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Freedom24
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Updated on Apr 18, 2024
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[Warning: On August 2023, Hinderburg Research released a report about Freedom Finance, the parent company of Freedom24. It comprises serious allegations, including “Brazen Sanctions Evasion, Hallmarks Of Fabricated Revenue and Risky Bets with Commingled Customer Funds”. One day later, Freedom Finance released a response. As such, we advise you to reconsider whether or not you should open an account with them. Please check other alternatives.]

Hello, fellow investor! We will review Freedom24 to help you decide whether it is the right investment platform for you.

Freedom24 may be suitable for people wanting daily passive income from uninvested cash and low commission on stock and ETF trading. On the downside, it charges €7 per withdrawal and presents an above-average currency conversion fee.

Founded in 2015, Freedom24 offers to its 400,000+ worldwide clients 40,000+ stocks, 1,500+ ETFs, 800,000+ US Stock Options, and 145,000+ bonds on the largest exchanges in Europe, Asia, and the US.

Freedom24 may be suitable for people wanting to receive daily passive income from uninvested cash and low commission on stock and ETF trading. On the downside, it charges €7 per withdrawal and presents an above-average currency conversion fee.

Founded in 2015, Freedom24 offers to its 400,000+ worldwide clients 40,000+ stocks, 1,500+ ETFs, 800,000+ US Stock Options, and 147,000+ bonds on the largest exchanges in Europe, Asia, and the US.

Overview

Established in 2008, with 400,000+ worldwide clients and a 4.0 out of 5 rating on Trustpilot, Freedom24 continues to show its mark. You can invest in stocks, ETFs, bonds, futures, and US options at the lowest price in Europe, and it gives you access to several international markets such as NASDAQ, NYSE, CME, HKEX, LSE, Deutsche Börse, and KASE.

Freedom24 provides several financial services, including the traditional broker service, as seen in its competitors like eToro or DEGIRO! The platform also offers fixed-income savings plans that let you earn high interest on uninvested cash (up to 6.42% in EUR and up to 8.78% in USD). In this regard, it sets itself apart from its competitors.

To begin trading, customers can choose one plan in EUR (“Smart”) and one in USD (“All-inclusive”) that fits their trading style and goals. The fees on the “All-inclusive” also include a “Personal Manager”.

Also, the InvestIdeas blog from award-winning Freedom24 securities analysts, which includes actual recommendations and financial forecasts, is a helpful tool for beginning (and experienced) traders.

Freedom24 investideas

In terms of security, Freedom24 must report to several entities through its holdings and subsidiaries: Securities and Exchange Commission (SEC) in the US, the Cyprus Securities and Exchange Commission (CySEC) in Cyprus and the Federal Financial Supervisory Authority (BaFin) in Europe.

Freedom24’s customer service is ready to help new traders with their questions and requests for advice on investments in specific areas. The customer service can be reached by phone call, secure e-mail, live support chat, and social messaging applications, depending on the customer’s geographical area.

Customer support

Highlights

🗺️ Supported countries +30 countries, mostly European
💰 Stocks and ETFs fees From €/$0.02 per share (min. €/$2)
💰 Currency conversion fee ~2%
💰 Inactivity fee €/$0
💰 Withdrawal fee €7
💵 Minimum deposit €/$0
📍 Products offered Stocks, ETFs, Bonds, Futures and Options
🎮 Demo account Yes
📜 Regulatory entities CySEC

Pros and cons

Pros

  • Low commissions on stock and ETF trading
  • No minimum deposit for general trading
  • Demo trading
  • Daily interest on uninvested cash in EUR and USD up to 6.42% and 8.78%, respectively
  • Slick, modern, and easy for anyone to use
  • No custody fee

Cons

  • €7 per withdrawal
  • High currency conversion fee
  • No cryptocurrencies

Account opening

You can open a Freedom24 account in a matter of minutes (2-15 minutes for validation) once you supply your personal information. This will let you immediately try out their Demo trading platform to test its functionality.

Here are the steps required to open an account:

  1. Sign up;
  2. Fill your tax residency;
  3. Sign the agreement.
Freedom24 account opening

Freedom24 has no minimum deposit amount for stock, ETFs, bonds, and options trading.

There are two different deposit methods available to clients: Credit Card or Bank Wire Transfer. Credit card funds will appear on your account immediately. A Bank Wire Transfer usually takes up to 3 business days.

Deposit options

To withdraw, you will be asked to fill in the details of your banking information (IBAN, Beneficiary Account Number, SWIFT,…):

Deposit and withdrawalithdrawal

Trading platform

If you want to invest via Freedom24, you have two options – web version or through the mobile app. Both trading platforms are adequate for executing trades. They are well designed and intuitive, but lack customization options.

Starting with the web version, after login, you will notice a straightforward summary of your account:

Dashboard

This overview is enough for most investors (we value platforms that state the information in a simple manner). From there, you have access to several features such as the “Trade”, “Member Area”, and “Charts”:

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 selfie and opening real account). However, if the real account is opened, the terminal becomes real. You can register another “unconfirmed” account if you want to continue “real trading” and “demo trading” in parallel.

Trading platform

For security reasons, some accounts requests are “blocked”. To unlock, you will receive an SMS message on your mobile phone to ensure it is you (note: this has no cost! You will understand why we mention it as soon as you get to the “Fees” section).

The mobile app works in the same logic as the web version, which makes it a perfect alignment with the web version:

Mobile app overview

Products and markets

Freedom24 offers thousands of trading instruments, including stocks, ETFs, bonds, futures, and options on major American, Asian, and European exchanges (NASDAQ, NYSE, CME, HKEX, LSE, Deutsche Börse). From growth to value stocks, dividend aristocrats to oil companies, you have plenty of variety in which investment to choose from.

Freedom24 offers two service plans with different costs: Smart in EUR and an all-inclusive plan in USD.

Finally, the platform also provides fixed-income savings plans that let you earn high interest on uninvested cash (up to 6.42% in EUR and up to 8.78% in USD).

High-yield savings plans

Fees

Freedom24 offers two pricing structures: “Smart in EUR” and an “All inclusive in USD”.

Service plans
Smart in EUR

You have no monthly fee, $/€0.02 of commission per share in stocks and ETFs in the US, Europe, and Asia (with a minimum of $/€2 per order), 0.25% commission per share in stocks and ETFs from Asia (with a minimum of 10HK$ per trade), US stock options per contract of $0.65, and, as an optionality, SMS notifications (transactions and alert notifications) for €0.05 each.

All inclusive in USD

This pricing plan is the only one in USD. You have no monthly fee, with trade commissions of 0.50% of the trading value + $/€0.012 of commission per share in stocks and ETFs in the US and Europe, 0.25% commission per share in stocks and ETFs from Asia (with a minimum of 10HK$ per trade), US stock options per contract of $3 (min. of $10 per trade), SMS notifications (transactions and alert notifications) and access to a personal manager.

For more details on the fee schedule, please visit this page.

Here, it is vital to know how much you expect to be trading and in what currency. We decided to do some calculations to see how much you are expected to spend within a particular plan. To make it simple, we assume that you will be trading stocks and ETFs in the US and Europe. Our results:

Trading costs

Besides these fees, there is another set of fees that are the same across all service plans, namely:

  • Margin Lending: From 0.04109500% per day. When you decide to leverage your investments, you will pay a daily lending rate based on the amount leveraged.
  • US Stock options per contract: From $0.65
  • Withdrawal via bank transfer: €7

Finally, whether your base account is in EUR or USD, you need to be aware of the currency conversion fees. On the 7th of April 2022, at 4.20 p.m, the USD/EUR was quoted at 0.9169 (0.9169 EUR per 1 USD). At the same time, the purchase and sale price in Freedom 24 was 0.9272 and 0.9069, meaning a spread of roughly 2.19%.

In order words, if you want to purchase a US stock using EUR, you will need to convert your EUR at 0.9069 and, if you decided to instantly convert again to EUR, you would get back your EUR at 0.9272. It would translate to an immediate loss of 2.19%.

Currency conversion

Safety and regulation

Freedom Holding, the parent company of Freedom Finance Europe Ltd, which operates Freedom24, is supervised by the SEC. At the same time, 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”.

Freedom24 clients’ assets are segregated into separate entities[1] and thus protected against insolvency. 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.

Freedom24 only acts as an intermediary between you and the stock exchange, meaning that the stocks you buy are yours. Still, in an extreme bankruptcy scenario, the regulators would assign an asset manager, after which the clients would be able to request to transfer their assets to another broker.

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

Public company details

Freedom24 is the online trading platform of Freedom Finance Europe. And Freedom Finance Europe is an EU-based subsidiary of Freedom Holding Corp, listed on the NASDAQ. Public companies are subject to rigorous disclosure laws regarding the financial condition, operating results, management compensation, and other business areas. This means that it is much higher scrutinized when compared to a private company.

Moreover, since their financial statements are displayed to everyone, it brings an additional layer of trust because we can follow their financial situation transparently, and that’s precisely what we have been doing. Looking at the last 10-Q (December 2023), we notice a massive increase in “net gain on trading securities” compared to the same quarter of last year:

Income statement - 10Q - 4ºQ 2023

The portion of “Trading Securities” in the Balance Sheet is relatively high when compared to the items “Cash and cash equivalents” and the “Shareholders’ Equity”. This means that the Freedom Holding corporation may be sensible to market risk:

Trading securities - 10Q - 4ºQ 2023

Apart from the stated above:

  • Freedom Holding Corporation has a “B” long-term credit rating assigned by Standard & Poor’s Global Ratings.
  • Fully compliant with the MiFID II, a European regulatory framework that ensures the highest investor protection possible.
  • Member of the Association for Financial Markets in Europe (AFME).

[1] Example: securities bought in US stock exchanges are allocated with LEK Securities, which has accounts in DTC, a US-based depository. Securities bought over the counter in Eurobonds are settled by and stored at Unicredit with Euroclear accounts in the EU.

Supported countries

Freedom24 accepts clients from the following countries:

  • Austria
  • Azerbaijan
  • Belarus
  • Belize
  • Belgium
  • Bulgaria
  • Croatia
  • Czech Republic
  • Denmark
  • Estonia
  • Finland
  • France
  • Georgia
  • Germany
  • Greece
  • Hungary
  • Ireland
  • Iceland
  • Italy
  • Liechtenstein
  • Lithuania
  • Luxembourg
  • Latvia
  • Kazakhstan
  • Malta
  • Moldova
  • Netherlands
  • Norway
  • Poland
  • Portugal
  • Qatar
  • Romania
  • Slovenia
  • Slovakia
  • Spain
  • Sweden
  • Switzerland
  • Thailand
  • Ukraine
  • Russia
  • United Arab Emirates

In the United Kingdom (UK), Freedom24 is temporarily not accepting new customers due to the new regulatory framework. The company is working with the Financial Conduct Authority (FCA) to reopen its activity in the UK, but no approval has been given yet.

Bottom line

Every trading platform has its pros and cons, and Freedom24 is no exception. One of Freedom’s biggest strengths is its ability to minimize the fee structure without compromising on the services it offers.

Freedom24 trading platforms, both PC and mobile, are well-designed and simple to use. It offers a “demo trading” and it can be a good choice for investors looking for a low-cost trading platform.

Disclaimer

Investments in securities and other financial instruments always involve the risk of loss of your capital. The forecast or past performance is no guarantee of future results. It is essential to do your own analysis before making any investment. If needed, you should carefully seek independent investment advice from a certified professional.

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About the author
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Franklin Silva
Co-Founder & Fintech Analyst

Franklin has three years of experience in Wealth Management as a Fund Research Analyst, has passed the CFA level II, and is the host of the "Edge Over Hedge" YouTube channel.