Freedom24 review
7.5
(our review)
Freedom24 is a NASDAQ-listed online trading platform. Users can trade more than a million stocks, ETFs, futures and options on US, European and Asian stock exchanges. In our latest review, it scored a 7.5, mainly because of its saving products. Users automatically get a savings account, with high interest rates.
Content:
Investing comes with risks. By trading on Freedom24, you can lose (some of) your investment.
What characterizes Freedom24?
Freedom24 is an online trading platform that quickly gained popularity when it started offering IPO shares. Because of that, our editorial staff was able to invest in the initial public offerings of shares from the likes of Rivian and Nu Bank, when they first became listed on the stock exchange.
The platform has ceased offering that product on now focuses on European savings. Besides investing, you can receive high interest rates on your savings on Freedom24.
Usability
Opening an investment account on Freedom24 is relatively easy. But after that, the platform itself is a bit tricky to use. It mainly targets investors who are already familiar with exchanges and know what they are doing. If you only want to use the platform for the savings account, it is easy to use.
We have tested out investing, saving and making some specific investments. In terms of ease of use, we do not have a preference for this platform. We are familiar with the workings of investment platforms. Still, we needed to take our time searching for the right information on this one. However, that is of course, our own opinion so perhaps other users feel differently.
Extra information on investing
In May 2024, the platform launched its own Academy with guides and information about investing. It is aimed at both first-time and experienced investors. It includes tutorials on, for example, how to get started investing in options. It also has tutorials on which reports other investors use when making their decisions.
At the time of writing this review, all explanations in the Academy are only available in English. In addition, as a starter, you can only read the introductory texts. To go to the following lessons, you must be logged into a Freedom24 account.
Product offer
By opening a brokerage account on the platform, you can invest internationally without any minimum deposits. You can invest in stocks, bonds, options, and ETFs (tradable funds) of (state-owned) companies on various stock exchanges worldwide. This means that you can easily invest in companies in America, Europe and Asia.
Freedom24 has a mobile app, but it seems to focus on investors who trade with the desktop application. Customers have access to around one million financial products in total. Most of these products are based in the US-market, as there is a high demand.
US-based stock markets are, for example, NASDAQ, NYSE, CME, and AMEX. European stock markets which are listed on the platform are LSE, Deutsche Börse, Athen Stock Exchange and MOEX. Through HKEX, users get access to shares from Asian companies.
The platform also offers analyses and reports in most European languages.
Crypto currencies and other high-risk products
Currently, Freedom24 offers 11 listed Bitcoin ETFs and similar listed products. It charges 2 euros per transaction and 0.02 euros per ETF. You do not need to have a crypto wallet to buy them. You do need to follow the following steps:
- Step 1: Open an Investment account on Freedom24 and log in.
- Step 2: Choose Trade and then choose either the European or American stock market.
- Step 3: Choose the option Funds.
- Step 4: Choose the fund you want to invest in. Popular funds are IBIT, ARKB, FBTC or GBTC.
- Step 5: Read and accept the KIT (Key Information Document), determine the amount you want to buy and choose your order type (market or limit).
In addition to Bitcoin ETFs, the platform also has news or recommendations about new products. Users can make an average return of 21 percent when using these recommendations, according to Freedom24. However, you do not have to follow these recommendations. You are completely free to choose your own investments.
Savings interest rate on non-invested balances
In addition to the many options to invest in, the platform also offers the possibility to save money. For many users, this is the main reason they create an account on the platform. They receive a savings interest on uninvested balances. On euros, users receive 3.88 percent, while they receive 5.31 percent on balances in US dollars.
Interest rates are linked to SOFR and EURIBOR, which are interbank rates. The platform really wants to offer the best interest rates. On fixed rate bonds (savings accounts for a fixed period), interest rates rise further depending on the amount you deposit and the period you hold it for. For a deposit of 100,000 euros or more and a 12-month period, you currently get 8.76 percent per year in dollars or 6.41 percent if you save in euros.
Freedom24 pricing rates
As of February 2024, Freedom24 operates with two packages:
Smart package: for savers and investors with small funds, the Smart package is most suited. It does not charge fixed monthly fees. This is ideal if you use the platform for the savings interest rate. If you do invest, you also pay a commission per share, as well as transaction fees and other fees.
Fees for US or European stocks and ETFs are 0.02 dollar or euro per share, plus 2 dollar or euro per order.
All Inclusive in USD: in this package, Freedom24 offers personalized support and recommendations. The platform also does not charge fixed fees in this package, but it does charge a percentage commission for stocks and ETFs. Trading in options is also more expensive with this package.
For ETFs and stocks in the US or Europe, the fee is 0.5 percent. It comes with an additional 0.012 per share or ETF. Per order, users pay 1.2 dollars.
User experiences with Freedom24
Online, you can find a lot of reviews about the platform. On Trustpilot, it is rated an 4.7 out of 5. Most users are enthusiastic about Freedom24, especially about its ease of use and features.
Most reviews were placed back when the platform was still offering IPO shares. It has since then stopped offering that product, so reviews are not really representative of what the platform offers.
Reliability
Freedom24 already has offices in the Netherlands, Germany, Spain, France, Greece, Poland and Cyprus. With over 2,500 employees, the holding is not a small player of the finance world. It has over 350,000 customers and a market capitalization of around 4.3 billion dollars.
All assets on Freedom24, invested and uninvested, are guaranteed up to 20,000 euros
The parent company of Freedom24 is called Freedom Holding Corp. It was founded in 2008 by Russian businessman and billionaire Timur Turlov. The platform offers an ‘Investor Compensation Fund’ in which all assets, both invested and uninvested, are guaranteed up to 20,000 euros.
This is not uncommon among online brokers. However, this means that while your savings are in a European account, they are not covered by the 100,000 deposit guarantee scheme. That applies to banks only.
Review score: 7.5
We rate Freedom24 as a more than satisfactory investment platform. Due to the high interest rates on uninvested funds, the platform even gets a 7.5 (out of 10) from us in our latest review. The savings interest rates are higher than what we see on other platforms and also well above European banks.
Since 2023, interest rates have increased sharply among other European banks. In that year, the platform also grew with thousands of new users from the Benelux, representing a local growth of 162 percent. Even specialized parties like Raisin or Santander offer lower interest rates. However, your savings are better protected at these banks because of the deposit guarantee scheme. With stock brokers, like Freedom24, balances up to 20,000 euros are guaranteed.