We found 11 online brokers that are appropriate for Trading Value Investing.
Value investing has a simple explanation. It is the stock buying skill of a trader to trade at a discount. Traders usually look for companies that are found to be cheap on the valuation metrics. These are of low multiples of assets or profits and hence, not traded for a long term. A contrarian mindset is needed. Historically, value investing has outperformed index returns. Although, not always. There are evidences of when value investing has underperformed.
There are several reasons for stocks trading at a discount. One of the significant reasons is profit disappointment in the short term, probably due to a substantial price drop. The short term profit disappointment sometimes results in an emotional reaction among shareholders, and they sell the stocks out of fear that the price may fall further.
There are basically two things to look for in value investing. Most value investors are long term investors. This is the first factor. Next, the profit falls will probably be reversed over the long run.
These are sometimes unbelievable if looking at some high profile examples, like that of 'Lehman Brothers' and 'Enron'. However, it is also not to be forgotten that the profit of 'Amazon' and 'Microsoft' have been steadily rising, and there is no sign of falling any time soon.
It would be not wrong to say that value investing, in reality, exploits the irrational behavior of investors who trade based on their feelings. Over the centuries it is evident that emotion plays an important role among many investors. Fear and greed are the two factors that are always given priority, and of course these two lead to poor investment decisions.
Over the years, fear and greed have led missed pricing to the extreme. Two famous examples are the 'Great Depression' of the 1930s and the 'Technology Bubble' of the 1990s. In most of the markets, the two examples existed either to a greater or lesser extent.
However, it should be noted that value investing is not always found to be favorable, and would not even outperform over a shorter period. Consider this analogy. The short term market can be compared to a voting machine, while the long term market to a weighing machine.
If we take a look at the past 100 years or so of the investment market, value investing has not been a winner in the short term while other investments were highly favorable. Such periods last for a couple of years and, amid such a situation, value investors were turned into foolish traders.
Hence, investors, as well as fund managers, need to keep a balance of humility and fortitude. Long run results are attractive, and the best things seldom come easily.
Let us take a look at the performances of the UK market in the last 100 years. It is found that the high dividend yield stocks have been mostly considered fit for value investing. Investing in the cheaper parts would outperform the lower yielding stocks, and supposedly the market as a whole.
However, don't forget that past performance cannot become a guide to future performance. Past performance may not be repeated and value investing may not perform as expected. Investors may not even recover the originally invested capital. The future is uncertain.
It is true that value investing is an art, but the expectations of profit may not always be met. We discussed here some exceptional examples when the value investing skills proved to be wrong. Investors need to be cautious while opting for value investing. Some may make ample money, while others may not even get back the originally invested capital in return. Hence, value investing is a risky format and only an experienced trader should go for it.
In this article, we also discussed the reasons for value investing. It is along the lines of several investors taking advantage of the emotions of many investors. Emotions play important roles in trading for many, and the same is reflected in the market. Fear and greed seem to be the pillars of value investing. Many investors trade under the pressure of fear and greed, and value investors benefit from it.
However, beginners are suggested not to opt for value investing unless gaining ample experience in the market beforehand. Value investing is something different from normal trading, and it is not everyone's cup of tea.
We've collected thousands of datapoints and written a guide to help you find the best Value Investing 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 value investing below. You can go straight to the broker list here.
There are a number of important factors to consider when picking an online Value Investing 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 Value Investing.
Compare Value Investing min deposits, regulation, headquarters, benefits, funding methods and fees side by side.
All brokers below are value investing. Learn more about what they offer below.
You can scroll left and right on the comparison table below to see more value investing that accept value investing 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 | 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 Value Investing ratings, min deposits what the the broker offers, funding methods, platforms, spread types, customer support options, regulation and account types side by side.
We also have an indepth Top Value Investing for 2021 article further below. You can see it now by clicking here
We have listed top Value investing below.