB, 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, XTB’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, XTB 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.

XTB regulation and protection

XTB subsidiaries are fully supervised by top-tier regulators such as the Financial Conduct Authority (FCA), the Polish Financial Supervision Authority (PFSA or KNF in Polish), the Cyprus Securities and Exchange Commission (CySEC), the Financial Services Commission (FSC) and the Dubai Financial Services Authority (DFSA)

When opening an account, you will sign up through one of the XTB subsidiaries. Here are the main ones:

Freedom24 regulation and protection

Freedom Finance Europe Ltd is regulated by the Cyprus Securities and Exchange Commission (CySEC) under license CIF 275/15, and it is registered in several countries under the “freedom to provide services”.

In the unlikely event that the segregated assets cannot be returned to clients, Freedom24 falls under the Investor Compensation Fund (ICF), which compensates for any losses from non-returned investments up to EUR 20,000.

Please note, however, that Freedom24 is not regulated by top-tier regulators like the FCA, SEC and ASIC.

9. Customer support

If any doubt related to your trading or investment activity arises, you will certainly want to have the best possible assistance. Hence, customer service is another important dimension when choosing an online broker.

XTB and Freedom24 have comprehensive FAQ pages and make phone and email channels available to clients. It is important to highlight that not every language is supported. In this case, XTB stands out for their multilingual customer support, which is available 24/5. Freedom24 only offers customer support from Mondays to Fridays from 09:00 – 21:00 UTC+2.

XTB vs. Freedom24 – comparison verdict

To sum it up, here is our verdict:

• XTB: Best broker overall
• Freedom24: Best for the highest interest

All angles considered, XTB stands out from Freedom24 as a price-competitive, solid institution, and offering the best combination of financial instruments, tools, and solutions for the whole investment journey.

Nonetheless, if you are looking for options trading or the highest interest rate, Freedom24 would be your choice between these two platforms.