One of the many disruptive impacts of the coronavirus lockdown is that it has precipitated a stock market trading boom.
Low interest rates, the growth of online trading platforms and a sudden explosion in the number of people at home with time on their hands have combined to send the number of amateur traders soaring.
Most trading platforms have reported significant increases in usage, and ordinary retail investors now account for 23 per cent of all US equity trading, more than twice the level of 2019.
Here we take a closer look at one of those trading platforms, Freedom24, operated by Freedom Finance Europe.
What is Freedom Finance Europe?
Freedom Finance Europe is an international investment company with headquarters in Cyprus, equity capital of over $142million and client assets under management of $523m. It is a subsidiary of Freedom Holding Corp, an international strategic investment company operating in eight countries – Kazakhstan, Russia, USA, Germany, Ukraine, Kyrgyzstan, Uzbekistan and Cyprus – and listed on the Nasdaq.
Freedom Holding Corp has over 2,000 employees and a market capitalisation of over $1billion. Its operations are regulated by the Securities and Exchange Commission (SEC, USA).
What does Freedom Finance Europe do?
Freedom Finance Europe is the only EU-based stock broker listed on the Nasdaq. Through its trading platform, Freedom24, you can trade stocks, exchange-traded funds and futures of the leading companies in the US, Europe and Asia. You can also buy and sell securities.
Through Freedom24, clients can invest in both US and European initial public offerings (IPOs), giving them access to the initial price before the company starts publicly trading. This can be a very profitable way to trade – between the period an initial price is listed to the time the lock-up period expires once the company has started public trading, a price can grow by 10s or even 100s of per cent. The average profit on all IPOs traded through Freedom24 over the last three months is an incredible 78% (as of April 2021), with recent star performers including Airbnb (189% increase), Snowflake (171%), Unity Software (203%) and Corsair Gaming (141%).
The exact allocation of shares is calculated according to the client’s rating, with a score ranging from 1/5 (minimum) to 5/5 (maximum). A client can view their rating before applying to trade an IPO by logging into their account or via the Freedom24 mobile app. The higher the rating, the larger the allocation.
Why is Freedom Finance Europe a trusted company?
Freedom Finance Europe is the only EU-based broker listed on the Nasdaq, the world’s largest technology stock exchange, with its stock traded alongside the likes of Google, Apple, Facebook and Intel.
The company is fully compliant with the MiFID II, a regulatory framework that ensures the highest investor protection level possible, and is also a member of the Association for Financial Markets in Europe (AFME).
Freedom Finance Europe is also classified an A (very low risk) by CreditSafe, and is regulated by the Cyprus Securities and Exchange Commission.
What are the benefits of trading on the Freedom24 platform?
One of the key advantages of trading on the Freedom24 platform is the ability to exclusively participate in both US and European initial public offerings, or IPOs. The past year has already seen some hugely oversubscribed IPOs from the likes of Airbnb, PubMatic, Bumble, Palantir and DoorDash, with anticipated 2021 IPOs to include Starlink, Darktrace, Stripe and Lamborghini. Freedom24 selects only top-tier companies for trading, filtering out IPOs where the return for traders is likely to be less profitable.
Another good reason for using Freedom24 is the low commission. Commissions start at $1.20 per trade, which compares very favourably with other trading platforms. Deposits and withdrawals are also very quick, with transactions usually taking between 24 and 48 hours to complete.
Finally, traders can access markets around the world, including NYSE, Nasdaq, HKEX, LSE, Deutsche Börse, KASE and MOEX, with clients able to use more than 40,000 financial instruments, including stocks of S&P 500 and the world’s leading companies, options, futures, corporate and government bonds, and various investment funds.