COMPARISON OF DIFFERENT FORMS OF INVESTMENT
There are numerous types of investment today and choosing the best, or the most convenient investment option can prove to be a hard task.
Some of the investment options available are real estate investment, foreign exchange investment, binary options, stock markets, money markets and diamonds. They all have different features and benefits. Some have quicker returns and for others, you have to be really patient to get any returns. The best form of investment is one that poses less risk but produces high returns.
Foreign Exchange Market (FOREX) is the world’s largest financial market that accounts for more than $4 trillion average traded value daily.
The exchange rates fluctuate constantly throughout the week as currencies are actively traded. Moreover, market price of currency is different from the bank rates exchange rates. Banks and other financial institutions earn revenue from forex trade by marking up their exchange rates compared to the market exchange rates. Generally, FOREX investment is less risky and earns quick revenue.
Binary option investments have a number of benefits which include controlled risks, accessibility, profitability, simplicity and personal benefits.
The binary nature of options ensures that investors know how much they risk losing. Moreover, investors buy contracts, not the assets themselves. This opens up the profits of binary options trading to a larger audience who would have been constricted by high prices. An investor is more likely to make larger profits from binary options since the revenues are not linked to the difference in price but rather to the change in direction.
Moreover, with binary options, you do not need to have detailed knowledge about an asset to benefit from its price changes. Revenues rely on the direction of asset change.
The stock market has its benefits and disadvantages in comparison to other investment options.
Stocks are a lucrative investment for people who have done their research intensively and extensively. Investing in stocks in the right companies could lead to very high returns. Stocks are also highly accessible since there are so many companies that take part in the stock market. Stocks are easily converted to money unlike investment in diamonds. Stocks also have reduced taxes on losses.
However, investing in stocks can be time consuming given the research and investment analysis needed. They are also subject to higher risks, especially with their dependence on the performance of a company and stock market volatility.
Real Estate investment is one of the investment options with the quickest returns.
Buying real estate allows you to rent and build income from the tenants or sell right away for a higher price. Leveraged ETFs are a simple way to use investment leverage and get quick revenue. Investments with quick returns are usually short term investments.
Long term investments on the other hand depend on yearly or biyearly returns. Long term investments are subject to inflation rates. Diamond and gold are long term investments that are capable of surviving the worst of inflation and fluctuations in stock prices. Longer term investments also enjoy tax advantages on capital gains.