Can you make it into the market?
It’s an open question in the stock market.
The big three — Apple, Microsoft and Amazon — have long dominated the market, but the latest results have given an opportunity for smaller players to enter.
In November, the US stock market experienced a three-month low, as investors were concerned about the economic and regulatory fallout from the Chinese economic slowdown.
That dip in the market followed a similar dip in December, as some investors turned to the stock markets to secure a better-than-expected earnings outlook.
The Dow Jones industrial average rose by 1.9 per cent on the back of that sell-off, while the S&P 500 gained by 3.5 per cent.
But what if you can’t get into the markets?
For most Australians, the stock exchange is where you go to buy shares.
The price of shares can fluctuate, depending on the market.
However, if you’re willing to wait for the market to settle, there are several options.
There’s the direct route: if you live in an area with high volatility, such as Queensland or New South Wales, you could buy shares directly.
Alternatively, you can purchase shares in an exchange, which is where the stock price is listed for you.
A common method is to use an ETF, which can be purchased by anyone with an account at an exchange.
However this may be a less convenient option if you want to make sure you are getting the best value for your investment.
ETFs are also available through the company’s online platform.
Some companies, such and Google, offer ETFs as an option, although it is not yet available for all investors.
ETF brokers can provide an investment account, which allows you to set your own withdrawal rate and withdraw your funds at a specific time.
Alternatively you can choose to open a direct investment account on a broker.
Direct investment accounts are usually more expensive than an ETF broker, but they do offer a higher rate of return.
However if you do decide to invest in an ETF account, there’s a small risk that the funds will be held by a brokerage that is not as reputable.
ETF brokerages can be accessed by entering your information into their websites.
These brokers offer several benefits over direct investment accounts.
The brokerage will help you to make informed decisions on whether to buy or sell shares.
You will be able to check the status of the ETF’s assets on their websites, and will have the opportunity to withdraw funds at any time.
You’ll also be able see how much of your investment is allocated to the ETF, and the amount that the ETF is required to pay out.
However the downside to investing in an IRA is that the brokerage fees may be higher.
For example, if your IRA invests $10,000, but your brokerage charges you $3,500, the brokerage will pay $3.00 per $1,000 invested, whereas if your brokerage only charges $3 a share, the broker will pay you $1.50.
It’s important to note that ETFs have a lower cost of capital, so the fees may not be as high as with a direct IRA.
For more information, read our article on ETFs.