Freedom24 Review 2024: Is the Broker Legit & Safe?
In this Freedom24 review, you can learn about the features, services, and overall reputation of Freedom24, one of the leading brokers in Europe. Whether you are an experienced trader or just starting, it is crucial to choose a reliable and safe platform to meet your investment needs.
Freedom24 impresses with high interest in the D-account, low fees for trading, and reliable customer support. But the platform has also been critiqued for a flat €7 fee for withdrawal in some Freedom24 reviews on Trustpilot and Reddit.
This Freedom24 broker review analyzes key factors such as the platform’s legitimacy, security measures, fees, product offering, and user feedback to provide you with an informed perspective on whether Freedom24 is the right fit for you.
Let’s get started and find out if Freedom24 is the ideal choice for your trading journey.
What is Freedom24?
Freedom24 is an online investment broker that allows individuals to invest in a wide range of international markets, including stocks, bonds, and exchange-traded funds (ETFs). The broker works as an intermediary between you and the financial markets.
Freedom24 provides access to more than 40 global exchanges and offers various account types, such as traditional brokerage accounts, and a savings account called a D-account.
Freedom24 was launched in 2019 by Freedom Holding Corp. which is a NASDAQ-traded company that was originally founded by Timur Turlov in 2008.
Freedom24 is a good broker for investors who want to trade stocks with low commissions. The platform aims to provide investors with easy and convenient access to international investment opportunities, diversification, and wealth management services.
Timur Turlov
Freedom24 is ultimately owned by the founder and CEO Timur Turlov. He originally started the company in 2008 before he finished college with $100,000 from his co-founders. He has roots in Russia but he has taken a clear distance from Russia by applying for Kazakh citizenship and donating $2.5 million of personal funds for humanitarian aid to Ukraine shortly after the Russian invasion.
Pros:
- Funds are insured up to €20,000
- Excellent rating on Trustpilot
- Buy stocks on +15 large exchanges
- High interest on uninvested funds (EUR = 2.5%, USD = 3%)
- €200 bonus for transferring stocks to Freedom24 from an EU broker
- Possible to deposit cash with a credit card
- Easy-to-use trading platform
- Low fees for US stock options
- Reliable customer support
Cons:
- You are required to download the app
- The interface is quite old-school
- There is no option to buy fractional shares
- Periodical server downtimes and minor technical problems
- No direct access to cryptocurrencies
- Charges a flat €7 withdrawal fee
Where is Freedom24 available?
Freedom24 is available in the European Union and a few other countries. The platform is available for investors from Austria, Belarus, Belgium, Bulgaria, Croatia, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Qatar, Romania, Slovakia, Slovenia, Spain, Sweden, Switzerland, Thailand, and UAE.
Freedom24 has offices in multiple European countries including Germany, Spain, France, Greece, Poland, and Cyprus.
What can you trade on Freedom24?
Freedom24 offers access to more than 1,000,000 securities including over 40,000 stocks, 1,500 ETFs, and more. The assets you can trade on Freedom24 include:
- Stocks
- Bonds
- ETFs
- Stock options
- Futures
It is not possible to trade cryptocurrencies, copy trade, or buy fractional shares on Freedom24.
What is the Freedom24 D-account?
The Freedom24 D-account is a savings account offered by Freedom24. This account allows investors to earn interest on their uninvested funds. It is automatically available to all investors who open a trading account with Freedom24.
Freedom24 is a good broker for savers who want to earn a high yield on their cash as they have a very high yield. The broker offers a 3% annual interest rate on US dollar deposits and a 2.5% annual interest rate on euro deposits. But keep in mind that your funds are only insured up to €20,000 according to the Investor Compensation Fund (ICF).
The interest on the Freedom24 D-account is accrued daily and provides a higher yield compared to traditional bank deposits.
To earn money from your Freedom24 D-account you must at least have $130 or €150 in your account. There is no upper limit on the amount that can be deposited into the D-account, and funds can be transferred to the trading account or withdrawn at any time.
Try a €10,000 demo account to review Freedom24
Freedom24 has a demo account that makes it possible to try out the platform with €10,000 in virtual money. If you consider Freedom24 it is a good idea to review the demo account to familiarize yourself with the platform with no commitments. To use the demo account you must simply sign up.
Rating of Freedom24’s services
- Platform: 3.5/5 stars
- Customer Support: 4.5/5 stars
- Market Access: 4.0/5 stars
- Fee Structure: 4.0/5 stars
- Trust & Safety: 4.2/5 stars
Freedom24 fees
Freedom24 has low fees for trading stocks, ETFs, and options. The exact fees may vary depending on various factors including which countries and currencies you are investing in as well as your service plan.
Freedom24 service plans
The fees on Freedom24 vary according to your service plan. Freedom24 offers the following 2 service plans:
- ALL-INCLUSIVE: $0/month
- SMART: €0/month
ALL-INCLUSIVE and SMART are both free plans.
If you are a long-term investor the most suitable plan is probably SMART as this is the standard fee plan. Here the commission is 0.02 $/€ per share for stocks and ETFs in Europe and the US + 2 $/€ per order.
There is little difference between the service plans for trading stocks outside the US and Europe.
Deposit and withdraws
Freedom24 charges a 2.5% fee for deposits via credit card. It is free to deposit money via bank transfer. Freedom24 has a €7 fee to withdraw funds. This flat fee is paid per order.
Freedom24 Trustpilot reviews
Based on over 280 reviews on Trustpilot, Freedom24 has received an excellent score of 4.3/5 stars. This makes Freedom24 one of the most highly-rated brokers on Trustpilot.
Freedom24 is praised for reliable customer support, the D-account with high yield, and more.
Some of the Freedom24 reviews on Trustpilot are more critical. The platform has been critiqued for being unavailable to UK investors after Brexit, errors in the verification process, the €7 withdrawal fee, periodical technical problems, and server downtimes causing investors to be unable to access the platform for shorter periods. Unfortunately, some of the latter cons have led to losses for some investors.
Freedom24 reviews on Reddit
In reviews of Freedom24 on Reddit, some investors point out the €7 withdrawal fee as a drawback of the platform. Freedom24 has also been critiqued for having Russian ownership on Reddit. However, the Freedom Holding Corp and the founder and CEO Timur Turlov have taken a clear distance from Russia after the invasion of Ukraine. Both Timur Turlov and Freedom Finance Europe have supported Ukraine financially.
Is Freedom24 legit or a scam?
Freedom24 is a legit investment broker owned by Freedom Finance, a NASDAQ-listed company founded in 2008. The platform is regulated by CySEC, BaFin, and the SEC.
Adding to the legitimacy of Freedom24, the broker fully complies with the MiFID II, a regulatory framework that ensures the highest investor protection level possible.
It seems unlikely that a big stock-listed and highly regulated company like Freedom Holding Corp. would be a scam.
What happens if Freedom24 goes bankrupt?
If Freedom24 were to hypothetically go bankrupt, there are processes in place to protect clients and their assets. Regulators would appoint an asset manager to oversee the bankruptcy process. Clients would then have the opportunity to request the transfer of their assets to other accounts.
The securities you buy on Freedom24 are registered in your name and not stored on the platform itself. However, the cash you have in your account could potentially be at risk in case of bankruptcy.
As an EU-regulated broker, Freedom Finance Europe Ltd. is a member of the Investor Compensation Fund (ICF). This means that if the company were to go bankrupt, clients would have the right to request compensation from the Investor Compensation Fund. Each client’s accounts are insured for up to €20,000.
Is Freedom24 safe?
Freedom24 is not 100% safe as your money is only insured up to €20,000 by the Investor’s Compensation Fund (ICF). If Freedom24 goes bust and you have more than €20,000 on your balance, you risk losing your funds.
No investment platform is completely safe and this is also the case with Freedom24. Most European investment platforms insure a similar deposited amount with the ICF.
Freedom24 has been assigned the ‘BB’ long-term credit rating by Standard & Poor’s Global Ratings. This indicates that the platform is creditworthy and a safe place to invest.
Is Freedom24 worth it?
Freedom24 is worth using for investors who want to earn a high return on their savings or trade with low commissions. The broker has a very competitive and compelling offer for investors and savers alike.
Freedom24 offers attractive interest rates on cash deposits, allowing savers to earn significantly higher returns compared to traditional savings accounts or even some other investment platforms. This makes it a good option for those looking to grow their savings over time with the D-account.
Freedom24 provides a wide range of investment options, including stocks, bonds, funds, and ETFs. This allows investors to create a diversified portfolio tailored to their individual investment goals and risk tolerance.
Freedom24 offers competitive and transparent commission rates for trading stocks and other financial instruments. This makes it an appealing choice for active traders or investors who frequently buy and sell securities.
Overall, Freedom24 is a good broker for investors seeking to earn a high yield from the D-account or trade with low commissions.
What are the best Freedom24 alternatives?
Several alternatives to Freedom24 offer similar services and depending on what kind of broker you are looking for other alternatives might be better suited for you. Some of the best Freedom24 alternatives include:
1. eToro
eToro is a great alternative to Freedom24 for investors who want to buy fractional shares or invest directly in cryptocurrencies or CFDs. eToro is a social trading platform that allows users to trade stocks, ETFs, cryptocurrencies, and more. It offers a unique feature called CopyTrading, where users can automatically copy the trades of successful traders.
2. Degiro
Degiro is a popular alternative to Freedom24 for investors who are looking for low-cost trading. Degiro offers competitive pricing and a wide range of investment options, including stocks, ETFs, bonds, and mutual funds. It also has a user-friendly platform and provides access to international markets.
See a comparison of Freedom24 vs Degiro here.
3. Interactive Brokers
Interactive Brokers is a third alternative to Freedom24. Interactive Brokers is a well-established online broker that offers a wide range of investment options and global market access. They have competitive commission rates and a user-friendly trading platform. However, Interactive Brokers has slightly worse ratings on Trustpilot than Freedom24.
Summary of my Freedom24 review
Freedom24 is a user-friendly and secure platform that offers access to +15 major global stock exchanges.
While Freedom24 lacks fractional shares and charges a flat €7 withdrawal fee, its competitive savings interest rates in USD and EUR, and robust security measures offset these minor drawbacks.
Freedom24 is highly regulated by CySEC, BaFin, and the SEC, and your funds are protected up to €20,000 by the Investor’s Compensation Fund (ICF) making it a quite safe broker. The platform is highly rated in reviews on Trustpilot.
Although Freedom24 may not be ideal for less active investors or those not requiring international exchange access, its unique offerings make it one of the best brokers for European stock traders.
Disclaimer: Investments in securities and other financial instruments always involve the risk of loss of your capital. Buying stocks at IPO prices may involve additional restrictions. The forecast or past performance is no guarantee of future results.
