We found 11 online brokers that are appropriate for Trading Investment.
'Fundamental Trading' is when a trader decides what stock to purchase and when to purchase it, by focusing on company-specific events. This is more along the lines of a 'buy and hold' strategy than short term trading. Sometimes fundamental trading can yield high profits in a relatively short period of time.
Lets first take a look at various equity trader types.
Scalpers make many trades in one day to exploit the bid/ask spread, and acquire a small profit from every trade.
These traders look for stocks moving strongly at a high volume in one direction. They want to move with the momentum in order to make profit.
These traders hold their position for longer than a day. This term applies to most fundamentalists because corporate fundamental changes usually take days or weeks to change price significantly.
These traders are focused on graphs and charts, analyzing them for signs of convergence or divergence which could indicate signals for buying or selling.
Fundamental analysis of corporate events is behind fundamental trading. This can include reports of anticipated or actual earnings, stock splits, acquisitions, and reorganizations.
Although a novice trader is likely to try all or most of these techniques to find their niche, they will probably decide on one of them ultimately, which will match their experience and knowledge.
Equity investors, as a rule, know about the most common data used in financial fundamental analysis. These would be EPS or earnings per share, cash flow, and revenue. These elements include figures on the company's cash flow statement, earnings report, or balance sheet.
In addition, they might include: ROE - return on equity, D/E - debt to equity, or other financial ratio results. A fundamental trader can use this type of data to identify whether there might be trading opportunities, such as a company issuing surprising earnings results.
Analyst downgrades and upgrades, along with earnings announcements, are two typically fundamental factors closely watched by investors and traders. Of course, it can be hard to get an edge on this information, since there are millions of competitors looking at the same data.
These can offer a short term trading opportunity, especially when a well-known analyst downgrades a stock without warning. Traders have to act swiftly when short-selling, since the price action can be very quick.
When the company in question issues a statement saying whether they will meet, fail, or exceed their expectation of earnings, this is the pre-announcement phase. Trades typically happen immediately afterwards because of the short term momentum.
Both analyst ratings and earnings announcements link closely to momentum trading. Momentum traders seek unexpected events which cause stocks to move steadily up or down in large volumes.
Fundamental traders, on the other hand, are usually more interested in getting information about speculative events that the remainder of the market might not be privy to. Clever traders can stay a step ahead of the market by using their knowledge of historical trading patterns related to takeovers, acquisitions, stock splits, or reorganizations.
A companys market capitalization will not change when a £20 stock splits 'two for one', but they will now have double the amount of shares outstanding, each one at £10. A lot of investors think traders are more likely to buy £10 stocks than £20 stocks, so it follows that a stock split means market capitalization should increase for the company. Of course, this makes no difference to the value of that company.
In order to successfully trade stock splits, it is necessary for the trader to precisely identify the phase in which the stock is currently trading. History demonstrates that there are set trading patterns typically seen before and after a stock split announcement.
This means that price appreciation, and short term opportunities to purchase, will usually happen in the pre-announcement phase, as well as the pre-split run-up. Shorting opportunities, or price depreciation, will usually happen during post-split depression and post-announcement depression. Split traders would be able to trade in and out of this stock four times or more before and after the split occurs, with hour-by-hour or intraday trades, as long as these phases are correctly identified.
There can be extreme increases in price in the speculation phase just before an event, as well as extreme declines right after it. Traders must stay ahead of the market in order to be successful, so they probably won't purchase stock in a speculative phase and keep it until the announcement.
Instead they would most likely prefer to trade before the announcement and ride the speculative phase to capture the momentum. They might hold a long position for half of the day, then a short position for the second half, keeping an eye firmly on charts and other data so they know exactly when to change position.
As soon as the announcement happens, it is likely that the trader will want to short the stock right away. It does not often happen that an acquisition announcement is seen as a positive thing, so 'shorting' the acquiring company makes the most sense.
If a corporate reorganization was not anticipated, and the stock value was already decreasing because of internal corporate issues, the reorganization will probably be viewed as a positive occurrence. The board of directors might, for example, get rid of an unpopular CEO, which would likely mean the company stock would show upward movement in the short term.
Trading stock from a takeover target is different because the takeover offer has its own share price. So, traders must take care not to get stuck with stock near or at the offer price, as these shares are not likely to move much in the short term. The best opportunities for trading in the case of a rumored takeover would be in the speculative phase, when the rumored share price for the takeover bid drives the actual share price.
Although speculation and rumors can be risky in trading (especially when dealing with takeovers, acquisitions, and reorganizations), they can result in high volatility of the stock prices and speedy price movements. This means there are lucrative opportunities for trading during these times.
A lot of strategic traders employ sophisticated models to determine event-related trading opportunities before and after analyst downgrades and upgrades, acquisitions, takeovers, stock splits, and reorganizations. These charts are comparable to technical analysis charts minus the more complex math element. These simple pattern charts show historical trading pattern examples, and are used as a prediction guide for short-term current movements.
Fundamental traders have a good chance of making successful trades if they correctly identify the current stock positions and likely price movements. It can be risky to trade on fundamentals, but if a trader uses historical patterns to assist with their short term trades, they can reduce the risk when making such trades.
We've collected thousands of datapoints and written a guide to help you find the best Fundamental Trading Facts for you. We hope this guide helps you find a reputable broker that matches what you need. We list the what we think are the best Investment brokers below. You can go straight to the broker list here.
There are a number of important factors to consider when picking an online Investment trading brokerage.
Our team have listed brokers that match your criteria for you below. All brokerage data has been summarised into a comparison table. Scroll down.
We compare these features to make it easier for you to make a more informed choice.
Here are the top Investment Brokers.
Compare Investment Brokers min deposits, regulation, headquarters, benefits, funding methods and fees side by side.
All brokers below are Investment brokers. Learn more about what they offer below.
You can scroll left and right on the comparison table below to see more Investment brokers that accept Investment clients
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eToro
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IC Markets
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XTB
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FP Markets
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Trading212
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Plus500
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Pepperstone
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EasyMarkets
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XM
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FXPrimus
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SpreadEx
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Regulation | Financial Conduct Authority (FCA), Cyprus Securities and Exchange Commission (CySEC), Markets In Financial Instruments Directive (MiFID), Australian Securities and Investments Commission (ASIC) | Australian Securities and Investments Commission (ASIC), Financial Services Authority (FSA), Cyprus Securities and Exchange Commission (CySEC) | Financial Conduct Authority (FCA), FCA number FRN 522157, Cyprus Securities and Exchange Commission (CySEC), CySEC Licence Number: 169/12, Comisión Nacional del Mercado de Valores, Komisja Nadzoru Finansowego, Belize International Financial Services Commission (IFSC) under license number IFSC/60/413/TS/19, Polish Securities and Exchange Commission (KPWiG) | Australian Securities and Investments Commission (ASIC), Cyprus Securities and Exchange Commission (CySEC) | Financial Conduct Authority (FCA), Financial Supervision Commission (FSC) | Plus500UK Ltd authorized & regulated by the FCA (#509909), Plus500CY Ltd authorized & regulated by CySEC (#250/14), Plus500AU Pty Ltd (ACN 153301681), ASIC in Australia AFSL #417727, FMA in New Zealand, FSP #486026 and Authorised Financial Services Provider in South Africa FSP #47546 | Financial Conduct Authority (FCA), Australian Securities and Investments Commission (ASIC), Federal Financial Supervisory Authority (BaFin), Dubai Financial Services Authority (DFSA), Capital Markets Authority of Kenya (CMA), Pepperstone Markets Limited is incorporated in The Bahamas (number 177174 B), Licensed by the Securities Commission of the Bahamas (SCB) number SIA-F217 | Cyprus Securities and Exchange Commission (CySEC), Australian Securities and Investments Commission (ASIC) | International Financial Services Commission (IFSC), Cyprus Securities and Exchange Commission (CySEC), Australian Securities and Investments Commission (ASIC) | Cyprus Securities and Exchange Commission (CySEC), Markets In Financial Instruments Directive (MiFID) | Financial Conduct Authority (FCA) |
Min Deposit | 200 | 200 | No minimum deposit | 100 | 1 | 100 | 200 | 100 | 5 | 100 | 1 |
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Used By | 17,000,000+ | 60,000+ | 250,000+ | 10,000+ | 14,000,000+ | 15,500+ | 10,000+ | 142,500+ | 70,000+ | 10,000+ | 10,000+ |
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Platforms | Web Trader, Tablet & Mobile apps | MT4, MT5, Mirror Trader, ZuluTrade, Web Trader, cTrader, Mac | MT4, Mirror Trader, Web Trader, Tablet & Mobile apps | MT4, MT5, IRESS, Mac, Web Trader, Tablet & Mobile apps | Web Trader, Tablet & Mobile apps | Web Trader, Tablet & Mobile apps | MT4, MT5, Mac, ZuluTrade, Web Trader, cTrader, Tablet & Mobile apps | MT4, Web Trader, Tablet & Mobile apps | MT4, MT5, Mac, Web Trader, Tablet & Mobile apps | MT4, Mac, Mirror Trader, Web Trader, Tablet & Mobile apps | Web Trader, Tablet & Mobile apps |
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Up with spreadex |
Risk Warning | 71% of retail investor accounts lose money when trading CFDs with this provider. | Losses can exceed deposits | 82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. | Losses can exceed deposits | CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. | 76.4% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. | CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79.3% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money | Your capital is at risk | Your capital is at risk | Losses can exceed deposits | Losses can exceed deposits |
Demo |
eToro Demo |
IC Markets Demo |
XTB Demo |
FP Markets Demo |
Trading 212 Demo |
Plus500 Demo |
Pepperstone Demo |
easyMarkets Demo |
XM Demo |
FXPrimus Demo |
SpreadEx Demo |
Excluded Countries | IR, KP, BE, CA, JP, SY, TR, IL, BY, AL, MD, MK, RS, GN, CD, SD, ZW, ET, GH, TZ, LY, UG, ZM, BW, RW, TN, SO, NA, TG, SL, LR, GM, DJ, CI, PK, BN, TW, WS, NP, SG, VI, TM, TJ, UZ, LK, TT, HT, MM, BT, MH, MV, KZ, GD, FJ, BB, BM, BS, AG, AI, AW, LB, SV, US, PY, HN, GT, PR, NI, VG, AN, | AF, GN, SL, BW, IR, SY, MM, IQ, TG, KH, LS, YE, CI , LR, ZW, CU, LY, TZ, CG, ML, BO, LR, NE, AO, GM, NG, AG, GH, KR, KG, GN, SN, NA | US, IN, PK, BD, NG , ID, BE | US, JP, NZ | US | MY, BE, US, CA, CN, ID, PH, TG, NG, DO, MA, ZW, PR, TZ, TN, UG, BW, AO, AE | BR, KR, IR, IQ, SY, JP, US | US | US, CA, IL, KR, IR, MM, CU, SD, SY | AF, CI, CU, IQ, IR, LY, MM, KR, SD, PR, US, AU, SY, DZ, JP, EC. | US, TR |
You can compare Investment Brokers ratings, min deposits what the the broker offers, funding methods, platforms, spread types, customer support options, regulation and account types side by side.
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We have listed top Investment brokers below.