RECOMMENDED FOREX BROKERS
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
Freedom Finance is the European division of a US-based broker offering trading with stocks, ETFs and bonds. Registration in Cyprus means that the broker operates under MiFID II rules, which is a legislative framework with high levels of investor protection. If you are a resident of the European Union and intend to trade in such financial instruments, a broker like Freedom Finance will give you the highest level of transparency and security.
FREEDOM FINANCE REGULATION AND SAFETY OF FUNDS
The freedom24.com online portal is a project of Freedom Finance Europe Ltd., the European subsidiary of public holding Freedom Holding Corp – a U.S.-based corporation with a market capitalization of $3.8 billion. Freedom Finance points as its advantage that it is the only Nasdaq-listed European broker. However, it is regulation and the associated guarantees and protections that are of primary importance to Freedom Finance clients.
Freedom Finance Europe Ltd. is regulated by the Cyprus Securities and Exchange Commission (CySEC) under license CIF 275/15. The data listed on the broker’s website matches the data on the Cyprus regulator’s register. You should always verify that the details provided by the broker are correct because the online space is full of fake brokers, some of whom illegally use the details of legitimate companies.
For the traders there are many advantages to working with brokers based in Cyprus, because they must comply with all the requirements of the European Securities and Markets Authority (ЕSМА). These brokers must maintain a minimum net capital of at least EUR 730 000, which guarantees that the company is financially stable and has a serious long-term approach. Whenever clients deposit money in their trading accounts, it is kept segregated from the broker’s operating funds in separate bank accounts. Thus the clients’ money remains shielded in case of mishaps like a broker’s bankruptcy. All brokers licensed in Cyprus are members of the Investor Compensation Fund, which may cover a maximum of EUR 20,000 per person in the event of broker insolvency. Cypriot forex brokers are required to report their clients’ transactions on a regular basis. This requirement is designed to improve investor protection and promote market integrity and transparency.
FREEDOM FINANCE TRADING SOFTWARE
Freedom Finance uses proprietary web-based trading software as well as its own mobile app. Registration of an Freedom Finance account requires verification of a phone number and providing a copy of an ID. But the functionality of the trading platform can be tested through a demo version freely available on the website.
The platform allows easy and quick navigation between stock exchanges in the US, Europe, Russia and Hong Kong, as well as search through the available shares and funds. The platform also provides organized information on account balance, trade history, pending orders, etc., as well as a chart with a large number of technical indicators. But it lacks the more advanced functionality found in the most widely used trading platforms in the industry, MetaTrader 4 (MT4) and MetaTrader 5 (MT5). These platforms have established themselves as industry standard because they offer a wide range of features, including a variety of options for customization, multiple account usage, designing and implementing custom scripts for automated trading and backtesting trade strategies.
FREEDOM FINANCE TRADING CONDITIONS
Freedom Finance offers three basic service plans – Smart, Fix and Super. The monthly fee is respectively 0 EUR, 10 EUR and 200 EUR. In addition to this, new customers can take advantage of a 30-day promotion where they pay no commissions per share traded and no SMS notification fees. After the expiry of the promotional period Promo accounts are automatically converted to Smart.
The Smart Account pays 0.02 EUR /USD per share traded plus a minimum of 2 USD/EUR per order. In the case of the Fixed Account, the commissions are reduced to 0.12 EUR/USD and 1.2 EUR/USD. The Super Account pays 0.008 EUR/USD per share. When trading US commodity options, all accounts pay a commission of 0.65 USD per contract.
Over-the-Counter (OTC) trading has an additional brokerage commission of 0.12% of the traded volume, as well as depository commission of 30 USD per trade.
Freedom Finance offers another type of investment service. Customers can invest their money in a fixed income sub account, or “D-account”. Every business day, clients’ funds from D-accounts are invested in accordance with client’s instructions via currency swap transactions. At the time of writing this review, Freedom Finance states that this provides a fixed return of 3% per annum but reserves the right to change this interest rate.
FREEDOM FINANCE DEPOSIT/WITHDRAW METHODS AND FEES
Freedom Finance uses only basic payment methods – credit/debit cards Visa and MasterCard, as well as bank transfer. There are no deposit fees, but when withdrawing funds via bank transfer the customer must pay a fee of 7 EUR. The website and legal documentation do not indicate a set minimum and maximum deposit and withdrawal amounts.
The rigorous regulatory standards with which Freedom Finance must comply create a foundation of confidence for the trader. However, this broker’s services are not aimed at novice investors. At the same time, the limited trading software options and payment methods do not provide enough tools for professional traders compared to the competition.