We found 11 online brokers that are appropriate for Trading Investment.
What are high yield investments? They are investments that offer an income 'punch'. This would be the short answer, but let's have a detailed discussion.
Interest rates have been at historic lows recently and they are assumed to decrease even further. This means the returns on savings and fixed accounts are low and are going to get lower still. This is the reason why income investors have started searching for investments that offer regular payouts.
However, one needs to be careful while searching for high yield investments.
The bond market is becoming more risky. The risk and volatility come with the instability of emerging market countries with respect to the political situation.
Moreover, several emerging market governments don't have a good record in protecting investors. There are many more issues that make bonds riskier. The emerging market bonds are highly sensitive to global economic changes.
According to the 'Wise Multi-Asset Income' co-manager, Philip Matthews, 'Real or high yield investments are positive in the emerging markets and negative in markets like Europe and the United States.' This reveals that investors are better positioned in emerging market debt while generating real returns.
'Murray International' manager, Bruce Stout argues that the present unconventional monetary policy in developed markets is risky.
Many investors consider such high yield investments, but the question arises whether the currency should be local or hard. It equates to risk versus reward.
'Chelsea Financial Services' managing director Darius McDermott said, 'Investors look for some additional yield in order to compensate for the extra risk that emerges from a depreciation of the home currency.'
The risk is less in bonds which are dominated by hard currency like the dollar. However, this does not mean that the USD-dominated bonds in emerging markets are free from hazards.
Many investors may not be able to decide whether to invest in local currency or hard currency. However, there are experts to help in making these decisions.
Several high yield investments use derivatives to generate good income. Investors who are looking for enhanced income funds need to keep their eyes wide open, since the funds can swap future capital appreciation potential in order to get income.
'Tilney Bestinvest' managing director Jason Hollands claimed that it is important to view enhanced income funds as if rearranging the assets' return profile, since income has replaced capital growth. However, this relies on the investor, and is best for those who are looking for upfront income.
Hollands further adds that, 'With time, the returns will turn out to be similar to the profile of the portfolio.'
It is important to note that high yield investments in bonds come with proportionate risk because they are the result of low share or bond price. Hence, it is necessary to find out why the price is low.
According to Yarrow, 'The primary risk with high yield investments is one that the market trusts the least'. So, buying high yield investments is not enough. One needs to learn the back story of the investment in order to make a proper judgment.
Hollands is warning here that one should not be dazzled with high yield investments alone. The important thing to note is sustainability.
Everyone looks for high yield investments as the rate of interest is lowering year after year and the market is becoming more challenging. However, it is also true that high yield investments are riskier and one should keep a close eye on emerging markets.
High yield bonds are most sought-after as returns are promised to be much higher than other investment options. However, it should be noted that high yield bonds usually come from companies that lack solid strength. This is the reason high yield bonds are sometimes referred to as junk bonds.
If the attitude toward taking risks is low, one should avoid such bonds and opt for closed-end funds. These comparatively reduce the risk of losing money.
Beginners are warned from risking their hard-earned money in bonds, as these financial instruments may wipe away their savings. It is better to impart some knowledge about them first, and thereafter, get involved.
Before wrapping up, it is important to note that high yield investments are not for novice traders, and hence, amateurs should avoid buying them.
We've collected thousands of datapoints and written a guide to help you find the best High Yield Investments 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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AvaTrade
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FP Markets
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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) | Central Bank of Ireland, Australian Securities and Investments Commission (ASIC), Financial Services Authority (FSA), South African Financial Sector Conduct Authority (FSCA), Financial Stability Board (FSB), Abu Dhabi Global Markets (ADGM), Financial Regulatory Services Authority (FRSA), British Virgin Islands Financial Services Commission (BVI) | Australian Securities and Investments Commission (ASIC), Cyprus Securities and Exchange Commission (CySEC) | 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 | 250 | 100 | 100 | 200 | 100 | 5 | 100 | 1 |
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Used By | 20,000,000+ | 180,000+ | 250,000+ | 200,000+ | 10,000+ | 15,500+ | 10,000+ | 142,500+ | 3,500,000+ | 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 | Web Trader, MT4, MT5, AvaTradeGo, AvaOptions, Mac, Mobile Apps, ZuluTrade, DupliTrade, MQL5 | MT4, MT5, IRESS, Mac, 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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Risk Warning | 67% of retail investor accounts lose money when trading CFDs with this provider. | Losses can exceed deposits | 79% 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. | 72% of retail investor accounts lose money when trading CFDs with this provider | Losses can exceed deposits | 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 |
AvaTrade Demo |
FP Markets 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 | BE, BR, KP, NZ, TR, US, CA, SG | US, JP, NZ | 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.