Freedom24 review – International broker with numerous opportunities
On this page you will find my Freedom24 experiences so far. Freedom24 gives you access to many international financial instruments. In addition, you have the opportunity to earn interest far above the average with call money (3.15%) and fixed-term deposits (up to 5.20%).
However, my main focus is clearly on CEFs (Closed-End Funds), which are still tradable here! As many investors in this field know, this is no longer the case with a lot of competitors, but it is still possible with Freedom24. Reason enough to take a closer look at this broker.
On my blog, you will also find additional tutorials about other platforms.
(Up to 20 free shares until 31.10.2024. Details of the promotion here)
Please note my disclaimer. I do not provide any investment advice or make any recommendations. I am personally invested in all the P2P platforms I report on. All information is provided without guarantee. Past performance is not indicative of future results. All links to investment platforms are usually affiliate/advertisement links (possibly marked with *), where you can benefit, and I earn a small commission.
What is Freedom24?
Freedom24* is an authorized online broker in the EU that offers a wide range of investment opportunities in over 40,000 stocks and 1,500 ETFs from leading exchanges in Europe, Asia, and the USA.
As mentioned earlier, a remarkable feature of Freedom24 is the ability to acquire CEFs and also benefit from a savings account that provides daily interest, subject to fluctuations.
The company Freedom24 is part of the Freedom Holding Corp and is listed on Nasdaq. It is operated by Freedom Finance Europe Ltd., which is regulated by the Cyprus Securities and Exchange Commission.
Additionally, the online broker is supervised by the German BaFin and the US SEC. With Freedom24, you can invest in a variety of stocks and ETFs from exchanges like NASDAQ, NYSE, CME, HKEX, Euronext, LSE, Deutsche Börse, and others.
You can always see when each stock exchange is open.
Freedom24 Review – All the important at a glance
Before we delve into the details of the Freedom24 review, here are the key facts summarized for you in one place.
| Started: | 2008 |
| Headquarters: | Cyprus |
| CEO: | Timur Turlov, Founder & CEO |
| Regulated: | Yes |
| Market capitalization: | EUR 4.5 billion |
| Security: | €20,000 deposit protection on the interest account |
| Interest Product Yield: | Up to 5.20% in EUR and up to 7.97% in USD |
| Trading Fees: | From €0.008 per share, depending on the trading plan |
| Minimum investment amount: | €150 (for the savings account) |
| Account Management: | Free |
| Investor loyalty program: | Yes, with €100,000 or more, you get an additional 0.5% interest! |
| Freedom24 bonus | Yes, up to 10 free stocks. Further information here. |
| Latest annual report: | You can find the latest reports here. |
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Investor registration
Signing up with Freedom24 is relatively straightforward and similar to any other broker:
1. Create an account by entering your email address and password.
2. Verify your identity (e.g., with your ID card, passport, or residence permit).
After registering and verifying, you’re ready to start investing in the exciting stocks you’ve added to your watchlist. Of course, you’ll also need to deposit funds to do so.
How do I deposit money?
You can make deposits on Freedom24 through your account. To do this, go to the “Deposit” section and then choose your preferred deposit method (credit card or bank transfer). Afterward, you transfer the desired amount of money.
For bank transfers, you have several options available.
How do I withdraw money?
To withdraw funds, you proceed to the “Withdraw” section. In order to take action here, you need to initiate a “secure session.” To do this, you’ll receive an SMS code on your smartphone. Then, you return to the “Withdraw” option in the menu and can specify an account where the withdrawal should be sent. Please note that Freedom24 charges 7 EUR per withdrawal request.
How long does the deposit take?
The deposit into the investment account takes 1-2 business days. However, if you use services like Revolut*, it is usually available faster. If you use the credit card deposit option, the money is available immediately.
Can I deposit and withdraw with a credit or debit card?
Yes, on Freedom24, you can also deposit new funds using your credit card. Please note that this incurs a 2.5% commission. In addition to the credit card option, you can also deposit using Google Pay.
Depositing money via credit card is not a problem on Freedom24.
The D-Account at Freedom24
In addition to its traditional broker functions, Freedom24 also offers what is known as the D-Account. This is a kind of linked savings account with an interest rate.
All amounts added to this savings account are subject to a block on normal trading. Freedom24 grants annual interest on uninvested balances without a maximum limit. However, the investment options vary.
Depending on the currency and investment period, you have different interest rates. So make sure you are well informed and up-to-date before you start. The D account is automatically available to all newly registered investors who have opened a trading account.
The advantage of the Freedom24 savings account is that interest accrues daily, which is not the case with other online brokers with a savings option.
The funds in the D-account are invested in OTC swap transactions, so it is not a real overnight money or fixed-term deposit as we know it. For this reason, the balances are only protected by the ICF up to EUR 20,000 per customer in accordance with the applicable EU regulations and not EUR 100,000. There is no difference between the D-Account and the fixed-interest investments in terms of deposit protection.
I have personally tested it with 20,000 EUR and it worked perfectly fine for me.
Here’s how the swap transactions appear.
Current rates for Freedom24 savings account
The interest rate for the savings money account is currently 3.15% in EUR and 4.83% in USD. It has also has the following features:
- Daily interest credited to your call money account.
- Interest rates change daily to reflect current market rates.
- Withdrawal possible at any time.
- No maximum investment amount required.
The call deposit account is particularly practical, for example, if you want to earn interest on dividends received rather than simply leaving them lying around. The Freedom24 savings account is linked to the EURIBOR and therefore changes dynamically.
Current rates for Freedom24 fixed-term deposits
The interest rate for the fixed-term deposit is currently up to 5.20% in EUR and 7.97% in USD. Further features of the Freedom24 fixed-term deposit:
- Fixed interest terms over 3, 6 or 12 months with bullet interest rates
- The interest rates are dynamic, but are fixed at the time the deposit is placed and remain unchanged during the selected term.
- Payout at the end of the fixed term and early payout without penalty on the original placement
- Minimum investment amount: 1000 EUR or USD
I myself use the 3-month fixed-term deposit and it has worked perfectly so far. Incidentally, the interest is credited immediately when you sign up for the fixed-term deposit, but you can only access it after the fixed period has expired.
Freedom24 fixed term accounts
What costs are incurred for Freedom24?
Account management itself is free, but Freedom24 does have a range of costs for various services. These can be viewed on the respective page to get a clear picture and make comparisons with other brokers.
Some costs can be reduced through monthly memberships. Each investor needs to calculate whether this could be worthwhile for them or not. I am currently in the free “Smart EUR” tariff, which is automatically activated.
Memberships can quickly pay off if you trade frequently.
What is the minimum investment amount for Freedom24?
There is no dedicated minimum investment amount for Freedom24. Only if you want to use the D-Account, you need to deposit at least 150 EUR/USD.
Is there an app for Freedom24?
Yes, there is an app for Freedom24 that allows you to conveniently manage your broker transactions right from your smartphone.
Can you invest money in other currencies?
Yes, on Freedom24, you can trade in multiple currencies, including the most important ones for you: EUR & USD.
You can also easily exchange currencies in your dashboard with just a click.
How does the taxation work for Freedom24?
As an international broker, Freedom24 logically doesn’t withhold taxes for you, except potentially deducting withholding tax on dividend payments. You need to take care of this yourself. The necessary information is provided by Freedom24, and you receive detailed information on every financial transaction for tax purposes. To do this, you download the “Trade Report for A Tax Return” from the member area.
Please note that at least one year must have been completed for tax purposes. If you need information on transactions prior to that, you can use the “Broker Report”.
Getting tax information is very straightforward with Freedom24.
The risk of Freedom24
Like all investments, Freedom24 carries risks! You should always keep these risks in mind.
- The deposit protection is limited!
- The company can become insolvent.
- Withdrawals may be limited, due to various reasons.
- Even if there is the D-Account, in general this is an investment and not a savings account!
To summarize once again: You can lose your entire investment!
Is Freedom24 profitable?
Freedom24 is a subsidiary of the Freedom Holding Corp., whose financial reports are publicly accessible. It’s important to review how profitability has been evolving. Recently, they have been profitable.
Freedom24 has an impressive financial statement.
What happens to my stocks if Freedom24 goes bankrupt?
When you buy stocks through Freedom24, they are held in your name at a custodian bank. This means that you are the legal owner of the stocks, not Freedom24. If Freedom24 goes bankrupt, you still have the right to your stocks and can reclaim them from the custodian bank. Your stocks are not part of Freedom24’s bankruptcy estate and cannot be seized by creditors.
However, there might be a period during which you cannot access your stocks until the bankruptcy administrator for Freedom24 is appointed. You would then need to contact the bankruptcy administrator in writing and request the release of your stocks. This process can take several months, and during this time, you would not be able to trade with your stocks.
How reputable is Freedom24 as a company?
Freedom24 appears to be a reputable online broker due to its presence and parent company, offering customers a variety of trading opportunities. However, one should also be aware that there are certain risks and drawbacks, such as the limited deposit protection. Moreover, there was also a recent report by the short seller Hindenburg Research that casts serious doubts on the integrity of the parent company.
Each investor must draw their own conclusions from this information. After my personal Freedom24 review and because of the fact, that I can transfer my stocks somewhere else if needed, the risk is fine for me.
Is there deposit protection?
Yes, there is deposit protection on Freedom24. Deposit protection safeguards customer capital against a potential broker failure. At Freedom24, customer funds are protected up to an amount of 20,000 euros, even in the event of the broker’s insolvency.
Advantages and Disadvantages of Freedom24
Before we reach a final conclusion about the broker, here’s a summary of my pros and cons based on my Freedom24 review.
Disadvantages ➖
- Controversial research from Hindenburg Research has damaged the reputation.
- No deposit protection beyond 20,000 EUR.
- The interface is not particularly beginner-friendly.
Advantages ➕
- Access to more than 40,000 stocks on over 20 exchanges in Europe, the USA, and Asia.
- A savings account (D-account) with variable annual interest and daily interest accrual.
- Regulation by 3 financial supervisory authorities in Europe and the USA.
- Closed-End Funds (CEFs) are tradable.
- Cost-effective conditions.
Conclusion of my Freedom24 review
Freedom24 is a broker that specializes primarily in trading stocks and options. For me, it came onto my radar primarily due to access to Closed-End Funds (CEFs), as I could only purchase these with the expensive broker Swissquote otherwise. Through Freedom24, I can now bypass those costs.
I now also regularly use the D-Account as an overnight and fixed-term deposit. This is definitely a good option for anyone who wants to see their broker cash earn interest and have quick access to it..
To summarize my Freedom24 review. You can expect a broker that is more suited for experienced investors who are particularly interested in exotic stocks and want to benefit from the advantages of an international broker.
However, it’s important to also consider the disadvantages of Freedom24, especially the lack of deposit protection beyond 20,000 euros and the potential fees that might not be immediately obvious.
What alternatives are there to Freedom24?
As an international alternative, I personally like to use CapTrader*, a reseller of Interactive Brokers. Here, too, you have access to many exchanges worldwide and can trade at very low costs. The only difference is that the topic of CEFs is handled more strictly there, and investment is not possible unless they come with a Key Information Document (KID) in the investor’s native language.
Then take a look at my P2P platform comparison now. There you will find more information and/or articles about the platforms where I invest.
About the author
Hi there! I’m Lars Wrobbel, and I’ve been writing on this blog about my experiences with investing in P2P loans since 2015. I also co-authored the German standard work on this topic with Kolja Barghoorn, which became a bestseller on multiple platforms and is regularly updated.
In addition to the blog, I host as well Germany’s largest P2P community, where you can exchange ideas with thousands of other investors when you need quick answers.
