Keeping money idle is not a wise choice to reach financial freedom as long as inflation remains. So what to do with that money? Save it in a bank to earn interest? Also not a perfect option. Especially in such a pandemic period when most central banks keep the interest rate as low as possible to boost the economy. One of the good ways to make money at this time is via trading stocks. Buying shares of companies and making profits from their increase in value and dividends.
The stock market is one of the most traded financial markets besides forex or commodities. It also has a quite long history as the very first stock exchange has been launched in 1611 in Amsterdam. In the stock market, the trading assets are shares issued by companies. Each share represents partial ownership of that company. After buying shares of a company, you will become a company’s shareholder. Normally, a company issues its shares to gather more capital from the public; in return, it grants the buyer partial ownership of it.
Investing in shares, investors capitalize on the positive outcome of the share’s value. The share’s value basically ties to the business performance of its company; besides, it is also affected by demand and supply. Whenever the value goes up, the investor earns more money and vice versa. If the company operates well and generates profits, it can also distribute a proportion of its income to shareholders based on the ownership level or how many shares that shareholders are keeping.
Similar to other financial tools, the stock neither stays the same nor moves in just one direction but fluctuates continuously. An increase in value or an upward trend can go through many up and down phases alternately. Therefore, choosing a good company, which has a great prospect and an effective business strategy, is crucial when trading stock.
The advantage of trading CFDs in the stock market
Stock trading is no doubt a trendy investment, but it doesn’t make buying shares accessible. Several hinders can be listed as follows:
- Fund. A Tesla share costs around $800. Imagining you need nearly a grand just to buy a single share. It is not to mention other taxes and relevant fees. If you have a finite capital, it is quite difficult to approach.
- Geographic issue. The New York Stock Exchange (NYSE) is the largest stock exchange in the world where all traders want to participate, but how to do that if you are living in an Asian country now?
Good news, both of these two problems can be solved when you trade CFDs (contract for differences). In this trading form, you still have the chance to engage in the stock market but not via buying shares. Instead, you speculate the change in the value of share during a certain period. Besides, you don’t need to register at the exchanges but just simply create an account at a global broker like NSBroker to access all of the companies’ shares. This approach can benefit you in a lot of good ways:
- Leverage allowed. NSBroker offers you leverage to trade the stock market. It will magnify your buying power and give you chances to make more profits.
- Make money from both market directions. A cons of conventional stock trading is that you have to choose a good company to buy its shares and wait for its price to go up. Meanwhile, trading CFDs allows you to short sell at the same time, thus, you can make money even in the downtrend.
- Dividends available. Despite not physically owning the shares, NSBroker still helps you earn dividends, making it an effortless way to gain money.
NSBroker – a perfect place to trade stock CFDs
To trade CFDs, you invest your money via brokers instead of directly via exchanges. For that reason, a trustful broker is the first and foremost thing to ensure your success as a trader. Having a decade working in this industry, NSBroker is among the most experienced brokers. Its position is earned by both legitimacy and outstanding service.
For the former, NSBroker is one of a few brokers having licenses in different countries. With its base in Malta, NSBroker is regulated by MFSA via license number IS/56519. On the European continent, NSBroker also shows its presence in major countries:
| Country | Regulator | License number |
| Denmark | FSA | 9221 |
| France | ACP | 74397 |
| Germany | BaFin | 131055 |
| Italy | Consob | 3597 |
| Spain | CNMV | 3354 |
Moreover, NSBroker also complies with the European Markets in Financial Instruments Directive (MiFID) to create a harmonized and ordered trading environment in the European Economic Area (EEA).
In compliance with regulations of administrative bodies, NSBroker imposes several monetary policies to ensure transparency and to protect its clients:
- Segregation of funds. NSBroker keeps its clients’ funds in different accounts from its operational fund. Therefore, clients’ money can only be used for trading purposes and stay intact even if the broker has financial issues.
- Investor compensation scheme. This fund can reimburse clients up to 20 000 euros if the broker goes bankrupt.
- Negative balance protection: Clients can never get into debt by trading on margin. When the balance hits zero, all trades will be canceled.
Promising stocks to trade
The COVID-19 pandemic has accelerated digitalization in all sectors. As a result, big tech companies are objects that benefit the most when social distancing forces people to work from home and make use of the internet as well as relevant products like data, software, etc. Positive business results make technology become the most dynamic sector in the stock market.
At NSBroker, clients can trade various technology companies including giant such as Facebook, Amazon, Apple, IBM, or Google. All of them own big capitalization market value and have been operated stably for a long period. Besides, they also introduce new innovations and products regularly and have a loyal customer force. Therefore, even having a high price at the moment, these shares still have good potential in the future. Let’s take a look at some popular products of these big tech companies:
- Facebook: Facebook, Facebook Shop, Instagram, Oculus Products.
- Apple: Hardware (iPhone, iPad, Mac, etc.), software (iMessage, Apple Music, etc.).
- Amazon: Consumer goods, media, streaming service (Prime).
- IBM: software, hardware, services, global financing.
- Google: Google, maps, translation, YouTube, etc.
As can be seen, all of the five companies cover a wide range of products, far beyond their original ones. Therefore, they can make big impacts not just on the stock market but also the human civilization in general. At NSBroker, with the leverage of up to 1:20, you can easily purchase their shares and hold or speculate on short terms easily.
NSBroker demo account
Everything sounds exciting but it’s just the tip of an iceberg. Trading, investing, speculating is never an easy task, and trading CFDs always contains risk. Entering the real market before having adequate knowledge, experience, and a proven strategy equal to suicide. But without starting to trade, how can a novice trader get that foundation? The answer is paper trading or trading on a demo account.
The demo account replicates the real market with the same assets, real prices in real-time but without the financial risk. To be specific, each NSBroker can register for a demo account for free, in that account, they are provided with a virtual fund to start trading, whatever the way they want.
A demo account is a good place to:
- Learn to navigate the trading platform. At NSBroker, you trade all markets (forex, shares, indices, commodities, energies, crypto) via MetaTrader 5 – the most advanced trading terminal at present.
- Practice what you have learned from books, videos, webinars, or any trading courses.
- Develop your signature strategy and test it over and over again until it proves consistently effective.
- Get familiar with the trading condition of your broker, including spreads, commission, swap, and leverage.
The bottom line
Trading CFDs in the stock market is an exciting investment where you can be like a real wise shareholder who makes profits from the success of companies. NSBroker, a multi-regulated global broker with a wide range of companies’ shares, outstanding trading conditions, extensive trading courses, and a free demo account always welcomes traders to join and participate in one of the biggest financial markets.
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