Saturday, November 28

Personal Finance, Brokerage and the Right Platform

Want to take charge of your personal finances? Want to invest in the stock market, but don’t want to pay the 2-3% management fee that banks and credit unions charge? Have you ever heard of a discount broker or brokerage platform?

Of course, investing in the stock market requires knowledge in the field of finance. But, it is never too late to learn the basics of finance and investing. Plus, there are some simple strategies that don’t require a lot of financial knowledge. For example, buying exchange-traded funds (ETFs) according to the portfolio models. Also you can opt for CTB brokerage platform without any worry about any hoax about Global CTB scam.                                                       

Managing the Investment

Is it necessary to manage your investments yourself to achieve financial independence in your 40s? No! But, let’s say it can help speed up the journey. Why? Because by investing yourself, you can save hundreds of dollars each year in management fees or lost opportunity (for example, investing in ETFs that follow the market instead of investing in GICs offered by your bank). These hundreds of dollars lost each year only push back the age of your retirement.

What is a brokerage platform?

A brokerage platform, or discount broker, allows you to manage your investments in stocks, bonds or exchange-traded funds (ETFs). You do not need to go through a broker or an advisor to carry out transactions (eg: purchases or sales of shares). The transaction fees are very low, around $ 10 per transaction, resulting in better returns on your investments.

However, you need to be careful when investing in the financial markets yourself. You need to know your investor profile, determine your financial goals, know your risk tolerance, etc. You can use portfolios pre-established by funds, copy portfolios of known investors (many investors disclose their portfolios on the web) or build your own portfolio according to your needs and goals.