diff --git a/freqtrade/configuration/directory_operations.py b/freqtrade/configuration/directory_operations.py
index a904e441c..448cf1acd 100644
--- a/freqtrade/configuration/directory_operations.py
+++ b/freqtrade/configuration/directory_operations.py
@@ -82,7 +82,7 @@ def create_userdata_dir(directory: str, create_dir: bool = False) -> Path:
     for f in sub_dirs:
         subfolder = folder / f
         if not subfolder.is_dir():
-            if subfolder.exists(follow_symlinks=False):
+            if subfolder.exists() or subfolder.is_symlink():
                 raise OperationalException(
                     f"File `{subfolder}` exists already and is not a directory. "
                     "Freqtrade requires this to be a directory."