When it comes to saving for retirement, tax-sheltered retirement tools like a 401(k) and IRA can be great for building up your savings more quickly.
But you don’t want to under-estimate your taxable savings tools as well. Although you don’t get the same tax breaks, regular taxable investments can be accessed at any time without fear of penalty if you’re under age 59-1/2. If you have any plans to retire early, this can be a great resource. To give you a good example, Robert and Robin Charlton from the How to Retire Early ebook had almost a third of their nest egg in taxable accounts for this very reason.
Fortunately, in today’s age, you no longer have to spend a lot of money (or hardly any money at all for that matter) with a reputable brokerage company. Online trading is a lucrative business that anyone (of legal age) can invest his/her money. This involves trading currencies and commodities based on market fluctuations and trends to make money.
One of the best things about trading online is that you can do it from the comfort of your home. Learning how to trade is relatively easy as well, as you can train yourself using online tutorials, as well as through the free (risk-free) practice account. This makes it possible for you to learn and practice new trading strategies without risking your money. It is considerably the best way anyone can use to diversify his/her investments. One of the primary benefits of diversifying investments is that it reduces risks and also improves profit margins.
The Benefits of Venturing in Online Trading
- Greater investor control: Online trading has made it possible for investors to execute trades almost immediately without having to call a broker. This means you have more control over your money than before, which also gives you the privilege and freedom to choose the best times to trade. You can buy and sell currencies and commodities while on transit, early in the morning, as you have dinner or while vacationing.
- It’s cheaper: Online trading eliminates the need for brokers to trade on your behalf (unless you want to). This means you get to spend very little money in fees, and also, get to choose how much you wish to inject into your live account. This also means you get to learn market trends and driving forces that make it possible to realize profits as a professional trader.
- Wide choice of commodities to trade on: The beauty in forex trading is that you get access to virtually all commodities in the market to trade in. This includes domestic stocks, international stocks, bonds, cash equivalents and short-term investments among many others. This means you get to choose a commodity you are familiar with to begin with before venturing in the others. This again increases the chance of making good money from the same.
- Wide choice of trading platforms: Although most people begin as part-time online traders, many eventually quit their jobs to become full-time investors. One of the reasons for this is because they have a broad range of trading platforms to choose from. Some of the most common trading platforms include a web-based trading interface, meta traders and mobile apps. Many people however prefer the feature-rich and desktop enabled meta trader. The meta trader contains all vital tools and features needed to help you make a more informed decision before making an order.
- Low minimum capital required: While many other investments require thousands of dollars in initial deposit or investment, you only require as little as $250 to start your journey as a trader. While you can make some money with the $250 advantage, most people continue topping up the account to make even more. You have the freedom to decide when to top up, or withdraw your earnings almost instantly without having to go through the tedious paperwork needed in conventional investment methods.
Although there’s a very high chance of making profits and good money out of online trading, the risks are equally as much. Nonetheless, with proper training, patience, and understanding of the market, you should be able to manage these risks to make more money.
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