Types of investments in a stock trading account

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 However, as mentioned above, you can also invest in a number of other asset classes. Below we have listed the most common types of investments that stock accounts allow.

UK listed shares

The obvious starting point is companies that are publicly listed in the UK. If this is the case, they are likely to be listed on the London Stock Exchange. Think along the lines of British American Tobacco, BP, Barclays and Lloyds. With most share trading accounts, you have access to the entire library of FTSE 100 companies, so you have plenty of options for diversification.

Similarly, with share dealing accounts, you often get access to AIM. For those who don't know, this is a UK-based exchange that lists small to mid-sized companies that aren't large enough for the London Stock Exchange. Stocks on AIM are often volatile and suffer from lower liquidity. So keep this in mind.

International stocks

If you want to diversify into markets outside the UK, you'll be pleased to know that most share trading accounts allow you to do so. In most cases, the broker will give you access to the two main US stock markets - NASDAQ and New York Stock Exchange.

This allows you to invest in companies like Apple, Facebook, Ford Motors, Disney and Nike. It is important that you check the fees for international stock investments. You may also have to pay an additional fee to cover the cost of investing in a currency other than GBP.

Index (Indices)

Indices (or indexes) allow you to invest in the broader stock markets without having to select individual companies. In the UK, the benchmark index is the FTSE 100, which for those who don't know, is the 100 largest listed companies on the London Stock Exchange.

thaiexness20 provides you with interesting tip: "แทนที่จะซื้อหุ้น 100 หุ้นคุณสามารถลงทุนใน บริษัท ทั้ง 100 แห่งผ่านการค้าเดียวใน โหลด mt4 Exness. ดัชนีที่มีสภาพคล่องมากที่สุดในโลกคือ S & P 500 ซึ่งติดตาม บริษัท ที่ใหญ่ที่สุด 500 แห่งที่จดทะเบียนในสหรัฐอเมริกา. จากนั้นคุณมี Dow Jones ซึ่งติดตาม บริษัท ใหญ่ ๆ 30 แห่งในอุตสาหกรรมที่หลากหลาย.""

"Instead of having to buy 100 individual stocks, you can invest in all 100 companies through a single trade. The most liquid index in the world is the S & P 500, which tracks the 500 largest companies listed in the United States. Then you have the Dow Jones, which tracks 30 major companies in a variety of industries."

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Mutual Funds

If you have virtually no experience or knowledge of investments, we recommend that you consider a mutual fund. In short, mutual funds buy and sell assets on behalf of their investors. By pooling your money with thousands of other investors, the fund gains a multi-billion pound war chest.

Although you will have to pay a small maintenance fee when investing in a mutual fund, it is well worth the price. For example, the fund will consist of a team of highly experienced investors who will be fully supported by cutting-edge technologies. In addition, the fund will be actively managed, so you can enjoy the fruits of passive income.

Bonds and Gilts

An additional stream of passive income that a stock trading account can provide is bonds and gilts. Bonds require a principal investment and in return you receive fixed interest payments until the bonds mature. When they do, you get your original investment back in full. Gilts work the same way as bonds, although they are issued by the UK government. Although they are virtually risk-free, the yields offered are very low.

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