Investing is a complex process, and choosing the right investment platform can be difficult.
The market is saturated with platforms, and choosing one can feel like rolling the dice. It’s important to know your options, which means you need to know what factors to consider when choosing investment platforms.
In this blog post, we’ll explore six of those factors. Read on for more information!
1. What Types of Assets Do They Offer?
Investment platforms allow you to invest in a variety of different assets. Some may only offer stocks, while others might also include real estate and bonds.
On some platforms, you can invest with things like cryptocurrencies or precious metals.
When choosing a platform, ensure they have the types of investments you’re interested in.
The more options available for investing through your chosen platform, the better off you’ll be. Even if a few types of investments don’t interest you at first glance, choosing a diverse range makes diversifying risk much easier on your end.
However, if you’re starting, choosing an investment platform with a limited number of options can be beneficial. You’ll have less to track and manage and can focus on selecting investments that fit your individual goals.
2. Minimum Investment Amounts
Some investment platforms require you to meet minimum requirements before making investments. These may include having a certain amount in your account or choosing specific types of assets.
The rules will vary between different investment platforms. Some may allow you to make transfers as small as $50. Others might only be accessible to high net worth individuals with millions of dollars on hand.
This can be important when choosing a platform because it impacts how much money you’ll need to get started.
If possible, find out what potential platforms need before opening up any new accounts. You’ll be able to make a better decision about choosing the right platform if you know exactly what’s required before starting.
If minimums are too high, it may not even be possible to use that specific investment platform at all. That can leave you needing to find another option for investing your money.
3. Accessibility
You can access investment platforms in a variety of ways. Some possibilities include:
- Web interface
- Mobile app
- Desktop program
Any combination of these options is possible as well, so keep an eye out for what potential investment platforms have to offer. The more accessible your chosen platform is, the easier it will be on you when choosing investments and managing assets over time.
For example, if you’re regularly spending hours away from home, having easy access via a mobile app may make trading less difficult than using only web services ever would.
Relying solely on desktop software might not always work either. Accessing computers isn’t always convenient all the time. Luckily there are plenty of great options for platforms.
Just be sure to check out what options are available before choosing one. That way, you can make the most informed decision possible about investing your money.
Additionally, find out if there are any fees associated with accessing your chosen platform via certain methods.
4. Investment Platform Fees
Investment platforms often come with fees attached. These can include commissions or management fees, among others.
Some options might be entirely free of charge, while others could have monthly maintenance fees. And these may apply regardless of whether you make any trades on their platform ever.
Additionally, some investment options may offer lower rates for larger investments made over time. This is called a tiered structure, and it’s an excellent way to reduce costs when investing large amounts.
The more information about trading fees available, the better everyone will be. That way, you can choose the platform that offers the best rates for your individual needs and make a truly informed decision about where to invest.
5. Alternative Investment Platforms
If you’re looking for an alternative to traditional investment platforms, there are plenty of options available.
Some possibilities might include peer-to-peer investing or crowdfunding. Others could involve cryptocurrency exchanges or more unique ideas entirely.
While some people may have heard about these choices before, many aren’t aware that they exist as alternatives to the typical investment platform model. When used correctly, an alternative investment platform can be incredibly beneficial. They offer distinct advantages over other methods in some situations.
For example, peer-to-peer investing might not be possible with a traditional investment platform. This is where investors come together online to contribute directly to various projects. They don’t need to funnel money through an intermediary.
Crowdfunding represents another alternative that’s often overlooked. It can allow anyone with Internet access to invest directly in exciting new start-up companies without relying on intermediaries at all.
6. Investment Platform Security
One of the most important considerations to make when choosing an investment platform is its security. So it’s worth investigating thoroughly before committing resources to a given option.
For example:
- Is there SSL encryption in place
- How about two-factor authentication
- What sort of insurance does the service offer
- How often are audits performed on their systems
These questions and more should help you determine whether an investment platform has the security you need to feel safe investing with them.
It’s also a good idea to see how long they’ve been around. Also, check out any complaints that might be available about their business practices or policies online. If there are numerous negative reviews on social media and review sites like Trustpilot, it might not be a good idea to use that company’s services.
Choosing Investment Platforms Made Simple
With these points in mind, you should find the right investment platforms for beginners for your needs and preferences going forward.
Remember, it’s your hard-earned money at stake. So you need to do everything possible to protect it and make sure your investment is safe with the right platform.
We hope you found this guide on choosing investment platforms helpful. To keep reading more exciting content, keep reading our blog posts.