Small Investment Opportunities in Australia

small investment ideas australiaA considerable number of Australians don’t get involved in investing, largely due to the presumption that this financial venture can be quite costly.

The truth, however, is that there are a number of small investment opportunities in Australia.

Regardless of your current financial situation, you should be able to capitalise on any additional money that you may have. To learn more about these small investment opportunities, see below:

How Much Should You Invest

Now, one of your first questions might be regarding just how much money you should invest.

The answer depends on your current financial situation – you should invest as much as you can afford. So, once you have taken care of your monthly essential bills and paid off your debt, the remaining amount can be put towards your investments.

That being said, there is often a minimum acceptable amount for investments in Australia.

With any investment, there are often start-up and ongoing costs.

These include deposits, brokerage fees, and much more. So, for you to be able to actually make a profit, the amount you invest will need to be higher than all of these costs. So, if you are planning on investing, try to save up at least $500.

You will then have enough capital to make adequate investments and reap financial benefits as well.

Types of Small Investments to Make in Australia

In this section, you will be able to get a picture of all the small investments you can make as an Australian, and have an idea of just how much money you will need for that particular option.

Here are the top 5 small investment ideas in Australia:

1. Stocks

You will be able to get started in the Australian stock market with around $500 in your account. As mentioned before, you shouldn’t try to buy shares for less than this amount as the brokerage fees will negate any profits that you are able to make. Still, you can’t actually go to any broker and hope to buy shares with $500.

What you need, in this instance, is a discount online broker.

These online firms have very low brokerage fees as they offer limited services. Essentially, their main purpose is to place the trades for you and little else. Often, such brokers are best suited to investors who have a little more experience under their belts.

Nonetheless, if you are willing to do your own research and make an effort at educating yourself, you can manage this yourself. Here is our article on how to get into the australian stock market.

Of course, investing in independent stocks, especially with low capital, can be a rather daunting process. In case you are looking for a slightly more profitable avenue, you may want to think about Exchange Traded Funds or ETFs.

2. Dividend Reinvestment Plans

These plans are often known as DRIPs and provide you with a low-fee opportunity to invest in shares and stock in certain companies. Now, it should be noted that not every company has such a plan. The ones that do, however, allow you to automatically reinvest any dividends that you earn to buy more shares from the same organisation.

The reason that this can work for smaller investors is because companies will often offer these in their plans at a discounted share price. Furthermore, by opting for this route, you get to forego any broker’s commissions which will only add to your typical investing costs.

3. ETFs

There are ETFs that allow you to join for as little as $500 while some of the more profitable ones may require up to $1000. Nevertheless, you still get a rather low entry point while also being able to enjoy a number of advantages. The top benefit of ETFs is that you only indirectly have ownership of a particular asset. This is because your investment is pooled with others in the fund and a manager will determine how to direct that money. At the same time, you can easily diversify your portfolio with this option, without having to make any financial moves yourself. In this way, you can protect yourself against a certain level of risk.

Now, with ETFs, it is important to pick the right one, as you will need to beware of transaction fees and other costs associated with this type of investment. So, make it a point to go for one that you can afford, even if you are only choosing to invest between $500 and $1000.

4. REIT

Most investors would love to invest in property. Unfortunately, you often need a considerable amount of money to get involved in the real estate sector. However, this doesn’t have to be something that you have to avoid anymore. This is due to Real Estate Investment Trusts (REIT) where your money is pooled together with other investors. The total is then used to purchase various properties that you can’t afford by yourself.

While real estate can cost you hundreds of thousands of dollars, a REIT typically has a minimum investment of just $500. What’s more, many of the profits of the REIT are paid out as dividends which means that you have a fairly regular income to look forward to. Of course, it is important to understand all aspects of the REIT so you can be certain that you are making the right decision.

5. Opportunities for Up To $3000

Let’s imagine that you can afford to invest between $2500 and $3000 dollars – what are your opportunities then? In this instance, it is largely about how much risk that you are willing to incur when investing your money.

If you want to limit risk as much as possible, then a certificate of deposit (CD), may be a good option for you. This is a promissory note provided to you by a bank. Now, this type of investment is unlikely to yield you high profits as the associated interest rates are rather low. The advantage, however, is that you will not need to be concerned with any kind of loss.

In the event that you are willing to take a chance, there is peer-to-peer lending. As the name suggests, it involves you offering a loan to another individual, on an online platform.

There is a rather handsome interest rate attached to the money that you provide, ensuring that you get a good return on your investment.

Now, as you can imagine, you may stand to lose a lot of money should the borrower default on the loan. This is especially true if you provide an unsecured loan.

It is important that when opting for this opportunity, you only work with a platform that has an Australian financial services license. The platform should also be registered with the Australian Securities and Investment Commission (ASIC) to truly be a reputable P2P lending platform.

Choosing the Right Broker

With many kinds of investments, you are going to require a broker to be able to place trades. Now, when you have only a limited amount of money to invest with, you need to be careful about the broker that you settle on.

This is because, as mentioned above, there can be quite a few costs associated with investing.

Most of these expenses will involve your broker. For instance, they will set the minimum deposit that you can place in your account at any given time, regardless of whether you are trading or not.

Also, it is the broker who will determine just how little you can invest in any trade. Last but not least, it is these individuals who will tell you how much each transaction will cost, every time you buy or sell shares or similar types of investments.

Since you will be investing between $500 and $3000, you should look for what is known as online discount brokers.

These individuals offer incredibly lower prices, making them excellent entry points for virtually any Australian investor. You should, however, understand that these type of brokers will only be involved in placing trades. The rest of the work – including the research – will have to be undertaken by you.

Becoming Successful While Investing with a Smaller Amount

In this section, you will learn some helpful tips and tricks to help turn your initial capital into a much healthier amount:

  • Start Now: when you don’t have a lot of money to spare, it can be tempting to stave off investing until you have accumulated more. Or, you may be reluctant to spend the little extra money that you do have on investments. Well, if you are serious about having enough money to retire with, then it is imperative to begin right away. You are never too young or too old to begin investing. The earlier that you begin, the more profit you will be able to accumulate over the years.
  • Focus on What You Can Afford: it can be tempting to get involved with full-service brokers who can make investing a lot easier. Or, you may want to buy shares from ASX50 companies to reduce risk. Despite being great opportunities, these aren’t necessarily the best options for a small-time investor, at least not in the beginning. This is because you will end up spending a lot of money with very little payoff. So, for the time being, stick with what is within your reach, even if it may not feel like a glamorous choice.
  • Aim for 10 Percent: this article has largely dealt with how you can invest with as little as $500 if this is all that you can afford. The truth is, if you want to make a real impact with your investments, you should try to invest at least 10 percent of your monthly income. Now, this isn’t always possible for first-time investors but it is certainly something that you should strive towards. Try to curb unnecessary spending or find a way to reduce expenses in your life so that you are able to invest this amount without any problem.
  • Reinvest Your Profits: just because you choose not to partake in a DRIP, doesn’t mean that you have to avoid reinvestment. Instead, if you are getting paid dividends on an investment, try to reinvest at least a small portion of that back into the company. If this doesn’t feel like the right financial move, consider using your dividends to invest in another company or sector altogether. Remember, when you invest with a little money, there is a limit on how much you can earn – either in dividends or sales. Nonetheless, the more money you are able to invest, the greater the amount that you can get in return.
  • Understand Terms and Conditions: when investing with a smaller amount, you may find that you don’t have a great deal of financial guidance. This is why it is imperative that you learn as much as you can about any investment that you are about to make. So, whether you are looking to buy shares or invest in an ETF, make certain that you know exactly what you are getting into. You should be aware of all the current and future costs and expenses involved in this endeavor as well. At the same time, have a proper understanding of the risk involved with that particular form of investment.

As you can see, there is no shortage of options if you want to make a small investment in Australia.

With the right information at your fingertips, you can make financial decisions that are suitable for your current situation that will yield impressive results.

The main thing to do, regardless of what income bracket you fall into, is to start making investments now.

How to Get Into the Stock Market as an Australian

how to get into asxGetting into the stock market as an Australian can certainly be an overwhelming decision to make. Many ask: How can I get into the Stock Market as an Australian investor?

The Australian Stock Market is also called ASX or Australian Securities Exchange or simply Australian Stock Exchange.

After all, you probably aren’t aware of too many individuals who have followed this particular financial path.

This is because around 75 percent of the Australian population has never invested in shares. However, if this is something that you are considering, then you have come to the right place. Below, you will find out all that you need to know about getting involved in the stock market, in Australia:

Understanding the Australian Stock Market

Now, the first thing you will need to do before getting into the stock market is to understand how the Australian operation works. To do this, you need to have a better grasp of the major stock exchange platforms. You will quickly realise that it is the Australian Securities Exchange (ASX) is the country’s primary market operator. You can see the markets live here.

It is presumed that over a million trades take place on this exchange every day and that it has a daily turnover of about $5.6 billion. ASX has over 2,200 listed companies on its exchange and it is regularly considered to be amongst the top exchanges in the world.

For the longest time, ASX was the sole player in the Australian stock market but this changed when Chi-X was introduced in 2008. This is an alternative, regulated exchange that offers slightly different services from ASX. Chi-X allows investors the opportunity to buy and sell shares from all of the companies that are listed on the ASX. In addition to this, you can also trade in their own Warrants markets.

However, the caveat is that you can trade with other ASX listed products such as ASX Warrants, XTBs, and ETFs. With Chi-X, the largest daily traded value is over $3.4 billion. It is estimated that around 500,000 trades take place on the exchange on a daily basis.

If this seems to complicated for you, here are a few more investment ideas.

How To Pick an Australian Trading Broker

You can’t get into the stock market as an Australian, unless you have a broker who can place the trades for you.

In Australia, you have two main options when trying to pick a broker – a full-service broker and non-advisory broker.

As the name suggests, full-service brokers are an all-inclusive package. For one thing, they assist you with a detailed financial plan, depending on your current circumstances.

They will also offer advice when you buy or sell securities. Furthermore, they will provide the necessary recommendations and share research that is relevant to your situation. There is a minimum deposit requirement on every broker.

Due to all of the services provided by such brokers, the cost involved is a great deal higher as well.

So, you can expect to pay a higher brokerage fee, around $120 or more, for each transaction.

This avenue is most suitable for investors who are new to the stock market and want to gradually improve their trading capabilities. While full-service brokers can be expensive, they also offer guidance for those who don’t have any previous experience.

Which Trading Broker to Choose?

Non-advisory brokers are simply used to place your trades on the exchange.

Therefore, they don’t offer you any other advantages and will not offer you any advice regarding any trades that you make with them. Since these brokers offer minimal services, their brokerage fee is much lower as well. For instance, here, you can expect to pay around $20 per transaction.

This option works for individuals who have already amassed a considerable amount of knowledge and experience in the stock market and don’t require any assistance. These days, most of the non-advisory brokers can be found online.

If you want to ensure that you are dealing with a regulated broker, then you should check that they are a ‘Participant’ of either ASX or Chi-X. You will then be able to be certain that the broker is regulated by these exchanges and sometimes, the Australian Securities and Investments Commission.

When trying to find an Australian broker, it is important to understand the distinction between a direct broker and the businesses that may be offering to buy or sell shares on your behalf. Understand, there are some agencies that will provide you with advice on how to place trades and will also give you the opportunity to place trades through them. However, if they aren’t a participant in a licensed market, then they can’t make direct trades. Instead, they have to contact a Participant and place your trade with them.

Australian Stock Market – Choosing Your Sectors

Another point that you will need to consider before buying or selling shares on an exchange is which sectors and companies to be involved in. To start with, let’s first discuss the sectors that are available for you to invest in. Currently, the ASX consists of 10 sectors that have been collected from 24 Industry Groups, 68 Industry Sub Groups, and 147 Sub Industry Groups.

In Australia, the sectors are

  • Consumer Discretionary,
  • Energy,
  • Financials,
  • Health Care,
  • Industrials,
  • Information Technology,
  • Materials,
  • Consumer Staples,
  • Telecommunication,
  • and Utilities.

When deciding which sectors to become involved in, it is best to stick to those that you are more familiar with and thus, will have an easier time understanding.

The reason that sectors can be so vital to your trading plan is because they can make it easier for you to become a successful investor. In short, one of the more effective trading methods involves identifying the market trend, figuring out what sectors are performing best, and then determining which stocks to invest in.

Pick The Best Sectors

Identifying the top-performing sectors is a rather straightforward process and can be done with the help of technical analysis.

In fact, selecting the best performing sector is virtually identical to figuring out which stocks are doing well. Of course, there are also a number of financial agencies and sources that will provide you with this information as well.

Over the last few years, the top performing sectors in Australia have been Energy, IT, Materials, Health Care, Consumer Staples, Consumer Discretionary, Property, and Industrials in that order. The ones that are performing the worst are Financials, Utilities, and Telecommunication, respectively.

The key thing to keep in mind when selecting sectors is the importance of diversifying your portfolio.

Here, to reduce the risk involved in the buying and selling of shares, you spread your capital across two or more sectors.

This way, should one sector be negatively impacted, you can still rely on the investments that you have made elsewhere.

Choosing Australian Company Shares to Buy or Sell

brokerOnce you have determined the sectors that you want to focus on, it is time to narrow the search down to the companies that you want to buy shares and stock in. To make the right decision, there are several factors that you will have to think about. This includes the interest rates in Australia, exchange rates, current, and future government policies, and investor sentiment. You should also consider how foreign markets and economies can also affect various businesses.

The two types of companies you will find in the stock market are referred to as blue-chip companies and speculative companies. The blue-chip companies are those that have already been well-established in the marketplace. They consistently perform well and tend to have less risk associated with them. Now, it is relatively simple to identify these companies. You can check the S&P/ASX 50 and S&P/ASX100 to see what the top 50 and top 100 companies in the country are.

The problem, of course, is that these companies’ share prices aren’t attainable for many people, especially those just entering the stock market. Since there is so much faith in the performance of these companies, they are quite sought after. If this isn’t an option for you, then you may want to think about trying your luck with speculative companies.

Speculative Companies on The Australian Stock Exchange

speculative tradersThe speculative companies are those that haven’t been around for too long or who don’t have consistent financial performances to back them up. The main draw with these companies is that the share prices are more affordable and that there is always a chance of handsome returns. This, of course, is accompanied by a rather high level of risk as well.

Among the points to consider when choosing a company to buy shares from, you should think about the potential profit you acquire. This is because there are some companies that offer dividends while others simply provide you with the chance to buy their stock. There are others, still, that offer both opportunities.

You will notice that companies that feature higher up on the ASX list often provide investors with higher dividends. If you are someone who wants a regular income, buying shares and stock in these companies may pay off. Smaller companies are more likely to focus on the growth of the organisation and thus, will invest the profits in their own business. In such instances, you will not be paid dividends.

Education in the Australian Stock Market

Just because you have done your research doesn’t necessarily mean that you are ready to start buying or selling shares yet. There is still a lot of information and techniques that you need to be aware of. Especially if you decide to go with a non-advisory broker.

Fortunately, ASX has a large number of sources that you can check out if you are a beginner or simply eager to learn more. The main website offers everything from online courses to teaching you about brokers. In the online courses, you can learn how to buy and sell shares while also being educated about all aspects of an investment and trade.

There is still one more step to take, however, before joining the stock market. This is to first practice with a trading simulation. With these, you are able to buy and sell shares with virtual money, allowing you to get some much-needed experience. Once you have figured out the ins and outs of the process, you can then make the leap to real-world buying and selling.

How Shares are Taxed in Australia

You need to be informed of how the profits made from buying and selling your shares can be taxed by the Australian government. In the event that you buy and profitably sell your shares, then you will automatically incur the capital gains tax. This is because shares are considered to be an asset.

There is, nevertheless, a silver lining in this situation. If you sell your shares 12 months after you initially acquired them, then you can be afforded the concessional gains tax. This means that your payable capital gains tax is discounted by 50 percent. So, only half of the capital gains is actually added to your assessable income.

Since there is a chance that you will have experienced a capital loss rather than a gain, you will need to report the loss in your income tax return. In this situation, though, you can use the capital loss to reduce a capital gain that you have made. In certain instances, you may be able to carry the loss forward, if you haven’t produced any profits during that particular tax period.

If you are an Australian looking to get into the stock market, you will find all the relevant information in this article. Once you have gleaned the necessary details, it is simply a matter of putting your knowledge to the test. Of course, you should keep in mind that there is always a certain level of risk involved in investing and you should be careful how you buy stock.

Go Markets Australia

GO Markets was founded in 2016 and while it is first and foremost, a Forex trader, it is now also one of the most recognized and reputed binary options brokers in the world. It is based in the Australian financial sector.

Go Markets Australia

The first thing for a binary options trader to know about GO Markets is whether or not it has been licenced by the Australian Securities & Investments Commission or ASIC. After all, being a government regulated broker reassures clients that they are not being scammed. As it turns out, GO Markets has obtained a licence from the ASIC which requires rigid standards to be maintained before issuing one.

Pros

  • 24 hour customer service on weekdays
  • Pay-out ratios up to 80%
  • Low minimum trade of $5
  • Free educational tools
  • Cashback refunds up to $250 AUD

Cons

  • Available in very few languages

Go Markets Platform

Being a Forex broker, GO Markets Australia uses a trading platform based on META Trader 4 which is oriented around more traditional forms of trading. It has since been adapted to facilitate binary options trades as well.

For trading in binary options with GO Markets, you will be required to also download an MT4 plugin called FX Lite for MT4. It can be accessed by using the same login details from your MT4 account.

The binary options trading process is further improved by the inclusion of a widespread range of MT4 trading tools called MT4 Genesis.

gomarkets screenshot
MT4 Genesis Session Map

It also presents freshly designed options like a Session map, Correlation Trader, Sentiment Indicator, Terminal window and Mini Terminal.

The only types of accounts offered by GO Markets are a standard account and a Pro account. The Standard account is for new comers and the Pro is for more experienced traders. Both accounts are identical in standard features.

However, only Pro account holders are entitled to more advanced services like access to MT4 Genesis, VPS, and Autochartist. All traders are open to use the GO Markets Demo account which can be utilized for free along with $100,000 in virtual money.

GO markets enables its binary options traders to know precisely how much they stand to make out of their trades. This is made possible because GO Markets displays the exact pay-out ratio between the trade and return on the trade. This is calculated according to the amount that was initially invested.

GO Markets Minimum Deposit

The minimum requirements of GO Markets are quite simple regarding its range of accounts. New traders have to make an initial deposit of $200 to open a standard account while more experienced traders will be required make an initial deposit of $500 to open their Pro accounts. For new accounts, GO Markets offers a bonus worth 10%. It also offers a $250 refund but that is only for Forex traders.

There is no shortage of methods when it comes to depositing money with GO Markets Australia. The easiest one is to use either your VISA or MasterCard debit or credit cards since the deposit can be processed immediately. If you are a binary options trader in Australia, BPay would be the most commonly used method. If you are not from Australia, a simple wire transfer between banks would do. GO Markets also accepts some third part payment processing companies.

Out of all the licensed and regulated brokers in Australia, the pay-out ratios offered by GO Markets are impressive. On average it is around 75% but for certain assets, it goes as high as 80%.

GO Markets has an impressive customer service setup. There are available to traders from all around the world at all times. They can be contacted via phone or email if assistance is required. There is also a physical office location, which can be quite rare among binary options brokers. All of this only increases the authenticity of this broker and makes it a suitable options for new traders.

GO Markets Broker Alternatives

Plus500 Australia – This broker accepts Australian traders and they have a great reputation.

HighLow – If you are interested in binary options, then highlow is one of the best brokers for AU traders.

Is Go Markets Good or Bad?

All things considered, GO Markets remains a very reputable and reliable binary options trading broker in the Australian financial sector.

It features an advanced trading infrastructure that is immensely beneficial and accessible to clients. Go Markets can execute trades relatively quicker than most of other brokers. It is a good choice to go with as your binary options broker.

20k Investment Ideas Australia

invest 20kDo you have AU$20.000 or more to invest and you are from Australia? We’ve go you covered in this article. We will show you the best 20k investment ideas for new investors.

The entire premise of investing rests on the concept of trying to earn as much profit from the money that you initially invested – this is why most experts would suggest that $20,000 is a good amount to start with. Now, when you do have that amount in hand, your next question may be, how do I invest $20K in Australia?

Luckily Australian investors have a lot of investment choices to choose from.

Well, this article seeks to answer that question and to help you determine the best way to invest your money so you can receive a considerable return. Here is what you need to do:

1. Determine Your Financial Goals

One of the first steps is to take a close look at your current financial situation and then determine your overall goals. This information will make it easier for you to figure out just how much risk you can incur with your investments. Thus, by examining your financial status and understanding where you want to end up, you can identify which investment opportunity is best for you. Let’s take a closer look at this phenomenon.

For instance, are you someone who may need access to money urgently, even though you do have $20,000 to invest? In this scenario, you may not be able to withstand a great deal of risk. This is because if you were to experience a small loss, this would affect your monetary situation, particularly if you required the money for an emergency.

$20k investment ideas australia

On the other hand, if you are someone who does not need to touch your investment money, you can handle some risk. So, look for long-term investments that will allow you to garner considerably higher yields, even though there is some uncertainty involved.

Now, when considering financial goals, you also need to focus on how much money you would like to make within a certain period of time. For instance, if you are relatively young and have a long time until retirement, you can opt for a financial avenue that offers lower yields but also with less risk involved. In the event that you are rather close to your retirement age, it makes sense to invest in higher yield financial structures.

2. Which Type of Australian Investment Ideas Are Right for You?

Once you are a bit clearer on your current and future financial aspirations, it is time to move onto the investment ideas that are best for you. There are a few options available, depending on the type of risk you can accept as well as your preferred return on investment. Here is what they are:

A) The Moderate Risk, High Yield Option

Imagine that you don’t mind experiencing small losses as long as you are likely to get a good return on your investment. Here, you will find that equities such as shares are your best option. Australian shares, in particular, have a history of offering long-term, high yields on your investment. While there may be highs and lows during that period, it is still a great way to multiply your original 20K.

Of course, this does depend on you choosing the right stock, at the right time. So, if you don’t have too much experience in the stock market, it can be helpful to get some guidance in the form of a financial advisor. This is especially true if you are looking to invest most of your savings in shares and stock.

When investing in stocks:

  • you can expect a return per annum that ranges from 4 to 7 percent, and even higher.
  • To enjoy better results, it is important to focus on companies that will do well in the future.
  • You should keep in mind that previous fiscal performances of a company may not have a significant bearing on their future position.

If you don’t want to go through the trouble of choosing the stock yourself, you can invest in an Exchange Traded Fund or ETF. In this instance, your money is pooled together in a fund, along with other investors, and a manager will invest them in various assets. So, the ownership of the asset, here, is indirect. If you want to learn about trading, you can read some trading success stories here.

Although you can make quite a large profit with an ETF, there are also some downsides to consider such as underlying fluctuations and a lack of liquidity. This is why you need to be careful about which fund  you join. Now, to avoid any negative tax implications, you will find it best to opt for an Australian ETF that more or less deals with local investments.

B) The Low Risk, Moderate Yield Option

If you don’t want to incur too much risk but still want a decent return on your investment, then you may want to consider Australian government bonds. These can be traded on the Australian Securities Exchange (ASX) and can be either Exchange-traded Treasury Bonds or Exchange-traded Treasury Indexed Bonds.

With Exchange-traded Treasury Bonds, there is a fixed face value – this is the amount that you will get back once the bond has matured. These will have the same annual interest rate until maturity and this will be payable every six months. Now, the face value for Exchange-traded Treasury Indexed Bonds is adjusted for the movements in the Consumer Price Index (CPI). You will be paid a fixed interest rate that is based on the adjusted face value. The payments will be made on a quarterly basis.

It should be noted that although Exchange-Traded Treasury Bonds are impacted by inflation, Exchange-Traded Treasury Indexed Bonds are not. The main advantage with bonds is that there is little risk involved but you do get paid on a regular basis. However, these may not be the most liquid options as the market value of the bonds will depend on the time that you are attempting to sell the bonds.

C) The Low Risk, Low Yield Option

While investing, there are certain ways to mitigate the level of risk that you are exposed to. Nevertheless, the downside with this option is that there is also a limit on how you can expect as a return. Still, if you are someone who can’t deal with losses or want to have access to your money with little notice, here are the best avenues in Australia for you:

  • First, there are high-yield savings accounts but the name is somewhat deceptive. This is because, when compared to stocks, these accounts don’t actually produce very high yields. They do, however, allow you to earn more interest than traditional deposit savings accounts. The main benefit of high-yield savings accounts is that they keep your money safe so you won’t have to worry about losing it. You could also take a look at vanguard.
  • Then, there are money market accounts – although these may not be the most interesting investment option around, they can offer you some advantages. Much like with high-yield savings accounts, money market accounts provide you with greater financial stability. As such, you can be certain that your money will not disappear at any point. This is especially true if you have around 20K to invest, as these accounts typically require higher minimum deposits to get started with.

These accounts are not just suitable for investors looking for lower levels of risk, they are also right for anyone requiring a more liquid investment option. You will find that, within reason, you are able to withdraw your money from these accounts when needed.

3. What to Consider When Investing 20K – Investment Ideas

As you can imagine, it isn’t enough to just narrow down the type of investment you want to engage in. You will also have to figure out what sectors and industries to focus on, giving you more investment ideas. This is rather significant as it can determine whether or not you can actually turn your initial investment into a long-term profit. You will need to do some research to figure out what these top-performing sectors are.

Often, it is a matter of figuring out what sectors are performing well in your own country. For instance, at the moment, Energy, IT, Materials, and Health Care are the best Australian sectors of the year. Nevertheless, Financials, Utilities, and Telecommunication are at the bottom of the heap. Thus, investing in the better-performing sectors gives you some protection from risk.

Of course, you can’t be certain whether a sector that is currently doing well will continue to do so in the future. Here, you will need to determine how a sector has been performing over a period of time. By looking at these various intervals, you will be able to see whether the performance is increasing or decreasing. Furthermore, you should also be able to make an educated guess regarding the growth or depreciation of the sectors over the next few years.

4. How to Spread Your 20K Around

It has already been mentioned that there is a certain level of risk involved when it comes to investments, especially if you are hoping to make some real gains. This is why investors constantly need to be on the lookout for a way to minimise this level of risk. The most useful way to do this is to diversify your investments.

By doing this, you spread your money across sectors and asset classes. The main concept behind diversification, though, is to invest in assets that perform contrary to one another. This way, if one of your assets are performing poorly, you can be fairly certain that the other set of investments will be making you a profit. You are then able to balance out your losses.

This leads to the question of how you should diversify your portfolio – namely, how much of your 20K should you place with each of your investments? In this situation, there may be a rule of thumb that you can follow, at least to a certain extent. So, subtract your age by 100 and the answer will tell you just how much to invest in at each opportunity. If you need more, here are 50+ passive ideas and examples.

For instance, let’s imagine that you are 30 years old. This gives you:

100 – 30 = 70

This means that you should put around 70 percent of your 20K towards riskier, high yield investments such as stocks.

You could invest the rest of the money in:

  • moderate
  • or low yield, stable options like bonds and savings accounts.

As the numbers show, when you are younger, you can handle more risk as it has time to even out during your lifetime. So, your investments in the high yield investments can offer a better profit. On the other hand, if you can’t afford to lose too much since you are nearing retirement, you need more low-risk investments.

Age is not the only factor. It is also about how much risk you are open to and even how much of your $20,000 you can afford to lose at any given time. If you want a more cautious financial plan, even out your investments between the high and low-yield options.

5. Growing Your Portfolio

Just because you started off investing $20,000, doesn’t mean you should be content with this amount. A good way to continue contributing more and more to your future wealth is by reinvesting any dividends or profits that you make on your initial investments.

As long as you don’t need to utilise these profits straight away, it can be helpful to reinvest them either in the same company or sector or to try another option. After all, the more you are able to invest, the greater your wealth will be by the time you are ready to retire.

This is all you need to know regarding investing 20K in Australia. We’ve shown you the best AU $20k investment ideas we know. So, if you do have this amount saved up, you are now aware of all of the right moves that you need to make to multiply this amount. The only thing left for you to do is to actually start investing.

binary options terminology

Binary Options Brokers with 90% Payout

There are several things that traders need to consider when trying to find the right binary options brokers.

Among these is the payout rate that you can expect to receive from a particular trade. The payout rate is essentially the profit that you can make on the money that you place on a trade.

Of course, this is dependent on whether or not the trade is in the money or not. Also, with most brokers, the payout rate tends to change depending on the binary option type that you have chosen. However, below you will be able to find binary options brokers that have a payout rate of up to 90 percent on certain trades.

MarketsWorld

There are many reasons that traders decide to set up accounts with MarketsWorld.

One of these, however, is certainly that traders are offered 90 percent payout rates if they make in the money trades. In addition to this high payout rate, MarketsWorld also has one of the lowest minimum deposit requirements as well.

You can register for an account with this broker for just $10. Traders are able to choose from a wide variety of assets falling under categories ranging from stocks and forex to commodities. If you are looking to make a large return on your investment, this is the broker for you.

CTOption

CTOption is another binary options broker that offers payout rates that can get as high as 90 percent.

This broker offers an easy to use platform in addition to a 100 percent bonus, dependent on certain terms and conditions. There are also many educational opportunities and assets that traders can choose.

For the privilege of having access to all of this, all you need to do is register for an account and deposit just $250. This really is a great option for brokers who are looking for a user-friendly platform that also offers great returns on investments.

IQ Option

If you have been looking for binary options brokers, you have doubtlessly come across this particular name. Of course, this is due to the incredible reputation that this broker has created for itself.

IQ Option offers all of its traders fantastic assets as well as opportunities. This includes the chance to make back up to 90 percent of the original investment that they placed on a trade. This is not even taking into consideration that you can make up to 50 percent of your deposit back as a bonus.

This broker really is full of advantages.

Finpari

Finpari is often touted as one of the best binary options brokers around. Here is our honest finpari review.

This is because they have infused excellence into every aspect of their service towards their traders. This is including but not limited to the trading platform, the assets, and the contests that they hold each week.

Then there is the possibility of being able to make a 90 percent profit on an in the money trade. This just sweetens the trade. Therefore, if you are looking for great payout rates, Finpari should definitely be on your list of potential brokers.

 

These are some of the best brokers and the payouts that they offer. What you should remember, however, is that not every trade is given this payout rate. This often depends on the asset, the type of trade, and the broker in question.

What Is The Minimum Amount in the Australian Share Market

You don’t need to be a financial expert to get involved in the share market in Australia. The minimum amount you have to invest to buy your first shares on the Australian stock market is often a lot lower than most people think.

Getting Started with ASX Shares

Since buying and selling shares is considered a form of investment, you will need to understand just how it is you can make a profit from them.

minimum investment shares market

Capital return – this is where you buy the shares at one price point and then sell them when the value of the company and shares have increased. Then, there are dividends, which are profits paid out to the investors of the company. You can expect to get paid once or twice a year and the exact amount will depend on the number of shares you own.

Dividends.com has the perfect definition here:

A dividend is defined as a payment made by a corporation to its shareholders. Usually these payouts are made in cash (called “cash dividends”), but sometimes companies will also distribute stock dividends, whereby additional stock shares are distributed to shareholders. Stock dividends are also known as stock splits.

Minimum Amount Needed For The Australian Share Market

Especially if you are a new investor, you will probably want to start out with a lower amount of money.

  • What is the minimum investment in share market – This really depends on what type of trading you prefer. If you want to trade on the stock exchange then the minimum amount to buy shares is $500. But this varies from broker to broker. However you can start with only AU$50, if you like binary options investing. For binary options we recommand Highlow. Here is our honest HighLow review.
  • What is the minimum amount of shares I am able to purchase? – The minimum order size on the ASX is $500 for the first trade. After that you can make lower purchases. This is considered one of the best small investments in Australia. Of course you can buy as many shares as you want as long as the first trade is at least $500 (asx minimum trade).

As you can see the minimum you can invest in stocks is $500, but some brokers like Interactive Brokers require $10.000 minimum to open an account. And this amount goes down to $3000 in case of students.

Now lets see how you can buy and sell shares, even if you are a beginner.

How to invest in shares with little money?

1. The Different Ways You Can Buy Shares

There are four main ways you can buy shares, especially if you are a rookie Australian investor.

  • On market share buying is perhaps the most common avenue as it involves purchasing shares on an exchange. Here, you decide what shares you want to buy and place the order with your broker. Your broker is then obligated to find you the best price available.
  • There are some companies that decide to offer new shares in the market as they are hoping to raise capital. This is known as an initial public offering (IPO) or a float. First of all, you don’t necessarily need a broker to buy these shares. Oftentimes, sending in documentation along with a cheque is sufficient. Furthermore, your investment in a company isn’t guaranteed. For one thing, you may not actually receive the number of shares that you asked for. Or, you may find that the shares have already been sold out. In this case, it may be some time before you get your money back.
  • When investing in a managed fund, however, things are a little different. This is because you don’t actually buy shares from a particular company and therefore, don’t have claims of ownership. With a managed fund, you buy units in a fund that is handled by financial experts. These individuals will pool your money with other investors and then use this money to buy bigger chunks of asset classes or asset funds.
  • Finally, there is the employee share scheme. This is when you are an employee of a particular company and they present you with an opportunity to buy shares in the same organisation. In certain instances, you may be provided with a discounted price.

2. Open a Brokerage Account in Australia

Australian Share MarketMost people prefer to buy shares on market, which means that you will need to open up a brokerage account in order to place trades. So, one of your first tasks will be to find a broker that is suitable for you. Now, in Australia, you have two choices – to opt for an online broker or to go with a full-service broker.

How much minimum money is needed to buy shares? The minimum amount required for share trading can vary from $500 to even $100.000. Of course we will focus on online brokers that require a minimum amount for the Australian stock market.

Online brokers tend to be rather popular with individuals who are only just starting out with the share market. They are also good for people who don’t have a great deal of money to invest. Understand, online brokers typically charge around $15 to $20 a trade. However, they are only involved in the execution aspect of the trade and will not offer recommendations, advice, or any other type of assistance.

Full-service brokers, nonetheless, take a more hands-on approach with their clients. First, they will help you with any paperwork or documentation you will need to complete when getting started. Then, they will provide you with various recommendations about the type of shares that you would invest in. Finally, they will place the trade on your behalf. Due to this wide range of services, however, you can expect such brokers to charge at least $80 per trade.

3. How To Compare Brokers That Require Minimum Investment

Regardless of whether you want an online or full-time stockbroker, there are a few things that you will need to during the selection process. These are as follows:

  • Compare the brokerage fees to ensure that you are getting the best deal possible
  • Understand whether or not there will be ongoing fees attached to the account
  • Know what you can trade and if you can trade shares locally as well as internationally
  • Be aware of the minimum and maximum trade limits imposed on you
  • Check if there are additional educational and research services available and if they cost extra
  • Determine how easy the platform is to use
  • Find out if there are flexible and advanced trading options available

4. Selecting the Shares You Want to Buy

The next step in the process is to narrow down the companies from which you would like to buy shares from. Perhaps the most important piece of advice that you can receive is to buy shares from an industry or sector that you actually understand. After all, when determining when to buy and sell the shares, you will have to go through lots of material associated with that particular sector. This becomes a lot easier for you to do if you have some vested interested in the subject matter.

Typically, though, you will find that there are three main ways to select which shares to buy. They are fundamental analysis, technical analysis, and stockbroker research. Of course, there are some individuals who solely rely on stock tips but this isn’t a reliable method of choosing.

Fundamental analysis requires you to go through the financial statements of a company. This gives you an idea of how the company has been faring in various situations and an indication of how it may perform in the future as well. With technical analysis, you will use various information and analysis tools to understand how the share prices of the company have been performing in the past. Here, you will work under the assumption that these prices will be mimicked in similar situations, in the future.

5. Combine both fundamental and technical analysis

For the best results, combine both fundamental and technical analysis. Alone, you may not be able to get a complete picture of how a particular company is performing. However, when you put both types of information together, you will be able to make a more informed decision. We hope you will share your trading success story with us soon.

In case you don’t want to do all of the work yourself, you can rely on the third option – stockbroker research. Here, it is about creating an account with a stockbroker that offers you access to their research and analysis. Before choosing such individuals, though, you should know what type of analysis the stockbroker is dealing with.

6. Managing Your Portfolio

In between buying and selling your shares, you will need to manage your share investment portfolio. One of the best things you can do to limit the level of risk you are exposed to is to diversify your portfolio. This means investing in companies and sectors that often work inversely proportional to one another. By doing this, you will be able to ensure that at least a portion of your investments will maintain their value at any given time.

Another thing you should do is to take a long-term approach to the shares that you hold. The shares need to appreciate in value so playing the waiting game can be useful to you in the long run. At the same time, you should avoid constantly monitoring your shares as the prices do rise and fall minimally rather frequently.

It is also vital that you comprehend the brokerage fees involved every time you place a trade. This is especially significant if you want to make smaller trades on a regular basis. The cost of these transactions alone can make some of these trades a poor choice. So, always be aware of the cost versus profit of any trade.

7. How to Sell Shares

At some point or another, you will decide that it is time to sell the shares that you hold. Now, if you hold the shares directly – for instance, through a broker, IPO, or employee scheme, then the process is fairly simple. You will need to either contact your broker or place the shares online. It is then a matter of waiting for someone to purchase the shares. As with buying shares, this type of trade also incurs a brokerage fee.

Once you have sold your shares, the title of ownership changes from you to that of the purchaser. This ownership transfer and the settlement of the sale will be completed after two business working days in Australia. This is when the money from the sale will be transferred to your account.

If you don’t own the shares directly but rather, in a managed fund, you will end up selling the units you own. Of course, in a managed fund, there are certain regulations that you are held to. As such, you may incur a withdrawal fee if you sell the unit before a specific time period.

Of course, when selling your shares, you want to take advantage of the rate at which the share value may be increasing or decreasing. Nevertheless, you may also want to think about the tax implications of any given trade. Now, any profits you make from share investment are taxed via the Capital Gains Tax regulation. However, if you sell your shares a year or more after you initially purchased them, you can receive a tax break. This is because you will only have to pay CGT on 50 percent of your profits.

8. Understanding the Types of Orders

As an Australian investor, when you have decided to either buy or sell shares, you will need to place an order. There are several kinds of orders and they each have their uses contingent upon a particular financial situation. The orders typically relied upon are: market orders, limit orders, stop-loss orders, and conditional orders.

Market orders are placed to get the best available price for shares at that particular time in the market. This means that these orders take place quite quickly. The downside, of course, is that the share price can change from the time you have placed the order to when it is actually executed. So, during this time the price may have increased or decreased.

A limit order is set to ensure that you end up with a share price that you find suitable. This means that if you are buying shares, the order will only be executed if they fall to a certain price or go even lower in value. On the other hand, a limit order when selling shares means that the trade will only take place when the price reaches a certain value or goes higher. If neither of these conditions are met, the trade becomes unfulfilled.

A stop-loss order is used when you are selling your shares. This is employed to ensure that your shares are automatically sold if the share prices drop to a certain amount. By doing this, there is a chance to limit how much you could lose, if those share prices continue to decrease.

Should I invest only the minimum on the Australian Stock Exchange?

This is your call. Only you know how much money you have, and how much you are willing to risk. Don’t forget that all types of investments involve some degree of risk.

As you see the minimum investment in shares is around $500 and the minimum share purchase on the asx is not important.

Now you know how to get started, if you are a beginner investor who is eager to try their hand at the share market. The information presented here will be more than enough to teach you how to buy and sell your shares so that you can make a profit.

If this is an area you are interested in, you should definitely take the necessary steps to start trading stock. This is because it is one of the best ways to make a considerable profit, over the course of your lifetime. Below, you will find all of the information you need to get started with buying and selling shares.

 

Ayrex Australia

ayrex-logoWhat is Ayrex? Does Ayrex accept Australian traders?

Ayrex is a binary options trading broker headquartered in Charlestown, Nevis in the Caribbean Sea.

Started only in 2014, it has since come to be known as a reputable and trustworthy broker thanks to its highly competent and trustworthy service to its clientele.

Sure enough, transparency in the business and high responsiveness to client traders is one of the top priorities in the company’s policy.

What We Liked

  • Highly focused on customer service and satisfaction
  • Simple and elegant trading platform
  • High bonuses offered on substantial initial deposits
  • Decently high pay-out rates
  • Demo account option available

What We Didn’t Like

  • Unregulated operations
  • Limited variation in available Options

ayrex-australiaAyrex was founded in 2014 and is owned by Advanced Binary Technologies Ltd. Despite the fact that many traders seem to trust it and recommend it within their own circles, this broker firm still remains ironically unregulated by any government financial agency.

It is a plain fact that as prospecting binary options trader, you should avoid an unlicensed and unregulated broker at all costs as you run the risk of being scammed and having your money extorted.

This time though, it seems we have arrived at an exception. The disturbing bottom line is that even a fully regulated binary options trading broker is capable of fibbing and scamming you; just that that is far more unlikely to happen than with an unregulated broker.

However, being a fairly recent addition to the industry, rest assured it is only a matter of time before Ayrex joins the community of licensed and regulated brokers. It is already praised as such.

Trading platform

The trading platform offered by Aryex is incredibly fast. It is able to execute almost all of its trades in under 30 milliseconds. This will be of great assistance to traders particularly executing trades that last for under a minute. As a trader you also have the ability to close a trade before its assigned time of expiry.

Of course, the online platform is fully accessible on your Android or IOS device. A wide range of options are available as are numerous assets to trade in. The main three types of binary options on offer are High/Low Options, Short Term Options and One Touch Options.

Ayrex Australian Accounts

Traders can only maintain one active account. A demo account is also available even during weekends when mainstream markets are inactive. Most notably, there is also an option for opening an Islamic account, one that is in accordance with Sharia laws and offers trading that is void of interest, commissions and other fees.

Even a trading platform specific to this account has been developed for Muslim traders. It all adds up to some serious customer service from an unregulated binary options broker.

The minimal initial deposit required for opening an account with Ayrex is merely $5. Any deposit made upwards of $100 and under $499 will be aided with a bonus of 10%. For deposits between $500 and $999, that bonus can go up to 20% and for deposits made over$1000, it is 30%.

Related Articles:

Pay-out rates are on the high side with Ayrex, going up to 89%. Typically though, the pay-out rate fluctuates more modestly between 80% and 83%. In terms of assets, a moderate number relative to other binary options brokers is available with Ayrex. It offers over 50 assets consisting of stocks, indices, forex and commodities.

Customer service

Customer support from Ayrex is available 24 hours a day on all 5 weekdays. Customers can get in touch via telephone, email or a live online chat on the official website.

Is Ayrex a good choice for Australian traders?

While being unregulated is its greatest weakness, Ayrex still maintains a high level of trust and reputability among its clients thanks to its efficient customer service and high quality of standardized features.

 

 

Core Liquidity Markets Australia

Core Liquidity MarketsCore Liquidity Markets was founded in 2013. Core Liquidity Markets accepts Australian traders. Registered as a Forex and binary trading options broker, Core Liquidity Markets is also known as CLM Forex.

It has since managed to extend its business operations across Australia and into international finance.

It has garnered a reputation for being a reliable and well regulated binary options broker. Core Liquidity Markets has been licensed by the Australian Securities & Investments Commission. The license is further evidence to prospective clients, that it is a legitimate binary options broker and hence there is no risk of being scammed. The ASIC is a very strict regulator of all its licensed brokers operating in Australia.


Pros

  • Availability of the Meta Trader 4 Platform
  • Pay out rate up to 85%
  • Supports multiple deposit and withdrawal methods
  • Regulated by the ASIC
  • Withdrawals processed within one day domestically

Cons

  • Traders cannot trade in indices or stocks

One of the fundamental things to get right as a broker in binary options trading is an easy to use online platform for subscribed binary options traders. Fortunately, Core Liquidity Markets offers a wide range of such platforms to suit as many customers as possible.

Some of the online trading platforms on offer are SignalTrader, FXLite Web Trader, MYFX, MT4 and MT4 Mobile. The platforms also work in tandem with Meta Trader 4 so it is possible for traders to access and analyze prices in real time before placing trades on them.

Traders at Core Liquidity Markets are offered fairly old-fashioned contracts on binary options. Clients can either place a Call option or a Put option depending on where they think the price is going.

Core Liquidity Markets does not offer stocks and indices to be traded.

The expiry time periods for binary options consist of

  • 60 seconds,
  • 5 minutes,
  • 10 minutes,
  • 15 minutes,
  • 30 minutes, and
  • 60 minutes.

cmlforexCore Liquidity Markets does offer a demo account for free but only for 30 days.

The maximum pay out offered by Core Liquidity Markets on a successful trade option is 85%, one of the highest anywhere. In order to open a live account for the first time, a deposit of at least $250 will need to be made. The equivalence in Australian dollars, Pound Sterling, or Euro can be deposited as well.

Which are the best alternatives to Core Liquidity Markets?

The best alternative is IG Markets Australia. This broker also accepts Australian traders, and they have a steller reputation in the trading industry.


Payment methods such as Credit cards, bank wire transfers, Neteller, China UnionPay and Skrill are all accepted by Core Liquidity Markets. The same applies for withdrawals.

Traders can withdraw a minimum of 50 in the currencies of AUD, USD, GBP and EUR. The withdrawals can be made with a credit card, debit card, Neteller, China UnionPay or Skrill. For bank transfers, the minimum amount that can be taken out is $100 or the equivalent in AUD, GBP, or EUR.

It usually takes between 3 and 5 business day to process bank wire transfers internationally.

For transfers taking place within Australia, it normally takes between 1 to 2 days. Other methods are usually processed within a day.

Another advantage offered by this broker is fund protection. This is because of the clients’ funds are placed in accounts in the Commonwealth Bank of Australia (CBA).

These are segregated so that they cannot be used for any business related activities on behalf of Core Liquidity Markets.

Core Liquidity Markets Minimum Deposit

While traders are expected to deposit at least $50 dollars into their account, they can trade with a lot less.

Core Liquidity Markets requires their traders to trade with a minimum of 1 AUD, EUR, GBP, or USD.

cmlforex-australiaYou can contact Core Liquidity Markets for customer Support either by email, phone or via a live online chat on their official website. These options are available to all traders associated with Core Liquidity Markets, even international ones.

The question of which is the best binary options broker in the business is almost impossible to decide since each trader has a unique, objective standard.

How Good is CML Forex For Australians?

Overall, Core Liquidity Markets has been deemed a very good broker to partner with for trading in binary options.

It is strictly regulated by the ASIC so clients feel secure enough to invest in large sums without any fear of exploitation. On top of that, traders have the option of choosing from a variety of different trading platforms to trade on.

Customer service is also highly reputed among all clients, those that have only just begun trading as well as the more seasoned traders as well.

IG Markets Australia

ig markets australiaThe broker known as IG Markets is actually owned by the IG group and they accept Australian traders. This group which was formed in 1974 and originally traded gold.

Now though, it is a global enterprise serving close to 140,000 traders from all over the world. It has set up 17 branches internationally and racked up billions of dollars’ worth of profit in the market. Especially in Australia this broker is very trusted.

IG Markets Australia:


What We Liked

  • Low minimum deposit
  • Customer support available 24/7
  • Regulated by the ASIC
  • Demo account offered

What We Didn’t Like

  • Slim amount of options with deposits and withdrawals

Is IG Markets Available To Australian Traders?

Subsidiaries of IG Markets have been set up in Australia and New Zealand. The Branch in Australia is strictly regulated by the Australian Securities & Investments Commission.

This is an important feature for any trading broker operating in Australia. It reassures prospective traders that their selection of a broker is licensed and regulated by the government. This eliminates the possibility of the broker being a scam.

Traders in Australia can access the ground-breaking trading platform offered by IG Markets online.

It is a cloud based trading platform that does not require traders to download additional software to gain entrance to their accounts.

Instead, they can enter their accounts from just about any modern browser. All subscribed traders have access to over 10,000 trading instruments on the platform. There is also the availability of mobile apps that can be used to place trades. The platform streams and displays prices in real time.

This assists traders in conducting an accurate analysis to better their chances of being in the money.

ig-markets-australia

IG Markets accepts a minimal deposit of $200 for a new account and for the first couple of years, it does not penalise a fee for inactivity. There isn’t a specific pay-out rate guaranteed at IG Markets. A rough estimation can be made by considering the time period allocated to the trade and the assets involved. However, the IG Markets trading platform will give you a potential pay-out once you have selected a trade and a time period for it.

IG Markets uses as simple and straightforward a system as possible with their trading accounts

  • Apart from the free demo account, all traders can use just one live account which is entitled to every kind of trading instrument the broker has to offer.
  • There are two types of  trading available: traditional and sprint markets which is a more recent opportunity.

It offers extremely fast trades with a time limit ranging from a minute to an hour. The main difference is that in sprint markets, users cannot close positions which have been opened. With traditional binaries, the positions can be closed before the appointed time of expiry.

ig-mobile

Moreover, the types of trading are more with compatible with traditional binaries than they are with sprint markets. There are trading types like Hi-Lo, Up/Down, Ladder, Tunnel and One touch which are not available with sprint markets.

  • When it comes to making deposits, you will be charged 1.5% of the funds transferred from your VISA credit card and 0.5% on your VISA debit card.
  • With MasterCard however, no fee is charged and for Australia based traders, BPay is also a free option.
  • A bank wire transfer to IG Markets’ Westpac Bank account is the preferred method for international clients.

Unfortunately, the options remain fairly limited for both foreign and domestic traders, with the withdrawals as well. Australia based traders can only use BPay or VISA or MasterCard credit cards.

Happily however, there is good news to learn about with the customer services of IG Markets. There are several ways for clients to reach customer support.:

  1. There is a help desk that can be accessed via email.
  2. Representatives of the broker can be reached by telephone.
  3. You can also engage in a live chat on the IG Markets official website as well get in contact on Twitter.

A good alternative to IG Markets is Highlow – This broker also accepts Australian traders and they still offer binary options trading.

Is IG Markets A Good Choice For Australians?

IG markets is a well reputed broker in Australia, New Zealand and much of South East Asia. Being strictly regulated and licensed by the ASIC, traders should have little to worry about entrusting their funds to the broker.

The only real downside with IG Markets is the uncertainty of the payout rate and the minimal number of deposit and withdrawal methods.

 

 

strategy

Winning Strategy for Binary Options Trading

You will not last very long on any online trading platform without playing by a careful and effective strategy.

While it may not promise you a 100% hit rate, it will still help you land in the money more often than not on a regular basis. With binary options, a trader’s strategy often revolves around variables of the market such as expiry times, moving averages, breakouts, systems etc.

What really matters here is coming up with a winning strategy. Some strategies are more suited for new traders while others such as Forex and MT4 strategies can be executed by more experienced and informed traders.

Why Come Up With A Trading Strategy?

A trading strategy is more or less the code by which a traders responds to the behaviour of the market. It helps in directing them to trades that carry a high profit potential as well as the techniques of how to secure them. It also sets traders on a sort of rhythm where they can rely on certain responses to work in certain circumstances.

Coming Up With an Effective Strategy

In very simple terms, a good strategy for binary options is one that assists a trader to accumulate more profit over loss with a pay out that compensates well over any loss.

On average, a good broker offers a pay-out rate that is just under 100% of the investment so just being in the money more than being out the money may not guarantee a long term profit. Your trading can strategy can either be simple or complex… as long as it works.

The Advantages of Having a Good Trading Strategy

With binary options trading, time is a crucial factor and a great way to use it is by streamlining a lot of the work such as decision making and thought processing behind the placing of options. A good strategy should be able to accomplish this and make the work of a binary options trader that much simpler and efficient.

A strategy requires discipline and intelligent use of funds to be executed properly. While it is not entirely impossible for a trader to reap a profit without the help of a good strategy, the task would prove to be a lot more difficult.

New strategies are developed all the time. It is not always the best idea to simply borrow techniques of other traders under the shaky assumption that you will then gain the same sort of profit.

Sometimes, it pays off to do your homework and come up with a trading strategy of your own. Not only will this increase your knowledge and experience with the trade but you will have also built a strategy that caters to your specific financial interests as a trader.

To carry out a risk free operation of different trading strategies, make use of a demo trading account if it is available from your broker. You will have one with a certain amount of capital already installed so you start trading freely and hone your skills as best you can before using real money.

Basic Features of an Effective Trading Strategy

For the main strategy to work, three minor strategies have come together first. They are:

  1. A strategy for trading
  2. One for managing funds
  3. A strategy for analysing and improvements

All three are equally critical aspects of the main strategy. One cannot do without the other.

Conclusion

Coming up with an effective strategy is key to achieving continued success as a trader in binary options. It streamlines the workload and decision making involved. It can be relied upon to turn in profits at a very healthy rate.