Freedom24 review
7.5
(our review)
Freedom24 is an online investment platform where you can trade more than one million shares, exchange-traded funds, bonds and American options. In our latest review, it received a score of 7. We are currently most positive about the opportunities to invest in bonds on this platform.
Content:
Investing comes with risks. By trading on Freedom24, you can lose (some of) your investment.
What characterizes Freedom24?
Freedom24 is an online investment platform that, in addition to regular investment options, also offers some unique in-house products. For example, the team at Investeerders.nl was previously able to invest in IPO stock offerings from companies like Rivian and Nu Bank. It also offered a D-account with returns based on EURIBOR interest rates for a while. Both products are no longer available, but the platform now offers other interesting investment options.
At the moment, it offers ready-made selections of exchange-traded funds and bonds, with a dividend yield of up to 6 percent. Bonds provide predictable income and are less affected by market fluctuations. This makes them ideal for long-term investors looking for more stability.
Investors often compare Freedom24 with eToro, Trade Republic and Scalable Capital.
Usability
Opening an investment account on Freedom24 is relatively easy, but the platform itself can be somewhat difficult to use. It is mainly designed for investors who are already familiar with different exchanges and know what they are doing.
The staff of Investment Platforms.EU has tested investing in stocks, crypto and specific investments on this platform. In terms of user-friendliness, it is not our top choice. We are familiar with various platforms, but with this broker, we often had to search before finding the right information. However, this could be a matter of personal preference.
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 and Athen Stock Exchange. Through HKEX, users get access to shares from Asian companies.
The platform also offers analyses and reports in most European languages.
Investing in bonds
Many brokers offer shares and exchange-traded funds, or high-risk products like futures or contracts for difference. Freedom24 is a stock broker and belongs to the first group, but it goes a step further. It also offers many opportunities to invest in bonds, which is ideal for investors who are looking for products with a relatively stable return.
You can select bonds yourself based on their rating, return or term. But the platform also offers recommendations and ready-made selections of exchange-traded funds and bonds with a dividend yield of up to 6 percent per year. The minimum investment amount is 1,000 US dollars. Bonds provide predictable income and are less affected by market changes than shares.
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. 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 3.8 out of 5. Most users are enthusiastic about Freedom24, especially about its ease of use and features.
The score used to be even higher, but those reviews were placed back when the platform was still offering IPO shares. It has since then stopped offering that product, so those review scores are not really representative of what the platform offers.
Reliability
Headquartered in Cyprus, it is present in the Netherlands, Germany, Spain, France, Greece, Poland, Italy and Austria. It is regulated by CySEC. It fully aligns with the MiFID II, the European regulatory regime. As a subsidiary of Freedom Holding Corp., Freedom24 also adheres to the US SEC regulatory framework. S&P rates Freedom24 with a long-term B+ rating.
However, this means that while your money is in a European account, it is not covered by the 100,000 deposit guarantee scheme. That applies to banks only. Like other brokers, the platform offers an ‘Investor Compensation Fund’ in which all assets, both invested and uninvested, are guaranteed up to 20,000 euros.
Review score: 7
We rate Freedom24 with a 7. We see it as a good investment platform. Because of the bond recommendations, we sometimes suggest Freedom24 to people who are looking for more stable returns. If you are looking for completely stable returns, Mintos (which also offers bonds and a money market fund through Smart Cash) or the interest offered by Trade Republic are good alternatives to compare.
