1. Nowadays, it is very hard to browse through the internet without coming across online adverts persuading you to trade with them.
Different firm claims that you can amass a lot by investing in gold, oil and foreign currency. The only problem with potential entrepreneurs is; distinguishing scams from the genuine traders.
2. It is important to seek advice from experienced online brokers before venturing in online trading. It is imperative to compare and contrast different investment sites before embarking on a trading journey.
3. Legitimate investment sites
- Stash—–This site is invaluable for beginners who might not have skills in online trading. This app round up your bank transactions to the nearest dollar. They use the bank accounts balances to make small investments for you thereby making profit without being engaged. Risk-takers only require $5 to open an account and the rest will be taken care of.
- Acorns—–Here the risk-taker can link bank account and credit card to this site. The app can take extra change from your accounts and invest it. The app will be investing small amounts which might benefit you in future. The risk-taker will only part with as little as $1-$3 monthly deposit.
- Crypto currency: Coinbase—-Here the risk-taker will have a wallet to store his or her currency. Site like coinbase offers brokerage and also exchange your currency thus making profit for you. The brokerage allows one to purchase bitcoins which can be traded with other crytocurrencies. Both the capital investment and profits are secured in investor’s wallet. However, the risk-taker will pay service fee .
- Wealthsimple——This site is good for risk-takers with at least$100,000, $5,000 to invest. The investor can interact with site managers freely. Wealthsimple basically is a Robo advisor to investors. It practices high degree of transparency in pricing of investment. Though they charge account management fee of between 0.4 to 0.5 % annually, they do not charge for trading, account transfers and rebalancing fees. This site has several advantages to the risk-takers such as: automatic portfolio rebalancing, dividend reinvesting, automatic deposits, financial advice to investors and tax-loss harvesting. Risk-takers with black accounts with more than $100,000 can have financial planning sessions with site managers. They can also have a VIP airline lounge access in more than 400 cities globally.
- Swell investing——This site allows the risk-takers to invest in companies whose financial performance is good. This site is run by Pacific Life Insurance which has a good financial track record. The investors can make weekly or monthly deposits into their accounts. The site charges a small annual fee of 0.75% thus making it friendly to the risk-takers. Other advantages of this site includes: low initial deposits, no trading charges and low annual fees thereby making it friendly to potential risk-takers. Swell buys and sell stocks on behalf of investors.
4. Risk-takers must do some assignment before choosing an online trading partner. One should consider the following factors:
i). Trading transaction cost
ii) .Reputation of the company
iii). Platform provided
iv). Ease of opening an account
v) .Products available
vi). Technical, advisory and educational support
In conclusion, the risk-taker should choose a trading site that best suit ones interests.