Financial Investments [The Guide]

Published: November 2, 2020 by Andrew

The world of financial investments is very dynamic and constantly evolving. At the base there is always the search for a profit, which ignites the hearts of investors.

In this guide we will show you the basics of financial investments and more precisely:

  • What financial investments are
  • How to overcome false beliefs
  • How to start investing

You will see that to start investing you do not need a big capital, just use brokers like eToro, which offer online trading without commissions. Here are the main investment platforms on the market:

Platform: etoro
Min. Deposit: 50€
License: Cysec
  • Social Trading (Copy the best)
  • Simple and intuitive
  • ➥ Start
    1star 1star 1star 1star 1star
    Platform: xtb
    Min. Deposit: 100€
    License: Cysec
  • Free demo
  • Free Course
  • ➥ Start
    1star 1star 1star 1star 1star
    Platform: iqoption
    Min. Deposit: 50€
    License: Cysec
  • Free demo without limitations
  • Minimum deposit low
  • ➥ Start
    1star 1star 1star 1star 1star
    Platform: ubrokers
    Min. Deposit: 250€
    License: Cysec
  • Free Training
  • Zero Commissions
  • ➥ Start
    1star 1star 1star 1star 1star
    Platform: trade
    Min. Deposit: 100€
    License: Cysec
  • Free demo
  • Free course trading
  • ➥ Start
    1star 1star 1star 1star 1star
    72.30% of retail CFD accounts lose money
    Platform: forextb
    Min. Deposit: 250€
    License: Cysec
  • Free trading course
  • Free trading signals
  • ➥ Start
    1star 1star 1star 1star 1star

    What are financial investments

    The term financial investments is often misused, but not everything we buy is a financial investment.

    Often people invest in their education or in a car to get around, or in an essential appliance such as a refrigerator.

    These are not financial investments, although they are often “sold” as if they were.

    Financial investments are all products or services that are purchased with the expectation of a tangible economic return, in short, a profit.

    The most common financial investments are those made on the markets, through the purchase of shares, bonds, ETFs, mutual funds, commodities, etc.

    Then there are the financial investments in commercial activities or real estate, more “direct” investments than those on the markets because you have a tangible perception of what you are buying and what it is worth.

    In conclusion, there are investments in collectible items, such as rare auto art works, jewelry, etc.

    Financial Investments, how do they work

    The functioning of financial investments is very complex and varied, we cannot give a single description on how to invest, but we can explain the functioning of the most common financial investments.

    At the base of an investment there is an expense with the prospect of an increased future economic return: a profit. Markets can offer truly impressive returns and if you continue reading our guide we will explain how to get started.

    False beliefs about financial investments

    Financial investments in the markets often frighten the layman out of false beliefs that make them more complicated than they really are.

    Let’s try to eliminate some false beliefs about financial investments:

    1. Investing in the markets is complicated: Not necessarily, in the next paragraph we will explain how to invest directly online, without moving from home and in a totally automatic way.
    2. You need to be an expert: There are special free courses that allow you to learn the basics of online trading quickly and eabsily. In the next paragraphs we will also talk about this.
    3. It takes a lot of money: It’s not true, you can also start with very low capital, if you continue in this guide we will show you how to do it.

    Before continuing by analyzing these 3 false beliefs on financial investments and offering solutions to each of them; we want to show you how to make financial investments, how and with which intermediary.

    Financial investments intermediaries

    We do not want to dwell too much on the types of intermediaries that allow you to make financial investments, we will focus only on the simplest and cheapest method, that is, using the best trading platforms on the market.

    These platforms are made available by CFD Brokers, intermediaries that allow you to invest directly online in numerous markets, with a simple PC and an internet connection.

    The characteristics common to reliable CFD Brokers (the only ones we will propose in this guide) are:

    • They offer CFDs, contracts that allow you to invest both upwards and downwards (short selling).
    • They don’t charge commissions.
    • They have the authorization of at least one supervisory body such as CONSOB or CySEC.

    At this point, let’s go back to the false beliefs about financial investments and see how to remedy them.

    Automated Financial Investments

    The first point of the false beliefs about financial investments concerns the idea that investing is complicated.

    But what if we told you that there is a broker that allows you to make totally automatic investments?

    At the base of this system is the possibility of following what the most experienced traders are doing and copying all their investments, automatically and for free, does it seem impossible?

    It is not, The system is called Copy Trading and the Broker is eToro.

    This online broker is the most used in the world, over 7 million investors use its platform to invest in stocks, commodities, etfs, forex, cryptocurrencies, etc. without paying commissions.

    Exactly, eToro is a CFD Broker so it does not charge commissions and to start investing in the markets, a minimum deposit of € 200 is enough.

    Sign up for free on eToro

    But let’s go back to automatic investments, eToro’s strong point. Let’s see how to take advantage of the famous and revolutionary Copy Trading:

    • Register on eToro, it's free
    • In the People section you can choose the traders to copy, based on numerous parameters.
    • With a click, Copy Trading will copy the operations performed by the chosen traders on your account.
    • Thus you will get the same returns as these experienced traders, at no additional cost.

    Do you want to know how much you can earn with these financial investments?

    It depends on the returns of the traders you decide to copy, here are some of them on the eToro platform:

    etoro copy trading

    Click here and choose which trader to copy

    Proceed as follows: Sign up on eToro for free, before depositing money do all the tests you want on the Demo account offered by this Broker, you can also test automatic investments without running risks, on this account.

    Click here to sign up for free on eToro

    Financial Investments Manual

    Now let’s move on to the second false belief about financial investments: Do you have to be an expert?

    Not necessarily, or rather, experience is acquired and skills can be studied for free.

    Many are looking for a manual for financial investments, well we want to offer you a real Trading Course, offered for free by one of the most popular brokers: ForexTB.

    This Broker owes its success to the attention paid to training and operational support provided to its investors.

    ForexTB allows you to download this Trading Course for free. Basically it is a manual (in pdf) that describes how online trading works and what are the best investment strategies.

    In the ebook you will also find the basics of technical analysis, which are essential for making profitable financial investments.

    Click here and download the Trading Course for free.

    The free manual offered by ForexTB would not be complete without operational support that allows you to make investments even without experience.

    invest forex

    This support is provided through the Trading Signals, free information that is sent free to all Broker users. They are signals developed by Trading Central, a renowned financial analysis institute, which make these indications very reliable.

    Click here to get free trading signals

    Economic financial investments

    And here we are at the last false belief that it is necessary to dismantle, that relating to the money needed to make financial investments.

    The capital available to an investor is not an obstacle to investments, there is a Broker that allows you to make investments in the markets even starting from a very small capital.

    IQ Option stands out among its competitors precisely because of this characteristic, the entry threshold for opening a real account is set at only 10 Euros!

    That’s right, you read that right, to open an account with IQ Option you need 10 Euros and to start trading on the markets just invest a few Euros in each single operation.

    Join IQ Option for free

    Even if it offers the possibility of making such small investments, IQ Option is a safe broker regulated by CONSOB, therefore absolutely reliable.

    iq option

    The IQ Option platform is very clear, complete and simple to use. To learn how to invest, this Broker also offers an educational area full of free training content.

    Register for free on IQ Option and log in to the free Demo account, and then switch to the real one by paying only those famous 10 Euros.

    Click here and access the IQ Option Demo account for free

    How to do financial investments

    After having seen that investing is not that complicated, you don’t need to have experience and a really negligible capital is enough, let’s see the necessary steps to get started:

    1. Subscribe to the brokers we have proposed (for free)
    2. Test the Demo accounts
    3. Take advantage of the support and content offered for free
    4. Deposit money on the platform of your choice

    Do not jump directly to the fourth step, do not immediately risk your money, first you need to become familiar with the trading platform, you must not be in a hurry!

    Types of financial investments

    Before concluding our guide on financial investments, it is necessary to offer you an overview of the types of investments available on the markets.

    We are all attracted to earnings and the idea of finding a way to live on the fat of the land has touched everyone’s mind. Let’s see which types of investments can bring us closer to this ambitious goal.

    Invest in Stocks

    Trading in stocks is one of the most frequent and potentially profitable investments.

    In our guide we have seen that it is not a complicated investment and you do not need to have a large capital available but you must carefully choose the Broker to use.

    The most famous traders in the world belong to this sector, they have almost all invested in stocks and although not all of them have become as rich as Warren Buffett, they have achieved enviable goals.

    Invest in Forex

    The most liquid market in the world, that of currencies is an excellent possibility for making profitable financial investments.

    Forex (the currency market is called in this way) offers the possibility to speculate on the price variations of exchange rates between currencies of various countries and is very suitable for Scalping.

    To invest in Forex you can use the same CFD brokers that allow you to invest in shares.

    Invest in Commodities

    Investing in Commodities (Raw Materials) is the oldest form of financial investment ever.

    While in ancient times raw materials such as wheat, cotton, gold, etc. were physically negotiated. Currently you can trade through CFD brokers who quote the prices of these financial assets in real time.

    With these intermediaries you can do oil trading, gold trading, wheat trading, etc. By speculating on the price differences of these commodities.

    Invest in Commercial activities

    Even the money invested in starting and running a business is an investment.

    Entrepreneurship is one of the most difficult investments to make because it requires more than just money. Consequently, it is an investment with extremely large potential returns and very high risk of failure.

    Invest in real estate

    Homes and apartments that are bought for rent or resale are financial investments.

    Unlike the investments we have talked about so far, investing in real estate requires a substantial capital available.

    Without capital it is necessary to take out a mortgage to buy a property. In principle, borrowing for a financial investment is not advisable.

    Invest in precious and collectible items

    Investments in precious objects, author paintings, collectible cars, etc. It can be considered a financial investment.

    Also in this case, as for a property, substantial capital is required. Usually you buy at auction in cash and to make good profits you need to invest a lot of money.

    Collecting is very complex, you need to be an expert to profit from this kind of investment, so if you are not, be very careful.

    financial investments

    Conclusions

    This guide has shown an overview of financial investments, analyzing the most common and most profitable ones.

    We have shown you the most common false beliefs about this type of investment and how to overcome them.

    If you have no investment experience, we recommend that you subscribe to the Broker Demo platforms that we have reviewed, you risk nothing and registration is free. After practicing you can make the minimum deposit required by the broker you prefer and move on to real financial investments.

    Here are the official links for free access to the Demo accounts of the best online brokers:

     

    What are financial investments?

    These are expenses that aim at an increased economic return: a profit.

    How do financial investments work?

    Financial investments usually require an intermediary, who offers the possibility of trading on the markets.

    Are there any manuals for financial investments?

    Yes, there are many and in our guide we have proposed one that is totally free.

    How is a financial investment made?

    You rely on a CFD Broker like eToro, which allows you to invest safely without paying commissions.

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