We found 11 online brokers that are appropriate for Trading Low Risk Investment.
Following the Coronavirus pandemic, the economies of the United Kingdom, the United States, and many other markets around the world have been facing immense challenges. Investors are looking for stability and are now, more than ever, interested in low risk investments. They are trying to build a portfolio that includes less risky assets to help balance investments when the market is volatile.
In order to lower their risk exposure, traders opt for trade-offs, even though the returns are lower in the long run. Their main goal is to maintain a steady flow of income, in addition to preserving their capital. If one is looking for growth, investing strategies will be required.
There are basically two factors to consider when choosing low risk investments. These are either to go for no risk investments, or to undergo some risk. In the first option, there is nothing to lose out of the principal, not even a cent. In the second, a small loss may occur over a period of time. In either of these investments, the returns will be low; but, if inflation exists along with it, the purchasing power is eroded.
Below are some well-researched tips for low risk investments:
Savings accounts offer low, yet stable returns. Technically, this cannot be considered an investment. It is absolutely safe though, and not a single cent of the principal suffers loss. However, inflation erodes the purchasing power in such investments.
Bonds are not exactly investments either. These are similar to savings accounts. In fact, bonds are savings instruments sold by the U.S. Department of the Treasury. These usually offer a fixed rate of returns over a period of time. If the bonds are redeemed before the maturity date, a penalty is charged. These come with little or no risk. Consequently, they may also come with little or no return.
The CDs offered by banks are loss-proof. A rate of interest is promised over a pre-defined period. Some CDs pay higher returns than others. The only risk involved with CDs is the loss of some interest if money is taken out too early. Hence, it is important to read the rules before buying.
These are a group of low risk investments, like short-term bonds and CDs, that are grouped together to create diversification. They are sold by mutual fund companies and brokerage firms. The benefit of money market funds is that they are highly liquid, and one can take out money at any time. There is no penalty for taking out funds. Money market funds are safe because banks commit to the return rate, and the value of each share cannot go below $1.00.
Treasury Bills mature in up to one year, Treasury Notes- in up to ten years, and Bonds- in up to thirty years. TIPS are securities and the principal value of these goes up and down parallel to inflation moving up or down. They are sold directly, or through mutual funds.
Traders usually lose nothing in Treasuries, but they do need to buy positive-yielding bonds. If they are sold before maturity, there will be a deduction from the principal fund.
Corporate bonds are issued by companies, and can be of either the low risk variety or the high risk variety. With changes in interest rates, the market value of these bonds changes as well. It should be noted that long term bonds are riskier.
These are low risk investments, since cash dividends are paid to investors-- usually, through an established company. However, if the company runs into a loss and faces tough times, dividends can be eliminated entirely.
These are similar to the lower-grade bonds, and pay out cash regularly. However, these fluctuate when the market falls. It can be said that Preferred Stocks are a bit riskier than Bonds, because the payout is done after paying bondholders-- but of course, before paying stockholders.
In this article titled, 'Low Risk Investment', we discussed some of the best ways to invest to gain stablility, as well as regular returns. All of the above mentioned options differ from each other. So, it is advised to first read the rules, rates, norms, and other aspects before investing money. These are favorable if one is comfortable getting lower returns. It should not be forgotten that inflation is always rising and during high inflation, one can suffer erosion of purchasing power. Hence, it is better to build a good portfolio equipped with both low and high risk investments. A good balance is always required to keep the income flow steady.
We've collected thousands of datapoints and written a guide to help you find the best Low Risk 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 Low risk investment below. You can go straight to the broker list here.
There are a number of important factors to consider when picking an online Low Risk 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 Low Risk Investment.
Compare Low Risk Investment min deposits, regulation, headquarters, benefits, funding methods and fees side by side.
All brokers below are Low risk investment. Learn more about what they offer below.
You can scroll left and right on the comparison table below to see more Low risk investment that accept Low risk 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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Learn More |
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Up with avatrade |
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Up with fpmarkets |
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Up with plus500 |
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Up with pepperstone |
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Up with easymarkets |
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Up with xm |
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Up with fxprimus |
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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 | 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 Low Risk 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 Low risk investment below.