Hi
Does anyone have any experience with Freedom24? maybe someone checked this broker? They seem to pay much more than others e.g willBe for parked money, especially in Long-Term Savings Plans.
âMore important than the return ON your investment is the return OF your investment.â
Guarantees Investor Compensation Fund
Your funds are protected by the EU laws and insured for an amount of up to EUR 20,000
Really?
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Anything that gives your more return than the risk free rate (so anything above 5.3% in USD or 1.5% in CH currently aka the national bank overnight rates), will be inherently riskier/risky or comes with caveats. There simply CANNOT exist something sustainable (some occasional short lived promo may give slightly more for a short time frame to attract customers) and safe at the same time above these rates.
Term deposits or short term bonds may exist above that rate. But also just a little bit above, not a couple %.
Currently short term bonds in the US are lower yield than the risk free rate though for example.
I have not looked at the longterm savings plan in detail, but I basically guarantee you these rates are nowhere near guaranteed or come with risk.
The daily savingsplan seems to give you pretty much the risk free rate. You can get that yourself at ibkr, if you just buy a t-bill etf or better BOXX. This seems plausible to give you whatâs written.
In general though: Not saving in CHF is taxing an FX bet, that can backfire.
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Only know this broker because itâs popular in Greece and HEAVILY shilled by youtubers. Apparently there are a host of red flags and dodgyness about it.
Other than that itâs what tonyleet said.
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The look of the website reminds me eToro somehow. Do they mention âsocial tradingâ?
Board of Directors: Russians and some alibi Cypriots.
The choice of languages is also enlightening. No, I take it back.
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Alibi Cypriots! That a good one, could also say âtoken EUâ.
If it looks like a scam, smells like a scam, and feels like a scam, itâs because it is one 
.
Interest seems too good to be trueâŠ
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you donât have to test it with your money.
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I think they offer this, because this way itâs much cheaper for them to get money to fuel growth or whatever. Itâs riskier for you, but I wouldnât call it a scam. They are regulated [1] and even listed on the US stock exchange [2]. They are also a very big bank in Kazakhstan [3].
Why does 8% yearly interest smell like a scam? Just because itâs above the risk-free interest rate? P2P platforms offer 11-12% yearly yield, are they also a scam for the same reason?
[1] Freedom24
[2] Yahooist Teil der Yahoo Markenfamilie
[3] Freedom Holding - Wikipedia
Oooh, THAT made my fears go away 
Btw. Remember Kaupting anyone? They even had a Swiss & CHF branch 
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You are ignoring credit risk here.
You absolutely do not get 8% interest without very significant risk. Not even US corporate Bonds that are B rated, pay this much.
In an efficient market you get an appropriate return corresponding to the risk you take.
Iâm not saying they are scam and their normal daily savings plan seems legit (as itâs just the risk free rate forwarded to you).
But the longterm savings plan, cannot be without risk.
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Remind me in 3 years.
Shilling youtubers 
Shady board of directors
Questionable domicile
Unsustainable return promises
I think I will pass this âopportunityâ
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Just to be clear, I do not have an account with them and never plan on doing so.
Nowhere on the page it is being implied, that the the longterm savings plan is risk-free. If people donât understand that anything above the risk-free interest rate implies higher risk involved, then I canât help them.
*Investing in securities and other financial instruments always involves the risk of capital loss. Forecasts and past performance may not be used as reliable indicators of future performance. It is important that, before making any trades, you carry out your own analysis. If necessary, please seek independent advice from a certified professional.
Why? Just because the founder was born in Russia? Just wait until you find out where the founder of Revolut is fromâŠ
Same thing can be said about any other bank that offers an affiliate program. N26, Yuh, âŠ
Why is Cyprus questionable? Also, they are regulated by the CySEC (Cyprus), SEC (USA) and are BB rated.
What unsustainable promises do they make?
Which had deposit protection which had worked.
I donât know why we are still discussing it, but I want to say my famous last words. I donât think there is any type of scam here. But I donât care. For an individual Investor, losing money because you were scammed or because a company was honestly trying to do their business but failed, makes no practical difference.
- Do not invest in something you donât understand.
- Understand the risks associated with an investment.
- Manage your risks. This is the key element in investing.
- Do not take risks that you donât need to take
.
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Everyone do what they want, but as other said, there is some appropriate limit with interest that cannot pass without being to risky and/or too speculative.
Other than that :
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Apart from even the name sounding strangely dodgy, this was one of the few brokers willing/able to deal with sanctioned Russian stocks. Read into that what you wantâŠ
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â Freedom Holding reportedly under investigation by US SEC and DOJ
According to a CNBC report, the Nasdaq-trading fintech firm is being investigated over compliance issues, insider stock moves, and an offshore affiliate concerning sanctioned individuals. As per documents seen by CNBC and sources, the Boston office of the SEC has been investigating Freedom for months.
Additionally, the documents reportedly reveal that the SEC and DOJ are also investigating Freedomâs majority stakeholder and CEO, 35-year old billionaire and former Russian citizen Timur Turlov, amid claims he gave its Russian client base undue access to US initial public offerings (IPOs).â
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