Home Investments Cryptocurrency Embrace Social and Commission Free Trading for Wealth Creation

Embrace Social and Commission Free Trading for Wealth Creation

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Trading has been around for ages. There are plenty of stories of how smart investors have earned tremendous profits from stock, Forex or commodities trading, but there are also horror stories of retail traders becoming bankrupt because of investing in the wrong stocks or currencies, not knowing when to get out of stocks/currencies or just misreading market sentiment. Such horror stories have kept many a potential retail trader away from trading. Yes, there is no doubt that trading is fraught with risks, but if you go about it in the right manner, the returns outweigh the risks.

If you want to trade in stocks, in traditional currencies or cryptocurrency, but are concerned that you might not take the right decisions at the right time or are worried about the ancillary costs (commissions) that can decrease your profit margins, this article is for you. We discuss two avenues you can explore to create wealth through trading and that without the associated risks or costs.

Social Trading – Aggregating Market Expertise

Social trading can be described as a social network for traders. With one in four retail investors, considering using social trading in 2018, there is no doubt it is doing something right. If you sign up with the numerous social trading platforms operating out there such as eToro, you are essentially signing up with trade focused platforms that will help you copy the trades of expert punters. You can follow their account as you would follow an account on a normal social media platform, interact with them, get tips, insights and if your start trusting them enough, you can copy their exact trade.

So what is the pay off? Simple! It doesn’t matter if you have zero experience in trading or have no knowledge of what currency or crytptocurrency trading entails; all you need to do is follow the expert. This ensures you are bringing down your risks and improving your chances of profiting from the trades you make.

Social trading enables you to take expert trading decisions without being an expert. This is what is working for it.

Commission Free Trading – Bringing Down Trading Costs

 Revolut, the digital banking alternative, popularly used for free international money transfers, has announced plans for launching a commission-free trading service for users. Companies such as Revolut, are revolutionizing the banking ecosystem by simplifying some key banking processes and making them more accessible. With over £350 million of transfers happening on the site, there is absolutely no doubt that such platforms have radically changed banking, and businesses are making good use of it.

But the target is not just businesses alone; with services like commission-free trading, these platforms are targeting smaller retail investors who are shying away from trades because of the costs involved. So the question to ask here is “how will the company make money?” , the answer lies in  margin trading, securities lending and interest on cash; that’s where these platforms are planning to earn their money from. The end beneficiaries are small traders who want to cut down on their trading expenses to earn more profits. It also allows them to explore new avenues such as FX trading and cryptocurrency trading.

Conclusion

The whole idea behind using social trading or commission free trading platforms is to make use of the latest technology for wealth creation. Don’t miss out on these because if you do so, you might just get left behind. Something else you need to keep in mind is that the use of technologies such as blockchain means their processes are transparent and safer than traditional trading or banking processes. So, there is no reason why you shouldn’t try them out.

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