For most people, it is a better idea to just own a general stock market index. However, I like taking risks and love learning about companies and taking bets on their futures, so picking stocks suits my profile better.

On the other hand, I do use stock market index funds instead of keeping my money in the bank. Granted, that is also a risky strategy for most people, but I’m aware of the implications and am comfortable with the choice.

Buy stocks on DEGIRO

The way I look at the markets, I see 5 categories of stocks:

1. Growth Stocks

These are my favorite kind of stock. That doesn’t mean they’re the best or the right choice for you. I have a very high risk tolerance and love the feeling of ambitious growth, and these companies tick those check boxes for me. These are companies that reinvest all of their earnings into themselves to facilitate the growth of short/long term internal projects or acquisitions.

The best examples are classic tech stocks (also an area in which I have direct expertise), but with time, pretty much every company is becoming a tech company. What I mean by that is that if you look carefully at how companies operate, you will find that most companies already have their main asset and moat lying in the technology they’ve developed to help run their business, even though the end product or service might not be a highly technological one.

Examples: Shopify, Zoom, Facebook, Netflix

2. Cyclical Companies

These are stocks that are highly correlated with the overall state of the economy, because they provide services and goods that are elastic, meaning that people buy more of them when things are good and less when times are tough. Interestingly, over the COVID-19 lockdown period, we’ve seen some of these companies, especially those related to logistics and shipping) move inversely to the prevailing economic climate. Danaos was one such stock.

Apart from a few specific plays that I’ve made, like Danaos at the start of the lockdowns, I generally avoid these stocks.

Examples: Cruise liner stocks, airline stocks

3. Blue Chip Companies

Blue chips have been around for a long time, typically 25 years plus, have stable earnings and probably also have a stable to slowly rising dividend. with excellent reputations who have been around for a long time, have stable earnings and typically pay out dividends to investors.

They’re great if your goal is to achieve passive income to either supplement your salary, or to retire completely from your day job. You’ll find many blogs online about these kinds of companies. Just search for “dividend investor” and similar keywords. They’re probably the favorite investment of those who are enamored with the FIRE Movement.

Blue chip companies are not a personal favorite of mine, at least not for the time being. However, I think they’re a great option when you’ve reached your net worth target and want to derisk and live off your wealth.

Examples: IBM, Coca-Cola, 3M

4. Speculative Stocks

These are also favorites of mine. Such companies are characterized by having large potential upsides but also downsides. They are companies whose stock price tends to be extremely volatile and they will add definitely add extra risk to your portfolio.

I would only recommend investing in these types of companies if you are comfortable taking risks, have taken precautionary measures to protect your family’s wealth, and you don’t mind following the companies and their stock prices closely, in order to sell if the stock price pumps beyond your target price (I wouldn’t set limit sell orders as you might end up selling too early). I also think that you need to understand what the company does at a deep level in order to have any real conviction about the future of the company or the sector, else you’re just gambling away your money.

Examples: Mobility stocks like Tesla, Nio, Blade, biotech like CRISPR, and crypto plays like Microstrategy, Hut 8 Mining, Riot Blockchain.

5. Defensive Stocks

Defensive stocks are stocks of companies that have a solid reputation, have existed for many years, and provide non-cyclical products or services that people not only want but need. Thus they can be considered to be mostly impervious to the ups and downs of the market cycle.

I like having a few of these stocks sprinkled in my portfolio, and as my total stock valuation grows I expect that I will buy more of these and less growth or speculative stocks.

Examples: Walmart, McDonald’s, AT&T, Verizon, Proctor & Gamble

My Favorite Stocks

Now let’s move on to my favorite stocks, most of which are to be found in my portfolio. Note that I have many stocks that I like and follow, and will continue adding to this list, but I decided to publish the article rather leave it pending.

As I mentioned while describing the different kinds of categories of stocks, my favorites at the moment are growth and speculative stocks. You’ll see that most of my portfolio consists of these stocks, and most of them are tech-related, as that’s my area of expertise.

This is by no means a guide to what you should invest in, and I am sure there are a million arguments against my choices, but this is what works for me. When investing in any asset class, my strategy is to invest in businesses or assets that I like, because that is the only way to get myself interested in learning about them and provide enough enjoyment to invest on a long-term basis.

While my stock category preferences and individual sticks might not be a good fit for you, I really recommend taking the time to think about what excites you and whether you even want to be hands-on at all with your stock investments. If you have zero interest in stock picking and monitoring, you might be better off just picking an index fund and letting the market do its magic over time.

I will try to update this section at least once a year so you’ll have an idea of what I currently hold. I do move my allocations around and can sometimes exit a company altogether, sometimes for good, and sometimes temporarily when I consider that funds are better allocated elsewhere for a certain time period.

Activision Inc. (pending acquisition by Microsoft)

Activision Blizzard (NASDAQ:ATVI) is a video games company. They have a large portfolio of successful games, including Call of Duty, Crash Bandicoot, Spyro, Diablo and Overwatch. 

The company has been regularly issuing dividends over the past years. The yield is below 1%, however, there have been raises announced and the company has a growing cash pile ($5.9 billion as at end of Q1 2021).

Alibaba Group

Alibaba (NYSE:BABA) is China’s largest e-commerce company and the top cloud-infrastructure service provider. It’s basically the Amazon of China. The group comprises several big names in the Chinese market, including Aliexpress, which is probably the most known e-commerce brand in the West.

The Alibaba stock tumbled in late 2020 and 2021 due to regulatory headwinds and fines decreasing investors’ confidence in the company. However long-term prospects are good as the company continues to expand its reach in different market sectors. The big risks are the US-China tensions as well as the regulatory risks in both the US and China for this company.

An alternative stock could be Baozun which is less subject to regulator scrutiny due to the nature of its business, or even Baidu, which can be thought of as the Google of China. More Chinese stock ideas can be found here, and you can also buy the EMQQ index ETF that includes not only many of the best Chinese tech companies but also those of other emerging markets.

Alphabet Inc.

Alphabet Inc. (NASDAQ:GOOGL) is an American multinational conglomerate headquartered in Mountain View, California. It was created through a restructuring of Google on October 2, 2015, and became the parent company of Google and several former Google subsidiaries. The two co-founders of Google (Sergey Brin and Larry Page) remained as controlling shareholders, board members, and employees at Alphabet. Alphabet is the world’s fourth-largest technology company by revenue and one of the world’s most valuable companies.

The main subsidiary holding is Google, but there are other notable companies in the group including YouTube, DoubleClick, Waze, Fitbit and Nest.

In 2021 they posted excellent results with a huge increase in revenue compared to the previous year. This is one of those stocks that I plan to continue piling cash into on a long-term basis as it has all the characteristics of a solid company with significant moats and a great leadership team.

Apart from being a solid financial bet, I also like this stock as Alphabet owns several companies that are a bet on the future. I’m the kind of person who is more likely to stay interested in something if I’ve got real money invested in it. So if you want to keep updated on what’s coming next, owning Alphabet gives you an extra incentive to stay informed. For example, one of the companies under Alphabet is Calico, which does a lot of research that aims to solve aging. That’s something that I think a lot about and a topic that I’m extremely interested in, so I love the fact that I can own a part of this company through my Alphabet holding

There can also be an argument made that owning Alphabet can be a good entry into startup investing. This is due to the fact that Alphabet also features two companies that focus on startups: GV and Google Capital.

GV is Alphabet’s early-stage venture arm. Formerly known as Google Ventures, GV has more than $4.5 billion under management and has invested in more than 400 companies, including Uber, Lime, and Slack.

Google Capital — now known as CapitalG — is Alphabet’s growth equity investment fund. Its mission is purely financial returns, but unlike GV, CapitalG focuses on later-stage startups. Some of its investments include Airbnb, Glassdoor, and Thumbtack.

As a potential risk for this stock, you should look at the lawsuits that the company keeps getting hit with, mostly concerning anti-competitive practices. On the other hand, the company has a huge cash hoard and its core businesses have a sustainable future ahead with lots more growth potential.

Amazon.com Inc.

Amazon (NASDAQ:AMZN) is another stock that I plan to continue investing in regularly over the next months and years. I think founder Jeff Bezos is an exceptional entrepreneur and leader and I am a big user of Amazon’s services myself since the early days. This means that I have become really familiar with its products and services over the years.

Amazon also has several branches like AWS and Whole Foods, apart from the Amazon.com online retailer site we all use. Like Alphabet, this is a stock that I consider a blue-chip stock that I can keep investing in every few months whenever I have any spare cash, without needing to do a ton of research before I put in the money.

Apple Inc.

Apple (NASDAQ:AAPL) is another stock where I’m a big fan of the company’s products and services, and while it feels more restricted in terms of its range of business when compared to Alphabet and Amazon, I also feel very comfortable DCAing into it over time.

Blade Air Mobility

Now here’s an interesting one. Blade (NASDAQ:BLDE) is one of my big bets for the future. Blade offers air transport, currently using helicopters, from the city centers to the airports of major American cities. There is lots of growth potential with this company, although a substantial risk too as it’s a novel concept that has also been hurt by the pandemic’s effect on travel. I acquired this stock while it was underperforming the S&P 500 index, but as I said I’m quite bullish on its growth prospects.

The company’s CEO, Rob Wiesenthal, has loads of experience. Until June 2012, Wiesenthal was Executive Vice president and Chief Financial Officer of Sony Corporation of America, Executive Vice President, Chief Strategy Officer, Sony Entertainment Inc., and Group Executive, Sony Corporation, leading corporate development, and mergers and acquisitions. From 2012 to June 2015, he was Chief Operating Officer of Warner Music Group. Read more about the company on the Blade Air Mobility website.

Coinbase Global

The Coinbase (NASDAQ:COIN) IPO was one of the most anticipated IPOs of 2021, but it ended up being a flop, as the price tanked soon after the IPO, probably due to unfortunate market timing (the Bitcoin price suffered a huge dip soon after the IPO). Nevertheless, I strongly believe that this company has a great future ahead. It’s been one of the early pioneers in the crypto space, building an exchange that was and is friendly with regulators. While other exchanges have chosen to operate on the edge of legality or to seek lax jurisdictions, Coinbase operated from the US and was happy to comply with all the required regulations, while also being cautious about which coins to list.

Over the years it has also diversified its services, and while most of the revenue still accrues from retail trading activity on the exchange, services like custody will probably play a bigger part in the future, especially since institutions feel comfortable about working with Coinbase, given its sterling reputation in the space.

ConocoPhilips

ConocoPhilips (NYSE:COP) is an energy play, specifically in the oil sector. I bought it following the dip due to COVID, with the idea that demand would return, production would resume and oil prices would re-stabilize, which is what eventually happened. I love to spot opportunities like these where temporary situations in the market hammer a company’s prices, because it’s usually an easy win if I’m able to wait a year or two. It has a huge cash position and will be distributing this back to shareholders through share buybacks and dividend distributions. Longer-term I see this being a cash cow for many years.

CRISPR Therapeutics

Headquartered in Zug, Switzerland, CRISPR Therapeutics (NASDAQ:CRSP) is a long-term play in the gene-editing therapy niche. This company is one of the pioneers of gene editing. Gene-based medicine is one of the big life improvements that I look forward to in the next decades, but these are still early days. Therefore I’m not counting on this company for stable returns in the coming years, but only use it in order to diversify my portfolio and because I am interested in the technology and its applications, hence owning a stock will increase my incentive to keep tabs on what’s happening in the space.

Danaos Corp.

Danaos (NYSE:DAC) has been one my best-performing stock picks so far, although it came as a surprise. I didn’t expect it to perform as well as it did. Based in Greece, the Company is an international owner of containerships, chartering its vessels to many of the worlds liner companies. This purchase was one that was clearly driven by the COVID issues in the supply chain. It was a bit of a wild bet but it certainly paid off so far.

Enbridge Inc.

Enbridge (TSX:ENB)(NYSE:ENB), in my opinion, is a great income and growth stock and I consider it to be a long-term investment that is on the safer side.

Enbridge hauls a quarter of all crude destined to the U.S. market, as well as one-fifth of the natural gas consumed by the U.S. market.

The company issues a nice quarterly dividend, has growth potential both in its core competency of energy pipelines as well as renewable energy.

In recent years, Enbridge has invested heavily in renewables, making it a significant player in this new market as well, where growth is to be expected.

Certainly, for those who are excited by yield-generating investments, Enbridge woul be a top pick.

Fastly

Fastly (NYSE:FSLY) is an edge computing and CDN provider. It has been a losing bet for me so far, since it lost most of its price momentum and went on a downward spiral this year. However, I remain bullish on the company. It’s clearly a growth stock that has performed better in the past thus driving up the price, while now the prospects don’t seem as hot anywhere, but it’s still a growing market and Fastly is a good company in terms of management and services offered.

Fidelity National Financial

Fidelity (NYSE:FNF) is an insurance provider in the US. It is actually one of the biggest companies in the housing market but it is overlooked by many inestors. This creates an opportunity as Fidelity is involved in nearly one-third of all home purchases and refinances in the United States. As the housing market is expected to remain hot for quite a while, Fidelity National Financial should continue to see large growth in its business. While the stock has outperformed the broader market over the past year, it still trades near its steepest discount in years, so I will probably hold this for a while.

Galaxy Digital

Galaxy Digital (TSX:GLXY), spearheaded by the charismatic Mike Novogratz, is the type of company I like. It’s involved in several aspects of cutting-edge technology, mostly in the crypto space. Galaxy Digital is a merchant bank that offers multiple cryptocurrency-focused services for institutional investors. The firm recently bought crypto custodian BitGo (another company I followed closely) for a whopping $1.2 billion.

Galaxy’s platform includes principal investing, asset management, trading, advisory services, and bitcoin mining. Galaxy has also partnered with Morgan Stanley and is in the process of getting listed on a US exchange. I’m very bullish about this company along with the crypto space in general.

Roblox

Roblox (NYSE:RBLX) is a company that sits at the intersection of gaming and the creator economy. This is a new and novel way of creating games at its core. While traditional computer games can take years and millions of dollars to produce, Roblox is allowing its own players to craft the game. Almost all of Roblox’s games come from its 8M creators.

There are two main elements that make up the Roblox experience:

1. A game engine called Roblox Studio used by creators and developers to create games, social experiences and customization items.
2. A game client and an app store called Roblox Client used by players to manage their friends’ relationships, customize their avatar and access an apps store to pick the next game they want to play.

It’s not a new company, having been founded in 2004 and launched the first version of the game on PC in late 2006. However, it has achieved a big yearly rise in popularity since 2016.

Nowadays it has 43M daily active players, half of which are under 12 years old (interestingly, almost with a 50/50 split in genders). These kids are hanging out with their friends in Roblox instead of on social media. While you might be concerned about these kids and think that maybe they would be better off socializing in the real world, I’d argue that socializing within a game is better than on social media anyway.

Here are the top 10 savings wish lists for American kids:

1. Lego
2. Phones
3. Fortnite
4. Roblox
5. Nintendo Switch
6. PlayStation
7. Dolls
8. Xbox
9. Computer
10. Bike

I think that list is enough evidence that gaming is huge and therefore I definitely want to make some heavy investments in the gaming space. Gaming has several sub-niches, with the metaverse being probably the newest.

Roblox is definitely a metaverse play for me, as I’m very bullish on metaverses within the next decades. Roblox is in a great position to be one of the first big players in this space. The fact that this company  has been building its product for 17 years is a very important thing for me, since the dawn of a new niche in the economy is always filled with lots of hype and projects that never go anywhere. Roblox has what it takes to go all the way.

Zillow

Zillow (NASDAQ:ZG)(NASDAQ:Z) is a group of nine brands that cover almost every aspect of buying and selling houses.

I love how open the property market is in the USA, and Zillow is a prime example of how easier it is to do real estate transactions in the US compared to Europe, for example.

Selling a house to Zillow is pretty simple. Any willing party can jump on the website, type in their address, answer a few questions, and within days receive a “Zestimate.” If it’s satisfactory, the company conducts a free in-person evaluation, and if both parties agree, it will make a cash payment to close the deal.

That to me sounds like a huge saving in stress and bureaucracy. The overall ibuying trend has proven to be on a growth curve as well, so prospects for Zillow look good.

The stock has been punished in 2021 but long-term prospects remain good. While in the past the company has not been profitable as it focused on growth, this year we might see some profits. I’m happy to take a wait and see approach on this stock and remain confident for the coming years.

Zoom Video Communications

Zoom (NASDAQ:ZM) became a household name in 2020 during the pandemic, as education and workplace meetings moved online, relying on Zoom and similar tools.

However, I only invested once the pandemic was well underway, and ended up making some big losses after the stock tanked.

Growth for Zoom is slowing, and that is the major reason why the stock price has tanked, even though the company posted good profits.

I’m not sure about the stock’s future prospects to be honest. Maybe Zoom will get acquired by one of the big tech names like Facebook or Microsoft, or maybe it will find ways to continue growing spending among existing customers.

Other Favorite Stocks

I’ll list more favorites here and write about them in more depth when I have time:

• Block – payments and crypto rails
• Duolingo – language learning
• Hut 8 Mining Corporation – Bitcoin mining
• Interactive Brokers – stock broker
• JD.com Inc. – eCommerce
• Marathon Digital – Bitcoin mining
• Mastercard Inc. – payment technology
• Mazda Motor Corporation – motor vehicles
• Mercadolibre Inc. – eCommerce in latin america
• Meta Platforms Inc. – aka Facebook
• Microsoft Corp. – software
• National Atomic – uranium producer
• Netflix – home entertainment
• Nike – sportswear
• Nio – electric vehicles
• Nvidia – graphics cards
• Organon – women’s health
• Pinterest – social media
• Riot Blockchain – Bitcoin mining
• Robinhood Markets – stock broker
• Shopify Inc. – eCommerce platform
• Silvergate Capital – bank
• Snowflake Inc – cloud computing
• SoFi Technologies – financial services
• Squarespace Inc. – web publishing
• Taiwan Semiconductor – chip maker
• Teladoc Health Inc. – virtual healthcare
• Tesla Inc. – electric vehicles
• Unity Software – gaming
• Visa Inc. – payment technology
• Walmart Inc. – retail
• Wix.com – web publishing

Let me know your thoughts on whether I’m missing out on your favorite stocks or whether you disagree with my picks. All comments welcome.

The 4 Golden Rules of Effective Portfolio Management

If you have read any advice on how to properly manage your investments before, the advice to “diversify your portfolio” would almost always come up, and with good reason. The adage that warns us to ‘not put all of our eggs in one basket’ is a wise one because it guarantees that we at least get some of the eggs back should we lose any one of the baskets. Diversification is not a complete safeguard against asset loss, but it is one of the best ways to manage your risks in the long run.

There is, however, such a thing as bad diversification, which happens when you lose most if not all your assets to startups or investments that fail. Most equity crowdfunding websites have safeguards that allow investors to get their investments back, in whole or in part, should the campaign sponsor default. However, losses are a reality everyone has to deal with at one point or another when it comes to equity crowdfunding.

The only real way to combat bad diversification is to make sure that you are managing your portfolio correctly. Here are four easy rules that you can follow to achieve that goal:

1. Only Invest in Companies You Understand

This is very important. The more you know about the company and the sector in question, the better informed you are at predicting your outcomes and come up with justified valuations in turn. Also, the fewer things that you don’t understand about the business, the higher the transparency between you and the company will be. Granted there isn’t much information on the majority of startups available on equity crowdfunding platforms, so you will have to do as much research as you can about the industry and seek to get in touch with the people involved when you can.

2. Only Invest in Companies You Trust

The first point deals with the potential of the companies you invest in; this one deals with their track record. Have they committed fraud in the past? Is there something fishy going on with their financial statements? Are their rates too good to be true? You have to have some degree of confidence in a company’s ability to deliver on what they promised before investing, and there’s only one way to establish that, and that is by gaining insight through research.

3. Only Invest with Platforms with Failsafes

Nearly all platforms have some manner of failsafe for investor losses on the event that a company or campaign sponsor defaults or fails to reach the funding goal. Most equity crowdfunding platforms return the investors’ money in full should a campaign die before it is realised. Not all platforms are created equal, however, and some offer better protection than others. Right now, platforms that heavily vet the companies they curate for the site are far more secure than investor-led sites.

4. Only Invest What You Can Afford to Lose

This isn’t at all groundbreaking advice: as mentioned earlier, losses are an inevitability in any investment scheme but are more common in crowdfunding. As a rule, don’t invest any amount of money you are not prepared to lose, especially in a high-risk environment like equity crowdfunding. Remember that investing is a lot like gambling, and using money that puts food on the table to play poker is just plain irresponsible.

When it comes to investments of any kind, insight is synonymous with foresight. If there’s any secret to guarding against investment risks, it’s that the more you know about things as they are now, the better you can predict your turnouts in the future. For that, doing your research and keeping a level head is vital: the former protects you from bad investments, the latter keeps you from losing it all – always a winning combination.

Open a Moneyfarm account

In the current financial landscape, identifying the right investments for your risk profile can be a complicated process. After all, there are dozens of asset classes and thousands of financial instruments at your disposal. In addition, obtaining professional advice can be somewhat expensive.

Moneyfarm was designed to help you discover a smart and simple way to invest.

In this review, I am going to talk about Moneyfarm from top to bottom. On top of covering how the platform works, I’ll also explore what its charges are and how you can use the provider to benefit from its diversified investment products.

Moneyfarm – An Overview

MoneyFarm is a digital wealth manager that is now based in London. The platform was first founded in 2011 in Italy in order to offer savings management services post the 2008 financial crisis. After its initial successful years, the company opened its UK branch – receiving authorization from the Financial Conduct Authority (FCA) along the way.

Today, the company has emerged as a pan-European digital investment manager with over £1 billion worth of assets going through the platform. Moneyfarm aims to offer you active management tools for your investment funds. Meaning, the platform will build you a diversified portfolio based on your unique financial goals and change it according to your evolving needs.

In addition, the Moneyfarm team will make adjustments to your portfolio based on the current shape of the wider financial markets. In order to achieve this, the platform requires you to complete a survey when you join the platform. The data collected will be used to gauge your risk appetite and then develop a portfolio that matches your profile.

You can then choose to invest a lump sum amount or set up monthly contributions. Once you have activated your profile, the in-house team at MoneyFarm will professionally manage your portfolio and rebalance it as and when required.

How Moneyfarm Works

MoneyFarm has a total of seven pre-designed portfolios that are actively managed by its investment experts. These are defined based on the risks involved – from level one to seven.

Each portfolio is made up of Exchange Traded Funds (ETFs) from market-leading providers. You can see the performance of each ETF in great detail directly on the website, including the investment strategies used by MoneyFarm to make financial decisions.

Notably, the one thing common across all the different portfolios is that each one is heavily diversified. This is to save you from excess volatility and thus – ensure that you are not overexposed to a single marketplace.

In order to get started with MoneyFarm, you will have to complete the following steps:

Step 1: Build your Investor Profile

After creating your account by providing your email address and password, you will be required to complete a short survey. This includes some simple questions such as the range of your income, your risk tolerance, and your attitude towards investing.

Note that you will always have the option to change your priorities at any point in time – even after you have already invested. The team at Moneyfarm will then make the required adjustments in your portfolio to meet your current needs.

Step 2: Invest in your Matching Portfolio

Once you complete the questionnaire, Moneyfarm will point out which type of portfolio will be most suited to your investing style. As I mentioned before, MoneyFarm has seven globally diversified portfolios – each containing a handpicked mix of ETFs.

The platform will then recommend a portfolio that is perfectly matched to you. You will also be given two additional options so that you can decide if you want to adjust your priorities. At this stage, you can select a portfolio and make the investment.

Moneyfarm allows you to fund your account using bank transfer and Direct Debit. Crucially, if you already have other investments, Moneyfarm can actually help you consolidate them on the platform. This service allows you to transfer any ISAs and pension funds you might have already invested in with other providers.

This will make it easier for you to keep track of your investments while lowering your overall costs. Moreover, this service is provided for free on Moneyfarm.

Step 3: Benefit from Active Management

Once you have funded your portfolio, your money will automatically be put to work as per the ETF investment choices outlined to you. Depending on continuous market analysis and performance tracking, the team at MoneyFarm will actively manage the entire process for you.

In addition, you will also have access to a dedicated Moneyfarm investment consultant who will be at your disposal if you have any questions at all.

Moneyfarm Investment Products

Stocks and Shares ISA

For those unaware, the term ISA is used to describe an Individual Savings Account – a tax-free account in the UK that allows you to invest and save money. There are different types of ISAs available in the financial market, and the right one for your portfolio will depend on your specific needs and current circumstances.

As you can imagine, Stocks and Shares ISAs allow you to invest in a variety of traditional assets like shares, trusts, and bonds. It can be one of the best ways for you to grow your money over the long term in a tax-efficient manner.

That said, when you invest in ISAs – the only condition is that you can put up only up to £20,000 per year. This can also vary depending on UK government regulations.

Moneyfarm Pensions

Investing in Moneyfarm Pensions is another way to secure your future while claiming tax relief. Depending on your tax status, you can instantly claim up to a 25% boost. You can plan the Pension portfolio based on when you are aiming to retire.

The Moneyfarm team will manage your portfolio to maximize the returns for the target date while reducing the risk as retirement approaches. From the age of 55, you will have the option to withdraw up to 25% of your pension on a tax-free basis.

Moneyfarm also offers the flexibility of investing in a pension fund by yourself or setting up employer contributions. You can also transfer pensions from other accounts, including from SIPPs and workplace schemes – as long as you haven’t started collecting the income from them.

If you want to look past ISAs and pension funds, then that is where the true power of Moneyfarm lies. As I mentioned earlier, the platform will allow you to choose from one of its pre-defined portfolios based on your risk appetite. You can choose to make a single investment or set up direct debits from your bank account.

Moneyfarm Minimum Investments

With Moneyfarm, you will need to make a minimum investment of £5,000. Alternatively, you can also choose to invest £1,500 first and pay the rest through direct debits each month.

Now, if you are wondering why they need that level of money – it is primarily because the platform is trying to build you a fully diversified portfolio with active management.

How Moneyfarm Manages Portfolios?

As an investor, one of your prime concerns might be what the investment strategy of Moneyfarm is. In order to answer your concerns, Moneyfarm is completely transparent regarding the guidance it offers. According to the website, each Moneyfarm portfolio is made of liquid investments spread across global equities, corporate bonds, and commodities.

Every financial decision the team makes is based on research and data gathered from quantitative techniques and qualitative judgment. In addition, the team also takes into account the volatility of each asset and how any political or economic developments might affect its market. To facilitate transparency – the platform clearly presents a breakdown of each of its portfolios, based on the percentage of your funds allocated to which financial instrument.

You can also review the returns available from each option. This will include the annual returns, an all-time average, and its competitors’ equivalent. You can also analyze the performance of portfolios based on any specific period of time. Moreover, Moneyfarm also gives you access to its previous years’ earnings reports so that you can compare them to other financial platforms and make your own decision.

At this point, it is crucial to remember that Moneyfarm is actually making you a recommendation. Now, compared to the other financial advisor platforms, this makes Moneyfarm unique. As the platform is regulated by the FCA, it has to strictly follow regulatory guidelines before suggesting any investment plans to you.

Moneyfarm Pricing

In terms of the costs associated with Moneyfarm – the platform charges only charges a single monthly fee. This will depend on the amount you are investing. In order to give you a better understanding, this fee is based on two different charges.

One is the management fee, which covers the cost of actively managing your assets. And the second is based on the market rates of your chosen investment. For instance, when you invest in ETFs, you will be required to pay a fund fee as well as a market spread.

According to Moneyfarm, its fee structure is broadly classified into four categories:

• Up to £10,000 – 0.75%
• From £10,000 to £50,000 – 0.60%
• From £50,000 to £100,000 – 0.50%
• Above £100,000 – 0.35%

As you can see, the higher your investment amount, the lower the fees. If you need a more accurate list of charges, Moneyfarm also has a fee simulator. This will offer you the exact fees involved with your specific investment amount.

Moneyfarm Customer Service

Perhaps the most important aspect that sets Moneyfarm apart from its competitors is its customer service. Although almost all financial platforms allow you to access support, not many offer you the chance to speak to an expert who can actually offer you financial guidance.

Now, as I mentioned earlier, Moneyfarm has dedicated financial consultants that can offer you more information on your investments and how you can maximize your returns. You can fix an appointment with an advisor by selecting a convenient date and time through the platform.

Alternatively, you can also connect with the service team through live chat or email. This feature can be crucial if you are a beginner in the financial space that is seeking help to make an investment decision. This demonstrates that Moneyfarm is entirely different from the typical robo-advisers you will commonly find these days.

In addition, the platform also has an extensive set of guides and ebooks that can help you with investment choices, no matter your experience. Moneyfarm also has a mobile app through which you can assess all its features and contact customer support with ease.

Moneyfarm Security

Needless to say, when considering this financial platform, it is crucial to analyze the security and safety features offered. And as it goes, Moneyfarm has advertised prominently on its website that it is regulated by the FCA, and you are also covered by up to £85,000 via the UK’s FSCS.

In fact, Moneyfarm makes it clear that all your personal capital is deposited and protected by Saxo Bank, a Danish investment bank with operations in 180 countries around the world. This implies that your funds are safe in a separate client money account, with a reference unique to you.

Put otherwise, if the worst happened and Moneyfarm goes out of the business, then you can rest assured that your deposits are secure under this scheme.

Moneyfarm – The Verdict?

Moneyfarm is best suited for those who do not have sufficient time to research the markets regularly and make informed investment decisions. This platform allows you to invest your money without the hassle of having to pick assets or monitor things by yourself.

As Moneyfarm offers active management, you can be sure that during a market downturn, your portfolio will be automatically adjusted in order to minimize potential losses. Moreover, the advantage of direct access to an expert financial consultant is not a feature that is commonly available across financial platforms today.

For the charges you pay, what Moneyfarm offers is potentially worth considering. All in all, if you want to allocate money knowing that it will be in the hands of an experienced financial advisor, then there is no reason why Moneyfarm cannot be your go-to investment platform.

Open a Moneyfarm account

If you have little time but want to learn how to trade stocks in less than two hours a day, this guide is for you. You may already be trading stocks, but how practical is it to compress your trading hours and still achieve success?

Depending on your experience of trading stocks, it’s easy to feel overwhelmed.

How do you know what stocks to choose and how to manage open trades?

This guide will set out a simple plan for trading stocks in two hours or less. I’ll highlight suggestions for a trading plan and a few simple strategies to help you get started.

[Read more…]

The financial markets have recently gone through a topsy turvy time directly linked to government spending and liquidity flooding due to the global Covid-19 pandemic. While this has seriously impacted financial investors, it has also created new opportunities for innovative European traders looking to invest in stocks, exchange traded funds (ETFs), and crypto, among other assets.

Seasoned traders will tell you that brokers in Europe offer some of the best trading platforms with strict regulatory measures to protect trader’s investment and ever-decreasing transaction fees. As a result, many new brokers are looking to invest in the European trading market.

However, this growing number of traders has also led to a rise in new brokers looking to benefit from the increased traffic. So, how do you differentiate the good legit brokers from those looking to scam your hard-earned cash with ridiculous commission fees on Europe’s trading scene?

Here’s a list of what I consider the best low-commission trading brokers in Europe right now. With this list and plenty of educational material to supplement your research, you’re set to start trading like a pro.

Disclaimer – I do not provide investment advice on Contract for Differences (CFDs) as they are complicated and come with a high risk of losing your money. Around 74-89% of investor accounts lose money when trading CFDs. You must have a higher understanding of how CFDs work and consider whether you can afford the high risk of losing your money.

Best Low Commission European Trading Brokers

Are you looking at the top brokerages serving European traders? Here is a list of the best ones with free commission trading and low or zero withdrawal fees.

• DEGIRO – Zero commission broker with low fees on trades. DEGIRO offers some of the lowest fees on the market and is regulated by multiple top-tier authorities. It provides a web and mobile platform that is easy to use.
• Capital.com – A proprietary trading platform with over 2 million traders. This broker has processed over $18 billion in volume. You can also trade over 3,000 liquid assets on Capital.com across five sectors. It has special design considerations for experienced investors.
• eToro – Zero commission on stocks makes eToro the largest discount broker for European traders. Regulated by UK Financial Conduct Authority (the FCA), CySEC (EU), and ASIC (AU), the broker has over 12 million active users. Seamless account opening with social trading experience makes eToro a top choice.
• NAGA – With over 950 tradeable assets, NAGA is a multi-asset trading platform that offers Forex Trading, Indices Trading, Crypto Trading, ETFs, CFDs, Stocks, and Commodities Trading. Its fees are below the industry averages, making it a lucrative broker for all levels of traders.

DEGIRO – Top online trader and discount trading

Trade on DEGIRO

DEGIRO is a privately owned discount broker that was founded in 2008 in the Netherlands. The Dutch online trade platform is popular for its low trading fees and free monthly ETF trades.

Some of the top-tier authorities regulating DEGIRO operations include the Dutch Central Bank DNB and Netherlands Authority for Financial Markets AFM. Additionally, the company is duly registered by the Amsterdam-based Chamber of Commerce and Industry.

DEGIRO provides its users with bonds, options, stocks, ETFs, leveraged products, and futures. You will get access to about 50 world exchanges on this platform.

If the company’s claim on their website is anything to go by, they have industry-leading commission rates and a trading platform suitable for beginner trading. If you’re looking to cut on costs while trading, DEGIRO offers an easy-to-use platform worth considering.

Fees

Trading fees on DEGIRO are among the lowest, but you can only enjoy one monthly commission-free ETF irrespective of your trade size.

The good news is that DEGIRO has zero deposit fees and no limit on the account minimums. What’s more, it does not charge you for withdrawing earnings from the platform. DEGIRO is also one of the cheapest platforms for account maintenance – there is zero annual maintenance and custody fee charged.

On the other hand, just like many other brokers, DEGIRO charges a small fee on international ETF trading. The charge includes a €2 cost in addition to 0.03% of the value of your order. The charges on stock trading vary widely, but they’re lower than the industry averages.

For instance, trading stock on the London Stock Exchange will cost you €1.75 and an additional 0.022%. If you were to go for another broker, say Xetra, it would cost you €4.00 and an additional 0.05%.

On DEGIRO, you’ll part with €2.5 as an annual connection fee for each exchange – except for the Irish Stock Exchange – and an extra 0.10% of the traded amount as a currency exchange fee.

DEGIRO features

• Low trading fees
• Products on offer include bonds, options, futures, shares, leveraged products.
• Regulated by AFM
• No minimum account deposits
• No inactivity fee
• 24-hour trading
• Supports EUR, CHF, GBP, NOK, SEK, CZK, PLN, HUF and DKK.

Trade on DEGIRO

Capital.com – Fund Safety through Segregation

Trade on Capital.com

Capital.com is an international brokerage with subsidiaries operating in the UK, Belarus, and Cyprus. This company started trading in 2018 after registering with the Financial Conduct Authority a year earlier. With subsidies in the aforementioned countries in Europe, Capital.com is regulated by the FCA, CySEC, and the National Bank of Belarus.

The platform serves clients from across different sectors as it is among the few fully segregated trading platforms. Capital.com segregates your funds at Raiffeisen and RBS; these are Europe’s leading financial institutions.

Capital.com also uses Prime Capital to serve institutional clients hence creating a deeper liquidity pool. For new traders, the brokerage gives you access to its educational platform, the Investmate.

This is one of the most secure trading platforms, with only 71.2% of account portfolios incurring a loss. This is considerably fair compared to many other brokers. Besides, accounts at this brokerage are audited by Deloitte.

Fees

The fees charged for trading with Capital.com are quite competitive — there are no commissions charged across the 3000 assets on offer. The exchange fee on the EUR/USD trades is at a low of 0.6 pips, and even better, no additional percentage fees are charged.

However, although you’ll be charged swap rates on positions leveraged overnight, this only applies to the borrowed amount and not the total size of the position.

Capital.com has some of the least fees on today’s trading platforms, making it a friendly and favourable platform to European traders.

Capital.com Features

• Zero commission
• No additional percentage charges on trades
• Low exchange fees
• Segregated client deposits
• World-leading accounting firm Deloitte audits accounts.
• Well regulated with Key Information Documents on their website.
• Three regulatory jurisdictions guarantee a secure trading platform.

Trade on Capital.com

eToro – Zero-commission on Stocks

Trade on eToro

Your capital is at risk. Other fees apply. For more information, visit etoro.com/trading/fees.

eToro was formed in 2007 and has grown to become the largest international broker with over 12 million traders. It provides EU and UK traders with commission-free trading on stocks and ETFs. The platform offers a wide range of products, including cryptocurrencies, indices, forex, and commodities, at very favorable spreads.

Having been in the industry for over 13 years, eToro stands out as a reputable trading broker. Three top-tier authorities regulate it, including ASIC of AU, CySEC of EU, and FCA in the UK. Due to the Cyprus Securities and Exchange Commission regulation of eToro, investors have up to €20,000 protection. The UK regulator, on the other hand, protects up to €85,000.

eToro has an active social community stream using the OpenBook. It gives users access to discussion groups

Fees

If you’re looking for an investment brokerage with the lowest fees, eToro beats them all. The platform charges zero fees when you open or close a stock trade. This is for the non-leveraged positions.

Additionally, traders on eToro can enjoy no mark-up, zero ticket fees, and free account management. Besides, with few restrictions, clients can enjoy large trade amounts on stocks.

It is worth noting that eToro’s USD-based accounts incur a flat rate fee of $5.00 on withdrawals. Unfortunately, deposits made in other currencies will have to incur an additional conversion fee.

eToro is a multi-asset platform that allows you to invest in stocks and crypto-assets as well as trading CFD assets.

eToro features

• Zero commission on stocks and low transaction fees
• Wide range of products, including forex, cryptocurrencies, CFDs, stocks, and indices
• Excluding Serbia, all other European countries are supported
• Regulated by FCA, CySEC, ASIC
• Minimum deposit amounts of $200
• Has a demo account for beginner traders to do some training
• Charges a $10 inactivity fee for accounts that stay logged out for a year
• Copy portfolios are designed to minimize your risk long-term while pointing you towards new opportunities
• Copy-trading is available
• Fractional shares are available

Trade on eToro

79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

NAGA

Trade on NAGA

Founded in 2015, NAGA is an online platform that offers multi-asset trading services in the EU. The Cyprus-based company offers cryptocurrency trading, forex trading, stocks, indices, EFTs, and CFDs. Although it is not considered a global brokerage firm, NAGA is publicly listed in the world’s leading stock market exchanges and supports over 650,000 trading accounts.

NAGA’s state-of-the-art trading platform comes with mobile trading apps and financial research tools. The broker charges commission fees on CFD instrumentals. What’s impressive, however, is that accounts on NAGA do not incur an inactivity fee even if they are not logged in for a whole year.

Fees

When trading on NAGA, clients incur withdrawal fees that vary depending on the amount of you’re withdrawing and the method of withdrawal selected. You can withdraw money from NAGA through bank wire transfer, Trustly, UnionPay, iDeal, GiroPay, EPS, Boleto, MasterCard, VISA, debit card, and P24.

Account openings on NAGA require a minimum deposit of $250. Higher minimum deposits come with additional premium services that traders can take advantage of. These premiums may not be freely offered on other platforms.

Relatively, NAGA’s minimum deposit is nothing compared to the industry averages. Some brokers require as high as 10,000 GBP/USD as a minimum deposit.

The minimum account deposit attracts zero fees on this platform which usually varies depending on your payment method.

NAGA Features

• Demo account for training purposes
• Stop Loss available
• Advanced financial chart as a comparison tool
• An interface built for Apple Mac computers as well as a web version
• Regulated by CySEC, FCA, and CNMV
• Zero deposit fees and zero inactivity fees
• Minimum deposit of $250

Trade on NAGA

Conclusion

Online trading allows you to invest your money in products whose performance you can track in real-time. Different brokerage firms vary in the way they charge for their services. These charges can be a deal-breaker when it comes to choosing your ideal platform.

DEGIRO is outstanding for its low fees and overall ease of use. Capital.com, on the other hand, offers an investment safety net with its funds segregation feature. eToro has an outstanding reputation as a commission-free platform with a plethora of features. Although NAGA comes last on this list, its zero-fee for inactivity and demo account makes it a darling of many novice traders.

That said, your favorite platform should be based on your needs. Generally, the brokers mentioned above provide the industry’s best services in Europe.

Investing in stocks, bonds, and ETFs involves risks including complete loss. Please do your research before making any investment.