A great number of folks are willing to earn big money by trading stocks. If you are also interested in how to make money with the EXANTE brokerage company, you are welcome to follow these tips.
Choose an asset
As a rule, traders are offered to trade stocks, derivatives, currencies, and commodities. The stock market is most suitable for trading in stocks, bonds, ETFs.
Bonds can be defined as a debt instrument with a known yield-to-maturity. By issuing bonds, a company or state takes money in debt and then returns it with interest.
Shares are securities granting the right to participate in the management of the company and the right to receive part of the profit in the form of dividends.
When buying a stock, an investor can count on returning capital and generating income through one of two mechanisms: dividends or price increases.
ETFs (Exchange-Traded Funds) happen to be exchange-traded investment funds whose securities are traded on the stock exchange. These stocks are a small copy of the entire market. Having bought them on a brokerage account, the investor invests in a whole basket of different instruments that are collected in the ETF according to a certain principle. At the same time, ETFs are bought and sold in the same way as ordinary papers.
Bonds are considered to be the least risky instrument. ETFs or individual stocks are more risky objects for investment, but they are also more profitable. So be sure to first determine your risk and choose the appropriate assets to sleep peacefully at night when your trading positions are open.
Open a trading account
There are three options to open a brokerage account. So, you can visit the broker’s office in person, send your documents by mail or create an account on the broker’s official website.
We recommend opening a brokerage account online. As a rule, any broker provides such an opportunity. It’s a convenient and fast option.
Once the trading account is created, you can deposit money. As a rule, it’s carried out with bank transfer. Payment details will be provided by the broker. In this case, you can get these details from EXANTE founded by Alexey Kirienko.
Buy the chosen asset
An application for the purchase or sale can be conducted in two ways: online or by phone.
Online trading is carried out using a trading terminal or the broker’s website. The trading terminal can be installed on a computer or used on a smartphone. By the way, EXANTE founded by Anatoly Knyazev gained recognition for its outstanding trading terminal. It was developed by the broker by itself. The trading platform has no rivals in terms of convenience. You can easily manage all the panels and windows of the trading platform with the help of the Drag-n-Drop feature.
When trading by phone, you call the EXANTE brokerage company and order it to buy or sell certain assets, specifying all the parameters of the transaction (price, volume, and others). It’s convenient if you do not want to understand how to use trading terminals or you do not have it at hand.
How much can you earn on the stock exchange?
Well, it depends on the strategy and the selected assets. Bonds of the federal loan (OFZ) and shares of reliable companies give 6.5-7.6% per annum with minimal risk.
The shares of large companies on average bring 12-15% per year, taking into account dividends. Papers of small companies can give more, but the risks of losses in them are great.
ETFs give an average return on a set of assets (stocks, bonds, goods, etc.). Special tax incentives for private investors can help to increase profits.
Trading tips for beginners
Before you jump with both feet into stock trading follow these helpful tips:
· Do not expect quick returns from the stock market. Most likely they will not appear immediately.
· Start investing with small amounts. Make a few transactions, see how everything works. This approach will help to avoid great losses at the initial stage.
· Do not confuse investment and speculation. Everyone can become an investor, but at the same time, active speculation requires certain skills, so this role is not suitable for everyone.
· Keep track of commissions and don't forget about taxes. It’s necessary to reduce costs as much as possible and allow profit to grow.
· Diversify your investments. In other words, you shouldn’t invest in one asset. Instead, you should rely on several ones. Thus, you will reduce the risks.