In the trading world, traders have many different options when it comes to investments. With the growth of online trading platforms, a growing number of traders have access to financial instruments like never before. It has allowed investors worldwide to trade in Gold, real estate, bonds, stocks etc.
However, it should be known that all the different investment types, consist of asset types that have their own set of advantages and disadvantages. In this article we will be taking a look at each of these investment types in brief.
- Real Estate: Real-estate and housing is a popular investment option around the world. This includes private businesses, publicly-traded businesses, apartments, trailer parks and farms, all of which can be profitable investments.
One of the hardest aspects of investing in real estate is to invest in a house or property at 50% less than its actual value. Investors who can land a deal like this can expect decent and consistent returns when they invest in real estate. However, the difficulty doing this is what keeps many traders away from the real-estate market. It may be possible to invest in the stock market and make the same, if not better returns, without the various hassles involved with property maintenance.
- Stock Market: Investors can learn to invest in individual companies or stocks. It is largely considered as the most proven and reliable method of making substantial profits in trading. Online trading platforms and brokers such as IQ Option provide a convenient way for investors to trade in the stock market. They also provide educational resources for novice investors and traders, offering them advise and tips on how to trade. The Stock market is known as a place where investors can expect better returns in a much shorter time compared to other investment options. A good portfolio is the Ivy Portfolio. It is comprised of 20% total stock market and 20% international stock market.
- Bonds: Bonds are often the investment option described as “low risk” or “safe”. However, on the flipside, they only get the investor a 3% return on their money over a long period of time. This results in the investor having less buying power when they eventually take money out of the bond. This is because the rate of inflation may match up to the growth rate of the bond over the years.
- Gold: Gold is a commodity and can be a good investment option for most traders. However, investors have to be aware about protecting against a price drop, which is usually influenced by fear or scarcity. Gold as an investment can only work if the trader knows when scarcity can drive the price up.
- Mutual Funds: A mutual fund refers to a pool of funds from several investors, diversified into many different categories including bonds, stocks and other assets. They are usually operated by money managers who invest money on behalf on the mutual fund investor. The investors wait as the mutual fund generates positive returns for him/her. But the investor is liable to pay the money manager for his/her service, even if the mutual fund does not generate positive returns.
About CFD Trading
A CFD or Contract for Difference is an arrangement in financial derivatives, which allows traders to trade in the price movement of securities and derivatives. They are used by investors to make price bets to see whether an asset will rise or fall.
CFD Trading in IQ Option
IQ Option is a well-known and reputable online broker, offering a wide range of different assets and asset classes for traders worldwide. IQ Option provides CFD trading for forex, stocks, cryptocurrencies and commodities, along with binary options and digital options. Get more information about IQ Option before you start trading.
At IQ Option, the minimum deposit required is $1 only. They offer a free demo account to users on their platform. The demo account is a great way for beginners and novice traders to practice trading in a real environment and develop their skills, without having to spend any real money.
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