Freedom24 vs Degiro — Which broker is best in 2024?
Freedom24 and Degiro are two prominent brokerage platforms, each offering distinct features and services that cater to different types of investors. Whether you should go with Freedom24 or Degiro depends on your investment style.
Freedom24 is most aligned with investors looking for a wide range of investment options and global market access, with a comprehensive trading platform. Degiro, on the other hand, is more geared towards long-term investors who don’t trade a lot and prioritize low trading costs for stocks and ETFs.
Favorite Broker = Freedom24
Freedom24 is my favorite broker of Degiro and Freedom24 for the following reasons:
- Better ratings on Trustpilot
- More sophisticated feel on the trading platform
- Highest return on uninvested funds on the D-account
- Lowest fees for US stock options
What is Freedom24?
Freedom24 is an online investment broker that allows individuals to invest in global markets, including stocks, bonds, and ETFs. It offers various account types, including 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.
What is Degiro?
DEGIRO is an online investment broker that provides access to a wide range of global investment opportunities. It was founded in 2009 in the Netherlands and has since expanded to serve customers across Europe and in a few other countries. DEGIRO offers a user-friendly platform for trading stocks, options, futures, bonds, and other financial instruments at competitive rates. The platform provides access to over 50 international exchanges and aims to make investing accessible to both retail and professional investors. DEGIRO has gained popularity for its low-cost trading, extensive product range, and user-friendly interface.
Pros and cons of Freedom24:
Here is an overview of the advantages and disadvantages of using Freedom24 as your broker:
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
Pros and cons of Degiro:
Here is an overview of the advantages and disadvantages of using Degiro as your broker:
Pros:
- Only pay a €1 handling fee for some ETFs
- The platform is known for having very low fees
- No minimum deposit for opening an account
- Provides access to a lot of global markets
- No inactivity fee for investors
- The platform is user-friendly
Cons:
- No demo account for trying the platform
- The platform offers limited research tools
- Charges connectivity fees for access to foreign exchanges
- Degiro does not support credit or debit card deposits
- There are fees associated with currency exchange
Freedom24 vs Degiro: Trustworthiness and Regulation
- Freedom24, operated by Freedom Finance Europe Ltd, is regulated by multiple authorities including CySEC (Cyprus), BaFin (Germany), and the SEC (United States). It complies with MiFID II rules, offering a high level of investor protection.
- DEGIRO is regulated by top-tier authorities like BaFin (Germany) and the AFM (Netherlands), ensuring a reliable regulatory environment.
Freedom24 vs Degiro: Capabilities and Platforms
- Freedom24 provides access to thousands of instruments including stocks, ETFs, bonds, futures, and options across major exchanges like NYSE, NASDAQ, LSE, and others. It offers a proprietary trading platform accessible via web browsers and mobile devices, with features like market depth, technical indicators, and social trading.
- DEGIRO offers a user-friendly platform, suitable for both beginners and experienced traders, with access to a broad range of asset classes including stocks, ETFs, bonds, options, and futures. However, it does not offer forex trading and has limited research tools.
Freedom24 vs Degiro: Fee structure
- Freedom24’s fee structure includes different plans like Smart and All-Inclusive, with varying commissions. Fees are based on the number of shares traded and the plan selected. It also includes fees for services like margin lending, stock options, and currency conversion.
- DEGIRO is known for its low trading and non-trading fees. There are no inactivity or withdrawal fees, but it charges for US options or futures trading and currency conversion. It has fixed commission and handling fees for trading in various stock markets.
Freedom24 vs Degiro: Market Access
- Freedom24 offers a vast range of over 40,000 financial instruments, including access to markets in the US, Europe, and Asia.
- DEGIRO provides access to more than 50 stock exchanges around the world, making it a good choice for investors looking to diversify globally.
Verdict
Both Freedom24 and DEGIRO are reputable brokers, each with its own strengths and weaknesses. Freedom24 stands out for its wide range of instruments and market access, including a proprietary trading platform. DEGIRO, on the other hand, is noted for its low fees, user-friendly platform, and broad range of accessible global markets.
Freedom24 primarily caters to investors interested in a wide range of investment options. It is suitable for both experienced traders and those new to the market, offering a vast selection of over 40,000 financial instruments such as stocks, ETFs, bonds, futures, and options.
Degiro might be more suited for cost-conscious investors, especially those focusing on stocks and ETFs. Its low fee structure makes it attractive for both beginners and experienced traders who are looking to minimize their trading costs though the platform is not the cheapest in all regards.
The choice between the two would depend on the specific needs and preferences of the investor, such as the type of instruments they want to trade, the markets they’re interested in, and their sensitivity to trading costs.
That being said, Freedom24 is currently my favorite broker as they have a very high interest in the D-account and are very customer-oriented in general.
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.
