Online investment platforms offer greater flexibility
Johannesburg; Investing via online investment platforms offers greater flexibility, because the investor can access their portfolio data at any time and transact. Investing online also cuts out costs traditionally associated with using a middleman.
Carin Meyer, CEO of FNB Share investing, says “People that invest via online platforms do so at a much cheaper rate than having to pay someone to place trades on their behalf. This essentially means the investor benefits from not having to pay a middleman. By investing online the investor does not have to spend time looking for a broker and who will put them through a qualifying criteria to see if they have the minimum capital required to start an investment portfolio”.
“However, it’s quite important that anyone trading online be armed with information and avoid making trades on a whim. It’s better to do some research on a company instead of buying into a company or a stock based on hype or hearsay”.
The main advantage of investing online is that the investor is in control of their investments and can view portfolio performance at anytime and from anywhere. Once a decision has been made to place a trade it can be done without having to wait for the markets to open. There is no longer a need to stick to business hours which means that the investor can literally manage his or her portfolio from anywhere in the world at any time day or night.
With FNB Share Investing investors have the added benefit of investing in Krugerrands via the online platform or the FNB Banking App.
“The ease of use and the ability to be in charge of your own investments has seen more people opt to ‘invest digitally’, and this is simply because investing online saves money, time and effort,” added Meyer
However, Meyer cautions against holding stocks briefly and then quickly making a decision to buy into another company.
“While all the data is readily available online and the investor has carte blanche on investment decisions, it is still important to have a long-term strategy,” said Meyer