Suppose you have £10,000 that you wish to invest online today, what kind of investment would you go that has low risks? One of the crucial decisions that you have to make while investing online is the kind of financial markets that you would trade in. What is the best way to invest your £10,000 online today? Should you go for futures, CFDs, Forex, Options or a combination of them? Read on to find out our recommended safe ways to invest online.
Investing in Educating Yourself About the Online Markets
I thought this should be the first and most reliable investment option for you. Although brokerages and online trading platforms offer test accounts where you try out your trading skills without losing money, this isn’t enough, and it shouldn’t be your starting point if you are thinking about safe investment online.
The test accounts offer you nothing but the behavior of the individual commodities and the flow of the market. The right step that you need to take is to enroll in an online trading academy which offers comprehensive trading and education for online investors. Once you learn and master everything about online investment, then you can proceed and make a selection from the below safe options.
Options trading is a safer investment since it gives the freedom to control a stock or any other asset capitalizing on its price movement without owning it. Options are usually priced low since they tend to expire after few weeks or a month. The price of an option is far-below the per-share price of the actual asset.
With just a few dollars, options trading will allow you to trade Google, Tesla or any other expensive high-flyer. The most you can lose in options trading is your stake. Nothing else. The only disadvantage of options trading is that it is complex and you need to undertake serious training before you decide to venture into it.
Trading futures involves capitalizing on the power of leveraging. With £100, you can easily control a futures contract worth £2000 or even more. And if you invested the same £100 through BTC/USD pair trading, then your stakes become exponentially high and profits fourfold. Future trading just like options trading is a low-risk investment that you can try if you have the right knowledge and skills.
However, the most crucial part of trading futures is choosing a suitable broker. Am sure you don’t want to work with a broker who will ask for additional cash from you for margin calls. Just like any other trade, if things don’t work out with a particular trade, you will end up losing your stake so be sure to stake what you can comfortably lose.
Buy Shares of Established Companies
Buying shares of established companies is a sure way of investing safely online. Shares are much easier to liquidate. Although it may take you a lot of effort and time to find shares of suitable bargains, the venture is worth your effort, and you won’t regret it since chances of losing are so slim
Foreign exchange is another safe online investment that you can try out on platforms such as CMC markets. It has a low price of entry since you only require about £100 to start trading with some online brokers. As opposed to options and future trading, Forex is relatively easy to understand, and through leverage, you can end up controlling far much more than your investment. However, you need to be extremely cautious of leverages since it can also cause you more losses.