We found 11 online brokers that are appropriate for Trading Investment.
Investing in financial markets lures a massive amount of new traders daily, but it is doubtful whether all of them are well aware of the variety of investment types that are available, and which products would suit them best. In this article, titled 'Investment Types', we will take a brief look at some of the most popular investment types and how each is different from another.
Investing in stocks is the most popular financial product, and it is usually the first choice for many. Buying stocks means buying ownership shares in a publicly-traded company, such as: 'Facebook', 'Google', 'Apple', and 'General Motors'.
Investors who buy stocks in a company hope that the price will go up, so they can sell them and make a profit. However, it may happen the other way round. The price may drop, and selling thereafter would mean a loss.
The stocks are bought and sold through brokers, who could be either a face-to-face broker or an online broker.
Buying bonds essentially means lending money to a company or government. The bonds issued by the local government are called, 'municipal bonds', while those issued by companies are termed, 'corporate bonds'. In the United States, the U.S. Treasury issues bonds known as, 'Treasury Bonds'.
Bonds come with a maturity date. Which means that one needs to hold on to it until it matures in order to get returns the principal amount, plus all of the added interest.
However, the rate of return is usually lower than stocks. Bonds are a fairly low risk investment.
Mutual funds are simply a money pool of several investors that are broadly invested in companies by fund managers.
There are actively managed mutual funds and passively managed mutual funds. In the first case, fund managers pick the companies to be invested in. While in passively managed funds, major stock market indexes, like the S&P 500 and the Dow Jones Industrial Average, are tracked.
Some mutual funds invest mainly in bonds, while some in stocks. Some fund managers include a mixture of both in their selection to reduce the risk.
Exchange-traded funds (ETFs) are like mutual funds, but these are traded on the stock market. ETFs undergo fluctuations in prices throughout the day.
Mutual funds are bought and sold through a fund company and its value is directly related to the net value of one's investments.
ETFs are one of the best investment types for beginners to become more diversified. Investors can also reduce risk with it by opting for funds that track a broad index.
Popularly known as, 'CDs', the certificates of deposit are one of the safest investment types because they are accompanied with very low risk. It is like giving money to a bank and getting it back, along with interest, after a predefined time. The interest rate is higher if the loan period is longer.
CDs are FDIC-insured, and investors can get their money back, even if the bank goes bankrupt.
It should be noted that early withdrawals could lead to major penalties though.
There are a couple of different retirement plans available. The most common is a workplace retirement plan, which is sponsored by the employer. For others, an individual retirement plan works perfectly well too.
Options are a bit more complicated. Buying an option means buying the ability to either purchase or sell assets at a pre-determined time and at a certain price. These are of two types, call options (buy) and put options (sell). If the value of stocks falls, it is a loss of initial investment.
Annuities are used as part of a retirement savings plan. They are like buying a contract with an insurance firm with the intention of getting periodic payments, either starting immediately or at some future date. The returns may last until death or until an agreed-upon date. They are also low risk investments.
Agricultural products- like corn, barley, and wheat; and energy products- like coal and oil, are commodities. Similarly, precious metals- like silver and gold are also commodities. All of these commodities can be traded.
Commodities investing has gained popularity as of late, but it is a risky investment, as prices of the physical products may fall quickly without warning.
Cryptocurrencies are the newest investment type, but they lack government backing. The digital currencies market is not regulated, so it is one of the riskiest investments.
We discussed several investment types above. Some of these are of a high risk nature. Beginners are advised to initially start with low risk investment products. However, those who are looking for good returns should not opt for low risk financial products amid high inflation. The current economic situation is unusual due to the 'Coronavirus Effect', and hence the inflation rate, at the moment, is high. It is better to make a diversified portfolio and combine a mix of high risk and low risk products.
We've collected thousands of datapoints and written a guide to help you find the best Investment Types 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 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.
Compare Investment min deposits, regulation, headquarters, benefits, funding methods and fees side by side.
All brokers below are Investment. Learn more about what they offer below.
You can scroll left and right on the comparison table below to see more Investment 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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Up with spreadex |
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 | 72% 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 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 below.