Guide To Investing Online
Introduction An increasing number of professionals of all nationalities have been moving and working abroad in the last decade. Whether you are a young executive or a high net worth individual with a diversified portfolio of global assets, you will have specific financial requirements and objectives. Offshore financial products and services can help you achieve financial security and provide you with the quality of life you require as an expatriate or international investor. Investing in international accounts is no longer the premise of the rich and famous; all expatriates living abroad may now enjoy flexibility, among other benefits, by investing their money overseas. The offshore financial industry has become more popular and financial institutions from around the world have entered the offshore market as a result of the high demand. Over the years, deVere has developed strong partnerships with some of the world’s leading investment houses and insurance companies, all of which offer some of the most competitive products in the marketplace and a high level of protection for the investor. Additionally deVere recently launched an online trading platform, which offers access to a wide range of products at the click of a button. In this guide, we aim to provide you with essential information on how to invest online anywhere in the world. Investing online can be a good way forward to suit your busy lifestyle.
Using technology to invest The internet has opened up the world of investment to a new dimension. Electronic trading has become the norm, with very few ‘open outcry’ stock exchanges left in the world: the commodities exchange in Chicago is one such example. The advantages of electronic trading to investment banks and stockbrokers are pretty obvious: speed, efficiency of pricing and liquidity. A natural extension to this trend has been the spread of trading platforms for individual investor use. Just like institutions, retail investors now have real-time access to trading individual stocks, funds and derivatives. As growing numbers of investors do their own share/buying, this has heaped pressure on traditional stockbrokers, who have historically relied upon old-world media to buy and sell shares for their clients.
Why invest online? In today’s environment, logging on to the internet has become so natural to the majority of us that it is one of the first things most of us do in the morning. The Web has become an invaluable tool for all people with an international lifestyle and it is hard to imagine a day without it. Expatriates worldwide are best placed to see the advantages of being able to have online access 24/7. Whether it is to keep up to speed with the latest news, keep track of the latest
Guide To Investing Online
sports results, shop online or e-mail your loved ones, the Web boasts numerous advantages. As a result usage of the internet has increased drastically in the last few years. WORLD INTERNET USAGE AND POPULATION STATISTICS World Regions
Population ( 2009 Est.)
Internet Users Dec. 31, 2000
Internet Users Penetration Latest Data (% Population)
Growth 2000-2009
Users % of Table
Africa
991,002,342
4,514,400
67,371,700
6.8 %
1,392.4 %
3.9 %
Asia
3,808,070,503 114,304,000
738,257,230
19.4 %
545.9 %
42.6 %
Europe
803,850,858
105,096,093
418,029,796
52.0 %
297.8 %
24.1 %
Middle East
202,687,005
3,284,800
57,425,046
28.3 %
1,648.2 %
3.3 %
North America
340,831,831
108,096,800
252,908,000
74.2 %
134.0 %
14.6 %
Latin America / Caribbean 586,662,468
18,068,919
179,031,479
30.5 %
890.8 %
10.3 %
Oceania / Australia
34,700,201
7,620,480
20,970,490
60.4 %
175.2 %
1.2 %
WORLD TOTAL
6,767,805,208 360,985,492
1,733,993,741
25.6 %
380.3 %
100.0 %
NOTES: (1) Internet Usage and World Population Statistics are for September 30, 2009. (2) Demographic (Population) numbers are based on data from the US Census Bureau . (3) Internet usage information comes from data published by Nielsen Online, by the International Telecommunications Union, by GfK, local Regulators and other reliable sources. (source: http://www.internetworldstats.com/stats.htm)
It is therefore no surprise that individuals increasingly manage their finances online. It provides an efficient and quick way to stay in control of your investments, anywhere in the world at any time. Online investing is effective and convenient and enables people to manage their investments alongside their busy lifestyles. Benefits of online platforms include:
• Control
• Independence
• Involvement
• Monitoring
• Access
• Consistency
• Economies of scale
• Enhancement of consumer experience
Managing your investments online may require the help of a professional. Whether the market is volatile or whether you simply appreciate having regular assessments of your investments, you may want to speak to a financial consultant for advice. At deVere, our consultants can provide you with all the latest information on the markets, tools and information alongside a flexible product range and a wide range of investment funds, in order to provide financial advice suited to your needs.
Mutual Fund Platforms Online platforms can be categorised into three main areas. Some platforms offer trading of individual stocks and shares in a wide range of world stock markets. Other market services selling derivative-style products such as CFDs (contracts for difference), futures and spread betting. These are essentially a way of gearing up your investment in a particular market and are higher-risk approaches. The availability of certain services depends on your jurisdiction. For example, spread betting is not permitted in the US as it is deemed to be gambling. The third access point to the financial markets is fund platforms. Also known as fund supermarkets, these are secure websites that allow investors to pick and choose from a range of mutual funds and build their own portfolios. Some platforms simply offer as many funds as they can find and leave it to the investor to trawl through thousands of funds using search tools to narrow down their choice of funds.
Guide To Investing Online
Other platforms offer a more restricted range of funds. Fund Platforms have become an efficient means of Mutual Fund distribution, generally, having low administrative costs and large networks of financial planners or bank branches through which they can distribute. Independently minded and technologically astute investors are able to empower themselves to become as involved in the investment process as they feel necessary. The growth and convergence of two market segments has seen an unprecedented increase in the demand for technology based financial solutions.
• The global mutual fund distribution industry
• The growth of the internet and reliance upon online technology
How to choose the online trading platform that is right for you? Before you decide to go forward with online trading, here is a guideline of the 12 must-haves which an online trading platform should offer you.
1. Access to accurate information in real time
Real time information enables you to take investment decisions at the right moment
2. High security
Make sure your platform is coded at the highest security level (i.e. SFL Security Certificate)
3. Independent fund research
The platform you choose should include research from a global leading independent investment provider
4. User friendly
Make sure you choose a platform that you feel comfortable with and find easy to use
5. Client support
Choose or help is available to online customers
6. Established presence
Choose a fund platform that has a proven track record
7. Client confidentiality
Your chosen online trading platform should offer high levels of client confidentiality
8. Comprehensive and consolidated statement
Receive a maximum of information to keep control of your investments
9. 24/7 Access
The online trading platform should be available to you at all times
10.Tailored/automated portfolio monitoring
With today’s technology you can set automated alerts to suit your investment objectives
11.Platform based in a highly credible centre
A secure environment brings higher security (i.e. platforms based in countries such as Luxembourg will be more secure)
12. Innovative
Choose a platform that keeps up with industry and client development needs
Guide To Investing Online
How to find the right solution It may at times be difficult to be able to adequately compare the options open to you as an investor. Your adviser can help you navigate the world of online investing to find the vehicle that will help you reach your intended destination. At the deVere Group, our consultants work with some of the leading investment houses and insurance providers. All our employees have been trained to provide the best advice and are familiar with the local knowledge and requirements of the region you live in/may relocate to. We can advise on the different options that may help you maximise your wealth in order for you to look forward to a more secure financial future. If you would like to speak to a financial consultant about investing online, please contact us at info@devere-group.com The advice we provide is free and without obligation. To find out more about international mortgages, insurance or money exchange services, please contact us on internationalmortgages@devere-group.com
The advice we provide is free and without obligation.
Guide To Investing Online
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The companies below are part of the deVere Group: deVere and Partners (UK) Ltd is authorised and regulated by the Financial Services Authority (469151). deVere Recruitment Ltd (503055) are an appointed representative of deVere and Partners (UK) Ltd. deVere and Partners Investment Services (Pty) Ltd is an Authorised Financial Services Provider in South Africa. deVere and Partners (Belgium) BVBA is authorised by the Banking Finance and Insurance Commission (CBFA) in Belgium and registered on the intermediaries register under number 61476, category insurance brokers. The following group of companies operates under the same license in Belgium: - deVere and Partners (Cyprus) - deVere and Partners (Belgium) Limited BVBA, succursale Luxembourg S.a.r.l. - deVere Germany GmbH
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