HFM information and reviews
HFM
96%
Octa information and reviews
Octa
94%
FXCC information and reviews
FXCC
92%
FxPro information and reviews
FxPro
89%
FBS information and reviews
FBS
88%
Vantage information and reviews
Vantage
85%

Navigating the new normal with Libertex


26 May 2022 Written by Tom Tragett  Lead Writer and Analyst at Libertex Group Tom Tragett

If the post-pandemic age has been defined by anything, it has to be the massive surge in activity across the financial markets. The numbers of ordinary people getting into trading and investing over the past two years have been absolutely unprecedented. In fact, it is now estimated that retail actors currently account for up to 25% of the total stock market, and these figures are even higher in developing markets.

After hitting new all-time highs at the tail end of 2021, cryptocurrencies are another asset class that has enjoyed record capital inflows and newfound popularity among institutional and retail investors alike. And it's easy to see why more and more men and women in the street are shunning the banks and opting for higher risk-to-reward options.

Between near double-digit inflation and paltry savings account rates, the huge gains posted in the stock and crypto markets of late have been enough to tempt even the most conservative of savers. In this article, we'll look at what is driving the hype on the financial markets and how you can maximise your potential returns as a trader or investor.

The hidden tax

Sound financial planning and saving money have traditionally gone hand in hand, but the era of ultra-low interest rates had already begun to challenge that paradigm. Then, as super-inflation started to take hold, long-term cash savings became nothing more than a surefire way to economic ruin. If your savings account is paying you 2% APY on deposits, but prices are rising by 8% a year, it doesn't take a rocket scientist to work out that you're actually losing 6% of your wealth each year.

Contrast this with the amazing returns seen in the stock market over the past 12 months, and it becomes a no-brainer. Even conservative plays like Tesla (TSLA) or Alphabet Inc (GOOGL) would have netted you 65% and 38.5%, respectively.

Certainly, many of the new entrants to the stock market were perhaps reluctant at first, but now they're confidently purchasing ETFs, indices and even individual stocks. Until inflation is brought under control — which could be many months (or even years) and multiple rate hikes from now — securities investments will be an absolute necessity for anyone below retirement age.

The digital revolution

Crypto has been one of the most hotly discussed asset classes of the past 24 months, making headlines in 2021 for its explosive growth, newly discovered utility and widespread adoption. The movements in this higher-risk market have been even more spectacular in their swings than stocks but come with much more uncertainty. For instance, while BTC was up over 90% at one point this year, it is currently down almost 40% from this recent all-time high.

However, with institutional investors now 'all-in' on crypto as an instrument class with staying power, it does appear as though these relatively young digital assets still have several growth cycles ahead of them.

Despite their characteristic volatility, they are still touted as potential inflation hedges, and an increasing number of people are thus including portfolio allocations of Bitcoin on a par with gold, for instance. There are still many fraudsters and scam artists operating in this space, and it is wise to take the time to find a reputable broker like Libertex, with a secure and user-friendly app that allows you to store your crypto holdings alongside the rest of your stocks, currencies and commodities.

Caveat investor

With the rising popularity of trading and investing, the market has become quite saturated with companies offering financial services. Unfortunately, not all are made equal, and your choice of broker will have a significant impact on overall performance. Libertex, for example, offers commission-free crypto CFD trading, which means all you pay is the spread when buying or selling digital currencies. Most operators in this space charge transaction, exchange and commission fees on every single purchase or sale, reducing your potential returns by a significant margin.

And, if like many new crypto investors, you are predominantly a holder of equities or other more traditional assets, you might prefer having the option to store your entire portfolio in one easy-to-access location for added comfort and convenience. Luckily, Libertex has been connecting ordinary people with a range of financial markets for nearly a quarter-century and can give you access to all your holdings via its intuitive, multi-award-winning app.

Don't put all your eggs in one basket 

As exciting as short-term trading may well be, some people reasonably prefer long-term investing. Well, now the company's new Libertex Invest account type enables you to make long-term stock purchases completely free of charge. That is to say, you won't be charged any transaction fees, commission or other costs. This means you can buy and hold individual stocks like Microsoft or Apple or even indices like the S&P 500 or Nasdaq under the most attractive terms. Even if you're a die-hard trader at heart, you have to admit, it's always good to have a lower-risk nest egg stashed away for a rainy day. 

With this in mind, the brand-new Libertex Invest product now allows you to keep your active trading and passive investment portfolios conveniently separate, all the while providing you with fair conditions for both account types. So, if you are about to dive into one or both crypto CFD and investment worlds, trying Libertex and opening your very own dedicated account would be a rather wise choice!

#source

Share: Tweet this or Share on Facebook


Related

FP Markets Reduces Spreads Across Key Asset Classes
FP Markets Reduces Spreads Across Key Asset Classes

In response to increasing investor demand for more cost-effective trading solutions, FP Markets, a global multi-asset Forex and CFD broker, has further reduced its spreads across various trading instruments.

12 Jun 2024

HFM Wins The "Best Copy Trading Broker" Award at FMAS:24
HFM Wins The "Best Copy Trading Broker" Award at FMAS:24

HFM, one of the biggest brokers regulated by the South African authorities and a global broker of choice, has been honored with the ‘Best Copy Trading Broker Award’ at FMAS:24 in recognition of their reinvented Copy Trading program and market leading trading conditions.

3 Jun 2024

Just2Trade Awarded Best Multi-Asset Broker 2024
Just2Trade Awarded Best Multi-Asset Broker 2024

Just2Trade, one of the most reputable brokerage brands in global financial markets, was recently honored with the prestigious title of Best Multi-Asset Broker 2024 for its broad diversification of trading instruments for clients.

30 May 2024

Octa sponsors three charity projects in celebration of Ramadan
Octa sponsors three charity projects in celebration of Ramadan

Charity activities are an essential part of Ramadan celebrations. Octa seized this opportunity to implement a series of socially beneficial initiatives worldwide. Read about the projects the broker carried out in Indonesia, Malaysia, and Nigeria.

29 May 2024

How to become a RoboForex partner: innovative features of the Infinity program
How to become a RoboForex partner: innovative features of the Infinity program

In the competitive realm of financial trading, aligning with a dependable partner can significantly boost your income potential. RoboForex's Infinity Partner Program presents a golden opportunity for partners to profit from the trading activities of their referrals.

20 May 2024

FP Markets Increases its Commodity Offering, Adding Brent Oil, Cotton and Sugar Futures
FP Markets Increases its Commodity Offering, Adding Brent Oil, Cotton and Sugar Futures

In response to increased client demand for flexibility in the commodities market and in line with its commitment to deliver comprehensive trading solutions, FP Markets has announced the expansion of its commodity offering.

16 Apr 2024


Editors' Picks

The Top Forex Expert Advisors 2024: Performance, Strategy, and Reliability Review

An annual roundup reviewing the most successful Forex Expert Advisors (EAs) based on their performance, strategies employed, reliability, and user feedback. This piece would provide insights into which EAs have been market leaders and why.

The Evolution of Forex Expert Advisors: Navigating the Path of Technological Revolution

The concept of automated trading has been around for decades, but the accessibility and sophistication of Forex EAs have seen significant advancements in the past few years. Initially, automated trading systems were rudimentary, focusing on simple indicators like moving averages.

The Impact of EAs on Forex Trading: A Double-Edged Sword

By enabling continuous, algorithm-based trading, EAs contribute to the efficiency of the Forex market. They can instantly react to market movements and news events, providing liquidity and stabilizing currency prices through their high-volume trading activities.

MultiBank Group information and reviews
MultiBank Group
84%
XM information and reviews
XM
82%
FP Markets information and reviews
FP Markets
81%
FXTM information and reviews
FXTM
80%
AMarkets information and reviews
AMarkets
79%
BlackBull information and reviews
BlackBull
78%

© 2006-2024 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.