3/29/2023 - Economy and Finance

There's no need to be a millionaire to start investing

By lucina pallavicini

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Imagen de portada

One of the most common myths to invest is that " It takes a lot of capital to pull out”.This phrase made a little more sense several years ago, when the capital market and finances were considered "equivalent things" and only individuals with great assets had the luxury of a financial advisor.Nowadays, although the famous commercial and investment banks continue to focus on high-capital individuals, there are several financial brokers that seek to capture individuals left side by traditional banks. Another example without going beyond is the Fintechs, which in many cases, in addition to working as a digital bank, allow you to invest in assets of the financial market or crypto.

The Brokers

Like every new business model, these brokers are born as a result of an unmet need of consumers. These new applications arise to achieve a segment of society (e.g. young people in their professional principles) that no one was looking at. According to a study by Deloitte, 10 million Americans opened an investment account during 2020, and only in January 2021, 6 million more were added that downloaded some kind of application to invest. Undoubtedly, pandemic with today's advanced technology and the information boom began to accelerate this trend of investment democratization.

Advantages of Investment Apps

So, what advantages do these new and modern applications offer us?
  • First and foremost, in many of them There is no need for an initial minimum or a relatively low amount compared To what traditional banks usually request.
  • Do not require an impossible bureaucracy not thousands of papers and forms to complete.
  • Most of these platforms allow open a virtual investment account in 15 minutes, provided the documentation is checked. The opening process is usually super user-friendly and effective.
  • Many of these brokers adopt a System of commissions underwhere cost per trade It could be pennies.
  • often perform the known investor test in order to help define the degree of knowledge the customer has, and the mode of recommendation, a possible insight into How to define the investment strategy taking into account its aversion to risk, investment horizon, goals and needs.
  • The best known of these international platforms are: Interactive Brokers and TD Ameritrade. In Argentina, there are also several Alycs that allow to invest in both weights and dollars, and with no minimum value!
Friendly-reminder! Look, you need to be careful with many applications that add up to the wave of financial inclusion, but position themselves creating an investment experience similar to a game and/or bet. Investing is NOT a game, it is your capital, your savings and if you will take the reins of the matter can not be alien to what it implies. So, in time to start investing, as for everything I would say, _

Last TIP!

_ The Intelligent Inverter by Benjamin Graham. Far from being a trading manual, this book can be a great tool for the person who wants to start investing and does not know how. He gets himself in Free Market and in 2 days he has him in his house!

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lucina pallavicini

lucina pallavicini

Hi, my name is Lucina and I'm Lic. in Business Administration, finishing a Master's degree in Finance at UTDT. Today I perform as financial advisor to Wealth Management in Criteria Alyc.


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