Freedom24 vs eToro: all you need to know about costs, tools and trading benefits

If you’re unsure about which broker to choose between Freedom24 and eToro, this comparative review aims to help you make an informed decision based on your specific needs.

We’ll explore various aspects, including regulation, costs and commissions, trading platform features, advantages and disadvantages, user feedback, and other useful information.

Let’s determine whether Freedom24 vs eToro is the better option for you.

Which is the best: Freedom24 or eToro?

When you’re involved in trading, selecting the right trading platform is crucial. You need one that suits your individual needs, interests, and preferences. In this review, we won’t attempt to rank brokers but instead aim to provide an objective analysis. To do this, we’ll examine the main aspects of each broker, beginning with regulation.

As we’ll discover, both Freedom24 and eToro are safe and regulated brokers, ensuring your investments are secure. Next, we’ll consider the selection of trading instruments and the availability of a demo account. A demo account allows you to practice trading with virtual funds before committing real money.

Additionally, we’ll look at the minimum deposit requirement if you plan to start trading with real funds. Finally, we’ll assess the costs and commissions, which depend on factors like your trading volume and the type of financial instruments you intend to trade.

Below, you’ll find a summary table that consolidates these features, which we will then explore in detail as we delve deeper into the analysis.

Security and licenses: Freedom24 vs eToro

Freedom24 and eToro are both highly regulated brokers, ensuring the safety of your investments on both national and international levels. Let’s take a closer look at their regulatory frameworks.

Regulation Freedom24

Freedom24 is a part of the Freedom Holding Corp. group based in the USA. In Europe, it operates under the supervision of the CySEC. However, it’s worth mentioning that Freedom24 is not regulated by the FCA – hence, it may pose higher risks to British citizens than other FCA-approved brokers like eToro.

Regulation eToro

eToro is regulated by multiple entities, but perhaps the most important one is the FCA. While clients’ funds are not protected by the FSCS in case of bankruptcy, eToro does keep all clients’ funds with a separate entity (eToro Money), hence all funds are kept safe.

Apart from this, thanks to the license by the FCA, eToro does provide multiple security benefits for UK traders and investors, such as negative balance protection.

Costs and commissions: Freedom24 vs eToro

Let’s now look at the profile of the costs and commissions associated with trading activities with these two brokers.

Freedom24 costs

Freedom24’s cost structure is very flexible and made to cater to different needs, especially for active investors and traders. There are two accounts, in EUR and USD, which come free of charge. These could be a great choice for those looking to make infrequent trades or are on a budget.

For very active or experienced investors and traders, Fix in EUR and Super in EUR come with a monthly surcharge, but the commissions are considerably lower. This could benefit you if you anticipate a large number of transactions in your account. However, to pick the best choice for you, you should consider your trading or investing strategy carefully.

eToro costs

eToro’s cost structure is particularly convenient and competitive. Firstly, it’s to be noted that eToro has 0% commissions. In other words, you can trade stocks, ETFs, and other assets without any commissions.

eToro does charge its users in a few other ways – for instance, there is a spread cost built into the prices you see on the platform. There is also a fee on cryptocurrency transactions, although it’s noteworthy to mention that eToro is one of the very few best crypto brokers in the UK.

Moreover, eToro charges a fixed $5 fee for withdrawals. If you are inactive for more than 12 months, you will also have to cover a $10 monthly fee.

Trading platforms: Freedom24 vs eToro

Now, let’s examine what each of these brokers has to offer in terms of trading platforms.

eToro platform

The eToro platform stands out for its user-friendly interface, making it exceptionally accessible even for newcomers to the world of trading. The interface is divided into four main sections: Home, Favorites List, Portfolio, and Search.

Notably, eToro offers a mobile app, enabling users to receive notifications and stay updated conveniently via their smartphones.

However, one potential drawback is its slightly scattered nature, as users may find themselves navigating between sections to access feeds, portfolio information, and tradable assets. It’s also possible to trade directly from the mobile app.

Overall, eToro is undoubtedly one of the best brokers for beginners. However, its shining feature is copy trading – the platform allows any user to find a master trader and copy their entire portfolio with one click. If you are new to this concept, have a look at our copytrading guide.

Freedom24 platform

In contrast, the Freedom24 platform boasts a more advanced interface, making it slightly less suitable for less experienced users. However, experienced traders can benefit from its array of advanced features, including indicators such as moving averages, advanced charting tools, price and stop loss alerts, and more.

The Freedom24 app enjoys a positive rating on the Google Store and thousands of reviews. On the downside, the platform lacks customisation options, limiting adaptability to individual preferences.

If you are an experienced trader, have a look at the best brokers for intraday trading or the best trading platforms.

Differences between Freedom24 and eToro

First and foremost, eToro is a leader in social trading, with a user base exceeding 30 million worldwide. This, combined with its highly intuitive interface, makes it particularly appealing to novice and beginner investors. Opening an account and making initial deposits are straightforward processes.

In contrast, Freedom24 offers IPO stocks at their IPO prices and an extensive selection of other financial instruments. Compared to eToro, it may be better suited for experienced investors who can fully leverage its advanced features. However, keep in mind that it is not licensed by the FCA and you cannot copy trade.

Opinions on Freedom24 and eToro

In terms of costs, eToro is known for its affordability, although the inactivity commission can be somewhat burdensome – however, you only need to log in to your account periodically to make sure your account does go inactive. Additionally, spreads, overnight fees, and the conversion fee are slightly higher than average.

If you don’t deposit in dollars, a conversion fee applies. Notably, eToro does not offer bonds, futures, and options, limiting investment possibilities. However, its strong points include security, a wide range of available products, and the benefits of social trading.

On the other hand, Freedom24 features higher commissions and costs compared to eToro, despite the opportunity to trade without commissions for the first 30 days. Another downside is the considerable cost of currency conversion. Positively, Freedom24 offers access to stocks at IPO prices, reasonably low commissions for stocks and ETFs, and the absence of a minimum deposit requirement for trading.

Advantages and disadvantages: Freedom24 vs eToro

Overall, both platforms present distinct and valuable offerings for traders. Freedom24 distinguishes itself with its access to a diverse array of global markets and an easy-to-navigate interface, making it particularly appealing to more advanced users. Conversely, eToro excels as a frontrunner in the field of social trading, offering a user-friendly environment and the opportunity to learn directly from accomplished traders.

Freedom24 and eToro on TrustPilot

eToro and Freedom 24 both have excellent ratings on TrustPilot, exceeding 4 stars. Here is Freedom24’s TrustPilot rating:

Next, here is eToro’s review score:

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Freedom24 vs eToro: conclusion

In conclusion, the choice between Freedom24 and eToro ultimately depends on your specific trading preferences and goals. Freedom24 impresses with its extensive market access and advanced features, catering well to experienced investors seeking diverse opportunities. However, it does not excel in forex trading – so you may want to check the best forex brokers instead. Also, if you are a novice who is serious about trading, have a look at our trading guide to get started.

Meanwhile, eToro shines as a leader in social trading, offering an accessible platform and valuable learning experiences for newcomers and those interested in community-driven trading. If you are an advanced trader or investor, you may get more benefits from the best brokers for options and the best futures brokers, which will allow you to implement more complex strategies, such as hedging.

Both platforms have their strengths, whether it’s the intuitive interface of Freedom24 or the social trading prowess of eToro. It’s essential to weigh these factors against your individual needs to make an informed decision and embark on your trading journey with confidence.

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