Many different options are available today for investors. It has thus become increasingly difficult to choose the investment plans suited for individual needs. With an unpredictable economy, selecting a failsafe strategy is almost impossible. Making the right decision involves a variety of personal factors. The following are five unique investment options worth considering.
Commodities – Futures
Commodity markets are a distinctive form of investment based primarily on speculation. They focus on the supply and demand of real assets. Energy sources, metals, agriculture and livestock are examples of commodities. Moreover, they add dimension to an investment portfolio as they are different from traditional stocks and bonds. Options (futures) are generally traded based on speculation and involve higher-risks. The commodity based ‘ETFs’ present a practical option that can be backed by the commodities (physically) or based on the future of the commodities.
Nowadays, many investors are seeking digital alternatives. Binary options have become a popular type of investment. They allow for two types of results, in the form of ‘asset or nothing’ or ‘cash-or-nothing’ binary options. The ‘cash-or-nothing’ pays out a fixed amount of cash if a binary expires in the black. Alternatively, ‘asset-or-nothing’ binary option are designed to help pay out the amount of the ‘underlying security’. Both types provide advantages over more traditional platforms. Binary option signals allow for greater potential profits over time. Binary, or European-type options, offer some unique advantages for online trading. Additionally, recent regulatory changes have made binary trading more widespread than ever.
Real Estate Investment Trusts
Another opportunity that appeals to investors involves real estate investment trusts (REITs). Investors are capitalizing on rental incomes acquired through motel, hotel, office complex, shopping malls, and other real property holdings. They serve as inflationary hedges where investors receive dividends. Since real estate investment trusts do involve risks, prospective financiers can check the REIT index funds to view publicly traded REITs.
Forex is a term that stands for ‘Foreign Exchange.’ It has become very popular in recent years. Forex involves the trade of many different types of international currencies. Investors may buy and/or sell moneys such as the US Dollar (USD) and the Euro (EUR). The majority of Forex Trading occurs via a broker or a ‘market-maker.’ Each trader selects pairs of currency that he or she wants to trade. Once a trade occurs, the broker closes the trade.
Peer-to-peer lending has become another common method for investing. Today there are varieties of lending groups available for potential borrowers who have undergone a screening process. Buyers and lenders are coordinated in a manner designed to meet both parties’ requirements. One of the major advantages is that borrowers can acquire better interest rates and investors may collect an additional income. One of the disadvantages is that debtors could default on loans.
The five types of investments listed above provide some unique and potentially lucrative forms of investment options. Beginning traders and investors are encouraged to check out various options before selecting the right investment alternatives.