Investment Ideas

Becoming an successful Investor

Some 80 to 90 years ago when our forth fathers were starting their lives and careers, the only option to
invest they have at that time was to consult a local broker in their town. Every time they have to make a
trade of stocks, mutual funds or shares they would have to pay an amount to the broker as their fee or
sometimes they would have to pay a yearly fee for their trades. As this was the only option it worked
perfectly and our forth fathers retired not depending upon their insurance policies. So if we want to
invest now in our age we can use the same method too but the up gradation of technology has made
our life easier and gave us some new ways to invest even without a broker. These methods are easy to
use and we can save a lot of money by using them and the chance of getting profit is very much higher
in these scenario.
Reasons you want a broker
Even though the internet has revolutionized all the industries but this industry of brokerage is not going
anywhere because of the amount of interest people have in the field of investing. Every town contains a
small brokerage or a full time brokerage service provider for the people of town. Their aim is to provide
the service for the people who want to invest money for the betterment of their future and some for
investment. If you do not know a bit about how, where and when to invest and you are afraid to make a
decision or you want that your decisions should be taken by the professionals and if you want to get one
on one conservations with your service provider then you need a brokerage of your town because if you
exhibit one of the above habit then you need a brokerage. You can use a broker and there is nothing
wrong in it if you are comfortable with it but in this case you are missing to boost up your investing
potential because you are not stepping towards DIY investor.
Brokers might be expensive
If you ever have invested money you should have aware of the fact that there are two type of
brokerages services the one is the commission based broker that charge a fixed percentage every time
you invest in a stock for example if you are investing $1000 then your broker will charge you like 5% that
is $50 for that investment and you will be left with $950 for investing. The other type of service is the
fee based broker that charges a yearly fee that is a fixed percentage of your total worth. The
commission based broker might invest your money in a way that gives him more profit but it is not good
for the market so the federal reforms has enforced the brokers to become fee based brokers and now
they charge only 1.36% of your yearly investments that means if you invest $1000 a year than in this
case you will be only charged $13.6 until your others assets are included. Hence that provides a saving
opportunity to the investors.
Online brokers are cheap
There are many online applications and websites that now help you to invest money without a broker
and sometimes without the trading fee. If you are user of Schwab, Vanguard, Fidelity etc you can use
their broker option for a very small fee and you can also invest by yourself without using any broker and

if you are aware of what you have to buy like the mutual funds or ETFs you can directly buy them and
the only fee you will have to pay is the trading fee and you can save the trading fee also by buying the in
house funds that you can find the in the list that is on their app and these mutual funds includes mutual
funds and ETFs.
Investing by yourself is so much satisfying you can save a lot of money and can gain a lot of experience
by doing it yourself. As you are investing in the mutual funds online the broker expenses are only 0.03%
to 0.15% that are extremely low as compared to the other. So if you are investing $1000 then you would
only have to pay a maximum of $15 from your account. By following this method of investing you can
save a very big amount every year and you can invest maximum of your amount by following these
methods. When we talk about this method on life time scale you will be amazed to know the amount of
profit that you will earn.
Robo Advisory
You will be amazed to check the stats because you will get to know that most of the successful funds are
run by the computers. As the traditional brokers are not going anywhere but they are becoming less
popular and common. Many of the online investing companies has introduced their own Robo Advisor
app which have some mutual funds and ETFs to deal with. The companies will charge you a small
amount and for some this function is free. Your portfolio will be managed by a computer and it will
invest in the mutual trade funds and the ETFs according to you priorities from the portfolio. So if you are
not yet ready to for do it yourself investing and you are not willing to pay to the brokers that charge you
a very big amount then you can go for robo advisory because as it will charge a very less amount and it
we be safe as your portfolio will be managed by a computer. The robo advisory is a mandatory phase as
the computer does not become too aggressive towards investing and your amount is invested safe
according to the priorities you set. They buy low cost mutual funds and ETFs. Many websites like
Betterment, Wealthfront and Charles Schwab has introduced their own robo advisor so people can save
more.

The most famous and successful investor Warren buffet also says that you do not need a broker all the
time to invest. As the technology has automated the way of investing and with the introduction of robo
advisory it is very easy to invest and earn. So these were some tips for becoming a successful investor
and doing the investing process by yourself. This will help you a lot to step up in to the world of do it
yourself investing.
Drop a comment below in the comment section and also share your experience of investing money and
saving the heavy fees you pay for the investments all the time.
Have a good Day!

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