If you have some spare money, then you may currently opt to let it sit in your bank savings account. While this is ultra-safe, it is also actually the worst way to put it to use! Becoming too risk averse in terms of your spare cash can see you miss out on some great opportunities to see it grow. Investing your money sensibly is a much better way of dealing with your surplus cash as it offers greater annual returns than the low rates that banks usually give.
Which are the best financial markets for investing?
In terms of investing for most people, the popular financial markets still give the simplest, most accessible and lucrative way to do it.
Here are four of the best ones to think about putting your money into now:
- Stocks – probably the most popular market to invest in is the stock market. Big exchanges handle masses of trades each day, with the NASDAQ boasting a $10tn market capitalization. Their strength and liquidity make them great for investors, while the sheer range of successful companies to invest in is also a big plus point.
- Foreign exchange market – also known as the FX or Forex market, this has a huge daily trading volume of around $5tn. Trading on this market is simple and done via online brokers, which anyone with a computer can use. Easy to grasp, it offers good returns and has enough liquidity to make any investment worthwhile.
- US Treasury bonds – one investment that many still see as one of the safest and most reliable are US Treasury bonds. This in effect sees you lend money to the US government through buying the bond for a set period. When the period is up, you get back your initial investment with any interest. The long-term nature and reliable returns of bonds are well-known and make them a great choice for part-time or hobby investors.
- ETFs – exchange-traded funds are funds made up of various asset classes, including bonds and stocks, which are then traded on the stock exchange. These are always a good investment as their diversified nature makes them less risky, and they are simple to use.
Make sure to keep up with the news
Whatever financial market you choose to invest in, it is vital to keep up with the latest news. They are all very sensitive to breaking reports or stories, which could in turn see your investments affected. Seeking out the latest news online is a great way to keep on top of it all. A really good stock site will enable you to find out the reports that may affect your shares, bonds, currency trades or ETFs.
Investing makes sense
If you still feel a little nervous about investing your money, there is no need. Once you have got going and know what you are doing, it all becomes much easier. If you would rather not handle the investments yourself, then there are even managed funds and professional brokers to assist you. It really does remain the best way to get your money working for you.