The Top 10 Benefits of Online Investing

In this post, we are going to discuss the benefits of online investing. Of course, all investing involves risk and you should be willing to do some research before committing money to anything. However, this is the year 2020 and there has been no better time in history than to find ways to make your money work for you than now.

So, before we consider the benefits of online investing, let’s give a brief definition and description of what it is. We are talking about the ability to buy and sell commodities (stocks, bonds, options, etc.) online from the comfort of your home with the purpose of growing the money you already pose. Online trading usually requires that you open some type of online account with a financial institution with hopes of making investments. You may or may not use a broker of some type but in most cases, you are in control of your money and how it is invested. The key to earning and profits usually comes down to your knowledge and decisions. So, let’s discuss the benefits of this type of investing…

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1. Inexpensive: No middleman means lower fees

With many online trading platforms, there are little to no broker fees. Even if you use a traditional broker, they may encourage you to trade online to or reduce costs that are usually charged with traditional trading. Even if you invest in large trades, you can usually negotiate broker’s fees. Furthermore, online trading platforms allow you to bypass the need to speak with a broker.

2. Convenience: very little time commitment

You need an open trading account with internet access. Most online trading platforms are built around the ideal of simple and seamless which results in a very small-time commitment. Besides, you are not investing money so you can take on another job instead you want your money working for you. Many trading platforms have made the trading process so seamless that most things you need to do as an investor can be done on a smartphone.

3. The economy is growing and so should your portfolio

The current economy is expanding so there are many great online investments that you should take advantage of to increase your bottom line.

4. You have more control and flexibility of your portfolio

You are complete control which means you can trade anytime and anywhere. You don’t have this type of flexibility with traditional investing and trading. With online trading, you are not at the mercy of a broker’s time. Instead, you can make transactions on your time and in short notice.

5. You can limit errors that are often associated with traditional trading.

Miscommunication is normal in traditional trading because often what the investor wants and what the broker thinks the investor wants are two different things. This is eliminated with online trading.

6. You can monitor your money in real time

You can watch your investments anytime on almost all online trading platforms. You are usually given access to real time data, analysis, and charts to help you make decisions based on what is important to you. Many online trading platforms offer advice from expert brokers to assist you in times that may be unsure of what is happening with your investment.

7. You can stay ahead of inflation

The average annual inflation rate is 2.9% and yet the annual rate of return on stocks is around 10%, which means if you should employ of buying into the market and holding, your money can grow faster than inflation.

8. It is easier than ever.

It is easy to buy and sell into almost any market for almost any amount. You can purchase investments in minutes and with little to no commission fees. Online tools and platforms exist for almost anyone’s portfolio. Many of these online platforms are free of many traditional hassles you may find with traditional investing. Most online trading platforms don’t require any special knowledge or skill to effectively use them.

9. Avoid other people’s biases

Brokers are notorious for giving advice that benefits the broker in the form of commissions. You can avoid this dilemma altogether. You can review all your own options and make decisions that are in your best interest without being pressured to make a decision that serves the interest of some else. You can limit or even eliminate outside interference. As you trade online and become more experienced, you will understand the markets and be able to use your knowledge and experience to your advantage.

10. It is safer than ever.

Many online and legal safeguards have been put in place to ensure that you can protect your investment. Many online trading platforms have an interest in your money being successful, so scams are not tolerated. Online trading is one of the most secured ways to trade commodities and invest money.

Final Thoughts

As you can see, the advantages of online investing and trading have never been more numerous. However, as I stated in the beginning of this post, there are risks involved. You could make a poor decision on an investment based on a lack of knowledge or experience with the market. Investing errors and missteps can be avoided with proper training and education so before investing real money make sure you acquire the necessary knowledge to make the right decisions.

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External Links

The Benefits of Investing in Stocks vs. Disadvantages

What is Online Trading?

7 Benefits of Online Trading

Some pros and cons of online trading

What are the benefits of trading online?

 

 

 

8 thoughts on “The Top 10 Benefits of Online Investing

  • February 18, 2020 at 4:15 am
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    As we know that Investing errors and missteps can be avoided with proper training and education so before investing real money make sure we have acquire the necessary knowledge to make the right decisions. We also must aware about risk factor involved in it. Proper knowledge is very helpful to avoid risk. I am learning about it.

    Reply
  • February 18, 2020 at 5:15 am
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    Hey, I enjoy a lot while reading your top Ten Benefits of Online Investing.  Due to security risk I am not doing trading any more. Now I found Online Money Making Opportunities with wealthy affiliate on your site. I see it is the best platform to start earning  and getting awesome results. I love the training very much and getting good results.

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  • February 18, 2020 at 2:01 pm
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    Though your post clearly explains the process of online investing, I’m still apprehensive about it and in my mind, I feel it is risky. Affiliate marketing with Wealthy Affiliate or drop shipping seem much better for avoiding risks. Also, with affiliate marketing, I don’t have to put up so much money upfront which is certainly to my liking!

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  • February 18, 2020 at 8:51 pm
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    Marvin – As I said about your Drop Shipping Posts, it is like a sledgehammer when each of the signicant features are in Bold when they are visable. Your site looks very good and it gives out a lot of infomation. Your images are very good also. I just think that you need to give you content, which is very good by the way more life by having bold points.  Wish you the best.

    Reply
  • February 18, 2020 at 10:03 pm
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    Great information on this site. I have always been worried about trying online investing as you don’t really know who your money is going to, how they are going to invest it as well as the concern with losses. This article explains some of that and makes it a little clearer.

    Reply
  • February 19, 2020 at 2:10 am
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    Thank you for this information, I now feel better investing online. I must agree with you that it is now safer than ever to invest online.

    Some people confuse us between online stock trading and online investing which as we know it, are two different things. I remember I was lured by an online FX trading saying it is an opportunity to invest in stocks via the Internet when in fact, what they want from me is to deposit money that I can trade. If ever I go on online investing, what I want is to buy a stock of a company and hold it for a very long time like I am one of the owners of that company.

    Can you suggest of a good platform to achieve this goal?

    Reply
  • February 19, 2020 at 2:57 am
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    Wow! A lot of information in your article. While i do believe in investing, I have a very hard time believing it is safe. Even banks have problems. I feel this can only get worse as hacking becomes more prevalent. There are ways though to secure your investments and money on line but, once again, diligence is going to have to remain the norm to protect your money online. True enough there’s always going to be risks, but the rewards are a lot of times heavier on the scales of money making ventures. You spelled out everything clearly and it was easy to understand. Thank you for your article and kudos for making Wealthy Affiliate a top recommendation for money making online work. Keep up the good work. Blessings always.
    Patches lynn

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  • February 19, 2020 at 10:08 am
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    I have invested online a number of times, and I agree with you that it is convenient, can be better monitored and can be inexpensive. But with lack of training it can be very risky. There are millions of places online advertising for people to come invest in them. I’ll go with your number one recommendation, Wealthy Affiliate! 

    Reply

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