When it comes to investments, bonds often take a back seat to stocks, index funds or even crowdlending. But in an environment of high interest rates and market volatility, bonds are making a comeback as a very attractive option for investors looking for stability, fixed income and an alternative to equities.
In this article I explain what bonds are, how they work, and why investing in bonds through Freedom24 can be an interesting opportunity, both in terms of yield and accessibility. I’ll also show you how to take advantage of their free shares promotion, where you can get between 1 and 20 shares for free when you top up from €1,000.
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What is a bond?
A bond is essentially a loan you make to a company, government or organisation. In return, you receive interest for a certain period of time and, at the end of the term, you get back the capital invested.
To understand how a bond works, it is useful to know its main characteristics:
- Nominal value: This is the reference value of the bond. It is the amount that is recovered at maturity.
- Market price: This is the current price of the bond. It can be lower or higher than the face value. If it is lower, the bond is bought at a discount.
- Coupon: The interest paid on the bond, expressed as an annual percentage. It can be fixed or variable, and paid quarterly, semi-annually or annually. The higher the issuer’s risk, the higher the interest rate offered.
- Maturity: The date on which the issuer repays the principal invested. Bonds can have short-, medium- or long-term maturities.
- Yield: The effective yield obtained by the investor, taking into account both the coupon and the purchase price.
- Credit rating: This is the risk rating given by agencies such as Moody’s, S&P or Fitch. The higher the rating, the lower the risk and the lower the return.
- Liquidity: This refers to how easy it is to sell the bond before maturity. Some bonds are very liquid, others less so.
- Currency: Bonds can be denominated in euros, dollars or other currencies. If you invest in a currency other than your own, you take on currency exchange risk.
Understanding these characteristics is essential to comparing bonds with each other and making good investment decisions.
Types of bonds by issuer:
- Corporate bonds: Issued by private companies to finance operations. Higher yield, moderate to high risk.
- Municipal bonds: Issued by local governments.
- Sovereign or government bonds: Issued by states.
The most popular for conservative investors tend to be fixed coupon government bonds, as they offer clear returns with low risk.
Why are they becoming popular again?
Since central banks raised interest rates, bonds have returned to yields that were unthinkable a few years ago. Where once a bond offered as little as 1–2 % per annum, today we can find US Treasury bonds above 4.5 %, and corporate bonds with yields of 6 % or more.
Moreover, bonds bring stability to the portfolio, as they offer a fixed income stream and their behaviour is often more predictable than that of equities. This makes them particularly attractive for conservative investors or those who want to diversify their portfolio.
Buying bonds with Freedom24
Freedom24 is an EU-regulated broker that offers an easy-to-use online platform for investing in a wide range of international financial assets.
The broker provides direct access to over 147,000 bonds, 3,600 global ETFs (including bond ETFs with a yield of 4.7 % to 6.3 %) and 40,000 stocks with transparent and competitive commissions. Another key advantage of the broker is its Bloomberg award-winning analyst team, which regularly publishes market analysis, carefully selected stock picks and investment ideas with an average return of 16 %.
Freedom24 currently has more than 500,000 clients worldwide and a network of offices in 10 European countries. In addition, they are part of Freedom Holding Corp, a global company listed on NASDAQ. Its market capitalisation exceeded $10 billion in 2025 and it was included in the prestigious Russell 3000 index. As a publicly traded company, they meet strict transparency standards.
Freedom24 offers access to over 147,000 primary and secondary market bonds, both government and corporate. But if you are not a fixed income expert and don’t know where to start, they have created a very useful tool: Bond Showcase.
This section features a selection of bonds from creditworthy issuers (minimum credit rating of B), which you can easily buy from €1,000.
Key features:
- Selected bonds with a minimum credit rating of B.
- Yields of 5–7 % p.a. in many cases.
- Terms from 1 to 10 years.
- Issued in euros or US dollars.
- Coupons with quarterly, half-yearly or annual payments.
- Possibility to hold to maturity or sell earlier.
How to buy bonds on Freedom24?
Buying bonds at Freedom24 is very easy:
- Create your Freedom24 account. It takes about 10 minutes, is free and completely online.
- Verify your identity by uploading photos of two documents to the platform and taking a selfie. The documents you need to upload are your ID card and proof of address, such as a utility bill or bank statement.
- Deposit funds. Top up your account by bank transfer or bank card. A bank transfer takes 1 to 2 days to appear in your balance. Topping up by bank card is immediate, but has a 2 % fee, so it’s up to you to decide which option is best. You can also top up with digital assets.
- Go to the investment menu and click on “Services”, then “What to buy” and finally select the “Bonds” section.
- Select a bond.
- Place your investment order.
Bonds are purchased through orders and the execution process usually takes 10–15 minutes during market hours.
How to choose bonds
When selecting bonds, it is advisable to consider the following criteria:
- Credit rating: The higher the rating, the lower the risk. Bonds with a B rating or higher are generally considered credit-acceptable, although they are not risk-free.
- Maturity: If you are looking for short-term liquidity, prioritise 1–2 year bonds. For higher yields, consider longer durations.
- Coupon type and frequency: Check whether the bond pays interest quarterly, semi-annually or annually. Some may have variable coupons.
- Price versus face value: A discounted bond may offer a higher yield than the face coupon.
- Currency: Choose euro-denominated bonds if you do not want to take currency risk. If investing in USD, consider exchange rate impact.
- Diversification: Don’t put everything in one issuer or sector. Combine corporate and government bonds with different maturities.
- Liquidity: Some bonds have a more active secondary market than others. This matters if you plan to sell before maturity.
Choosing bonds strategically allows you to match risk and return to your investor profile and financial objectives.
Applicable fees
Freedom24 has a very clear fee policy:
- 0.15 % commission for the bond with the Smart rate in EUR (0.5 % with the All-Inclusive in EUR rate).
- €5 / $5 for each buy or sell transaction.
- Custody: free of charge.
- Withdrawal of funds: €7.
If you buy a bond of €1,000, you would pay: €1,000 × 0.15 % = €1.50 + €5 = €6.50 (with the SMART rate in EUR)
Free share promotion
Freedom24 has a special promotion running until 30 June 2025. The higher the amount you deposit, the more shares you can receive as a gift.
The shares are chosen randomly from listed companies such as Apple, Tesla, Meta, etc., and you can sell them 30 days after you have received them. Details of the promotion can be found here.
What are the risks of investing in bonds?
Although bonds are generally considered conservative investments, they are not without risk:
- Interest rate risk: if rates go up, the value of your bond may go down.
- Issuer risk: in the event of a default, you may not get your money back.
- Liquidity risk: if you need to sell the bond before maturity, you may receive less than expected.
- Currency risk: if you buy dollar bonds and the euro appreciates, you could lose purchasing power.
Comparison: Investing in bonds, ETFs, deposits and crowdlending
| Minimum investment | Return | Liquidity | Risk | |
| Bonds | 1.000 € | 4-7 % | Average | Medium |
| ETFs and equities | Depends on the share | 6-10 % | High | Medium-high |
| Bank deposits | Depends on deposit | 2-4 % | Very low | Very low |
| Crowdlending | 10 €-50 € | 7-12 % | Low-medium | Medium-high |
- Bonds: Offer stability and regular payments. Good option for diversification with controlled risk.
- ETFs: High potential return, but with higher volatility. Suitable for long term.
- Deposits: Maximum security, limited returns. Ideal for ultra-conservative profiles.
- Crowdlending: High potential return, but risk of default and lower liquidity. Requires broad diversification.
Conclusion
At a time when stock markets are expensive and interest rates are still high, bonds are consolidating as an excellent tool to complement an investment portfolio.
Freedom24 is an interesting platform for investing, not only in the stock market, but also in fixed income:
- You can start from as little as €1,000.
- A selection of bonds from reliable and well-valued issuers, in the “What to buy” section.
- And you can take advantage of the free share promotion.
- Freedom24 has been licensed since 2015 in 29 European countries and is registered in Spain with the CNMV (registration number 4547).
When incorporating bonds into an overall investment strategy it is essential to consider factors such as diversification, term and risk.
Bonds can form part of a portfolio seeking stability and moderate returns, and Freedom24 offers an accessible way to explore this asset class.
This content is sponsored by Freedom24. All investments carry risks, including the potential loss of capital. Past performance is not indicative of future results. Do your own research before making any investment decision. Seek professional financial advice if needed.
