Top 6 Things To Consider Before You Decide On An Investment Platform
How To Choose The Best Investment Platform: A Quick Guide
So, you want to try your hands on investing. That’s great! It means you don’t want your money to remain stagnant and you want to generate additional income to help you reach your short-term and long-term goals in life. But, how do you start? Doing a quick search online will show you hundreds, if not thousands, of different platforms that can be the venue of your investment.
If you’re feeling overwhelmed, there’s nothing wrong with that. We’re help you to ease into your new financial journey through these tips and things to consider.
- Think about your investment goals.
Before you select your new investment platform, you must take a little time to do some introspection. What do you want to achieve with investing on a platform?
Are you looking into testing out investment and get a few extra thousand pesos at the end of it all? Do you want to work on a platform where you can pull out the funds any time you might need it? Do you want something that will get locked in to maximize your earnings with a long term arrangement?
By taking out what matters most to you, you’ll get to narrow down your choices well.
- Choose the type of investment.
In making your investment portfolio, they are many types of investment products you can earn from. Here are some common examples:
- Stocks – These are shares where you can trade ownership shares in a publicly traded company. To earn with stocks, you hope that its value will increase so you can sell them at a higher price.
- Bonds – Buying bonds is similar to lending your funds to a business or a government entity. Then, once it matures, you can get the principal back and earn a certain amount of interest.
- Certificates of deposit – CDs are low risk investment options wherein you provide a bank a certain amount of money and wait for a predetermine amount of time to get your earnings. The longer you extend the loan period, the higher your earnings will be.
- Peer-to-peer funding – P2P is a relatively new investment option where users fund loans of individuals and their returns will come from the interest rate paid by the borrower. Each loan can be affected by various external factors, which also dictates the extent of your earnings.
- Read as much as you can and do some research.
Becoming an investor means letting go of your hard-earned money and hoping that they will come back with some new friends with them. How can you ensure that they will really do come back to you? Finding a safe platform that is very reputable for being trustworthy will be our best bet. Additionally, it is important to find a place where you can get the best return for your investment, security assured as well.
The only way you can accomplish this is through research.
Good thing, nowadays, is that research can be done within reach at any time. You can read blog articles, like this one, watch educational videos, and listen to the messages from esteemed financial influencers. Moreover, you can talk to family, friends, or colleagues with money-savvy knowledge that you can trust.
- Cheapest is not always the best.
When looking at different investment platforms, you’ll see that each of them come with different transaction fees. You might easily get attracted by the one with the least transaction fees, but that does not mean that they will offer you the best service. Quality is always worth paying for – so make sure to keep these things in mind.
- Study the different fees that the platform charges.
Investment platforms will always have fees – if they don’t, there’s no way for them to generate income. However, these fees will eat a portion of your investment returns, so you won’t want something that is too much you’re left with almost nothing. The fees will be depending on how you run your investment and the size of the money you’re investing. So, to be safe, look at a few different platforms and weigh which one gives justice to how much they are charging.
- Read user reviews and expert feedback on the platform.
Reputation matters, especially if you are going to entrust them with your money. The best option will be the one who has the most impeccable reviews on their site and third-party recommendation blog sites. You can read through websites and check people’s comments on their platform and their customer service. You can also check out blogs and vlogs of independent financial advisors, experts, and analysts. Other things you should study are the “About” page, white paper, legal documents, proof of registration, and the background of the Board of Directors.
Choosing an investment platform does not have to be a complicated task. If you put all of these considerations at the top of your mind, you will be able to find your perfect match. Just remember to put your needs and wants in mind before you make that final choice. There’s no need to rush, so take your time to shop around until you find your final investment partner.