What are cryptocurrencies? In fact, a cryptocurrency is nothing more than a digital form of money. Just as there are different currencies such as euros and dollars, there are also different digital coins such as bitcoin and litecoin . Where euros and dollars are tangible and you can therefore physically have them in your wallet, a cryptocurrency is not. Cryptocurrencies, or crypto for short, consist of encrypted pieces of digital code. In simple terms, this comes down to the following: When you take a €10 note out of your wallet and look at it closely, you will see a serial number on it. This serial number may seem like nothing more than a long series of numbers, but in fact it contains a lot of information, such as the origin of the note, the printer, the date the note was printed and so on. When you take away the tangible note itself and only store the serial number, or “the code”, somewhere, then you are essentially talking about the idea of a cryptocurrency. This piece of code is still worth €10, only this value is not linked to a physical piece of paper. Cryptocurrencies therefore get their value from all kinds of pieces of code.  Why do cryptocurrencies exist? We all remember the  credit crisis  of 2008, in which banks and financial institutions were mainly to blame. Confidence in banks took a big hit as a result. Many people have little to no knowledge of financial matters such as mortgages and loans, so people assume that banks and financial institutions provide reliable and honest advice. This turned out not to be the case at the time. Many people therefore felt that there had to be an alternative to make transparent payments without the interference of banks. This is why cryptocurrencies were set up. Since when does cryptocurrency exist? Programmer Satoshi Nakamoto published a paper in 2008 explaining the idea of ‘blockchain’. He called it: “Bitcoin: a peer-to-peer electronic cash system”. He introduced the idea of a digital payment method where one  can complete transactions without the intervention of banks  . However, something or someone must be present to verify transactions and ensure that the online currency is not double-spent. This is all regulated by the principle that every “participant” in the payment system automatically checks each other by means of a so-called  proof of work  system. The first concrete currency that resulted from this principle is the well-known Bitcoin. Bitcoin Mining The bitcoin is the very first crypto currency, set up by Nakamoto. You can therefore see the bitcoin as a kind of ‘primordial currency’. But how exactly is a bitcoin created? You have probably heard of the term ‘mining’. Mining bitcoins means obtaining a reward in the form of bitcoins, for making your computer available to the network. As mentioned before, the blockchain must be constantly checked to ensure that no double spending is done and that transactions are verified. This requires computing power. A lot of computing power. To ensure this, the blockchain gives each computer that checks a new block a reward in the form of bitcoins. What do banks and governments think? Banks and governments have not welcomed cryptocurrencies with open arms, and that is an understatement. They are already coming up with all kinds of policies and regulations to limit cryptocurrency in its possibilities. These actions, which probably stem from a kind of fear, make sense in a way: banks and governments will have a lot less influence on global payment transactions.  One of the most frequently heard reasons for the measures against crypto is the fear that due to the anonymity of cryptocurrency it will be used extensively to finance crime and war. However, these kinds of illegal practices are currently also financed without using crypto. It is also often argued that in the case of crypto, the government can no longer guarantee the savings of its citizens, which means that  cryptocurrencies  would not be safe. Banks have already shown this before to cause a crisis, in which governments could not guarantee the money of the citizens. Whether the traditional banking system is reliable is also questionable. Governments and banks are struggling with a fear of change and the fear of losing influence. This unfortunately limits the opportunities for blockchain and cryptocurrency to grow rapidly. Investing in cryptocurrencies Are you curious about investing in cryptocurrencies but don’t know exactly which broker you can trade with?  Then compare brokers that offer cryptocurrencies  and find the broker that suits you best! Our reading tips for the novice investor

What does leverage mean in investing? When you start to delve into investing, you will undoubtedly come across the concept  of leverage  . What exactly does this leverage entail? And how do you use it to your advantage? In short: by means of leverage, you can  make  a  large investment with a small amount  . This makes it possible for you as an investor to profit to a greater extent from fluctuating price movements. This allows you to realize larger profits – but also losses.  What is leverage? The concept of leverage and leverage are the same. A leverage is shown as a ratio. Think of the scale 1:50 when you read a map. A leverage number is therefore always shown as 1:100 or 1:2500. This number is called the multiplier of the leverage. If a leverage multiplier of 1:50 is stated, this means that for every euro invested, you place an investment of 50 euros. For example, do you want to invest a maximum of €750? Then with a multiplier of 1:50 you can place an investment of (€750 x 50 =) €37,500. This clearly shows that you can make a large investment with a smaller amount by means of leverage. The leverage in a nutshell If no leverage is applied, you only profit from the increase in the price or you lose from a decrease in the price. If leverage is applied, you can speculate more easily on a small price movement. For example, if you buy a share for €25, then: Get a profit of €2.50 with a 10% increase without leverage If you lose €2.50 on a 10% drop without leverage If leverage is applied, you will achieve completely different results. This means that much larger profits and losses can be achieved with relatively small price movements. If a leverage multiplier of 50 applies, you can make an investment worth €1,250 with an investment of €25. The results are then: With a 10% increase you will make a profit of €125 If there is a 10% drop you will lose €125 As you can see, the result with leverage is much higher. Always keep in mind that this also applies to losses. You can profit from larger profits, but the chance of a considerably larger loss is also present. Investing with leverage As an investor, you can invest with leverage via a so-called CFD, Contract For Difference . By means of CFDs, you can make investments with a larger amount than is in your investment account. Via a CFD broker, you can take a long position or a short position in a CFD.  Applying leverage is fully automatic. When you take a CFD position, you do not become the owner of the underlying product. The CFD broker finances your investment, as it were, and you pay financing costs for this. You buy for a larger amount than your position and profit from the profit. Be careful! Leverage can also work against you. This means that not only can your profit be greater, but also your loss. Leverage works both ways. The risk of leverage Achieving higher returns often comes with higher risks. This is because you can make a larger investment with a relatively small amount. This investment can turn out well, allowing you to profit from high profits. However, this investment can also have negative consequences. The leverage can also work against you. This means that you can suffer a large loss with a small investment. Every euro in the price drop then entails a higher loss. It is therefore important to always deal responsibly with investing. Make well-considered choices and do not take risks that keep you awake at night. Take your time to gain experience with investing so that you can optimally use this useful instrument to earn money. It is also certainly not unimportant to choose a suitable broker that fits your investment strategy.  Compare the different online CFD brokers  and decide which broker is most suitable for you! Our reading tips for the novice investor

Derivatives, what makes them interesting? Trading on the exchange markets is extremely popular, because banks are offering increasingly lower interest rates. It is therefore not surprising that more and more opportunities are being offered to investors to achieve higher returns. Derivatives are a bundle of investment opportunities that an investor can use to increase the chance of higher returns. However, they also involve greater risks. Below you will find out exactly what derivatives are, what forms they come in and what exactly the advantages and disadvantages are. What exactly are derivatives? Derivatives is a collective name for special financial products that give you the opportunity to trade shares, indices,  commodities  or currencies for smaller amounts. Derivatives also make it possible to trade products such as grain, cotton or oil. Derivatives are mainly used to weigh different levels of risk and to try to achieve a higher return on the underlying value. Financial derivatives are traded via brokers, banks and  online investment platforms . However, they are also traded between parties. This last form of trading is called OTC (over the counter). The popularity of derivatives has grown enormously thanks to the ease with which they can be opened. If you want to invest in oil, for example, you do not have to buy physical barrels, but you can use a derivative. Derivatives from the Middle Ages Farmers in the Middle Ages could find it difficult to determine a value for their products. This caused unnecessary stress and uncertainty. That is why an oral derivative was introduced in the 16th century. This promised that their products would be bought at a specific time for a specific price, regardless of the current price. This meant that in the worst case the farmer would get less than what the product was actually worth, but in the best case they would get much more than they would normally have gotten. A good example of an old derivatives market is the Amsterdam Tulip Exchange. In those days derivatives were only used to reduce the risks of selling for farmers. Today it is a means to achieve attractive returns. Different types We have come a long way since the Middle Ages and now know many types of derivatives, fitting the different purposes that a derivative can have. Below is a list of the different derivatives that we know. Options When you buy an  option  , you are buying a right to sell a specific stock on a specific date for a specific price. This closing date is also called the maturity date. Swaps An interest rate swap is when two parties exchange interest rates for products. This is often done by organizations among themselves. Futures A  future  has a special contract with a fixed date in the future on which it will be settled. The moment of sale is fixed. The return is what the actual value will be at this moment in the future. CFDs Also called a  Contract For Difference  . This is a risky derivative that helps with trading expensive products or trading larger quantities at once. With a CFD you trade on margin and thus ensure that people with less money can trade more. With a CFD with a margin of 10%, for example, you only pay 1,000 euros for a position of 10,000 euros.  However, the risk  is that you can lose your capital and some brokers charge interest on the amounts invested. CFDs offer opportunities for large returns, but also large losses. These are risks of a derivative The use of derivatives offers great opportunities, but also entails serious risks. The most important risks are briefly listed below. These are the main risks Leverage : Due to the  leverage effect  of a CFD, for example, small fluctuations in the market can cause large changes in the value of your share. These increases and decreases can continue indefinitely and you can lose everything. On the other hand, it can of course also increase potential returns. Counterparty : Counterparty risks are run with an over-the-counter transaction. These transactions are almost exclusively carried out by large organisations. The risk here is that the payment is not guaranteed. If the company goes under, you will be in line just like other creditors. You have no special right to get this investment back. Market risk : The value of a derivative is determined by the value of the underlying products. The derivatives themselves do not have their own value, but only function as a kind of mirror. If it turns out that the value of the position has been estimated much too high, this can have enormous consequences for the price of the derivative. An additional risk is the fact that some, mostly American, brokers also sell cheap products that are of poor quality. These are often funds with various derivatives, to spread your risk. However, the returns on these derivatives are often very low and you pay a lot of costs for the broker to manage this fund. Compare brokers and start investing in derivatives Are you interested in investing with derivatives after reading this article?  View brokers that offer derivatives here , compare and find the broker that suits you best! These are the main risks Leverage : Due to the  leverage effect  of a CFD, for example, small fluctuations in the market can cause large changes in the value of your share. These increases and decreases can continue indefinitely and you can lose everything. On the other hand, it can of course also increase potential returns. Counterparty : Counterparty risks are run with an over-the-counter transaction. These transactions are almost exclusively carried out by large organisations. The risk here is that the payment is not guaranteed. If the company goes under, you will be in line just like other creditors. You have no special right to get this investment back. Market risk : The value of a derivative is determined by the value of the underlying products. The derivatives themselves do

Forex trading, what is that? Forex (FOReign EXchange) is actually nothing more than a group of buyers and sellers from all over the world who buy and sell different currencies for a fixed price. Through this exchange, banks, governments and investors can trade currencies. These transactions are made with a view to returns, but also to practically realize foreign purchases. When a tourist outside the eurozone withdraws the local currency, this is also a transaction on the forex market. A large part of the forex transactions are therefore carried out for practical reasons. However, the number of transactions per currency has an impact on the value of this currency. It can therefore make some currencies very volatile.  Also watch our video about Forex Trading below. https://www.youtube.com/watch?v=AtAzetyhSso How do currency markets work? Forex markets or currency markets  work differently than the stock, commodity and crypto markets. Forex trading is done via the ‘over-the-counter market’ (OTC market). The forex market consists of a global network of various large banks. Due to this global coverage, one can trade forex all day long. The market does not close, as is the case with stocks. After all, they are on a specific exchange. The forex network is spread over four trading centers. These are: New York, Tokyo, Sydney and London. We distinguish 3 types of forex markets Future forex market : Here, a currency is bought or sold for a predetermined date and time for a predetermined price. This date and time is always in the future. A major difference between future forex and forward forex (described below) is that the future forex is legally binding. This means that the contract cannot be canceled in between. Spot forex market : When you get off a plane and exchange your euros for the US dollar at the airport, you are trading ‘on the spot’. A spot forex market is therefore always a transaction that is handled directly, often physically by a person. Forward forex market : As with the futures forex market, a contract is purchased that will be executed on a set date, time and for a fixed price. However, with forward forex the date can also be changed in a series of dates. On one of those dates the agreement of the contract is then concluded. This ensures a smaller risk than with future forex trading. What is a base currency? Forex trading has its own operation  using currency pairs. These are also used to maintain an overview. Here you can see the two currencies in which you are trading. On the left is the base currency of the pair. For this example, the euro (EUR). On the right is the price currency, which in this example is the Canadian dollar (CAD). Forex is quoted in pairs, because you always sell currencies to buy others. After all, that is where the return is. Both currencies are indicated with an abbreviated code, such as EUR/CAD. In this case, the euro is sold and the Canadian dollar is bought. Within this, we distinguish  four pair groups: Giants . Currencies that together account for 80% of global trading. Think of big players like EUR/USD, EUR/JPY. Minor pairs . These are the different currencies against each other rather than against the dollar. Think of JPY/CAD or EUR/GBP New pairs . This pits a major currency against minor currencies from emerging markets. For example, EUR/NZD. Regional Pairs . Pairs classified by region – such as Scandinavia or Australia. For example: EUR/NOK, AUD/NZD, AUD/SGD What Moves the Forex Markets? The forex market is driven by activity around the world. Forex primarily responds to supply and demand for the specific currencies (pairs) you are trading.  Increased demand for USD can cause the US dollar to strengthen against, for example, the Euro (EUR). Central banks Because currencies are primarily intended as a stable means of payment, they are strictly controlled by central banks. They ensure that prices cannot fall or rise dramatically. News items When trading currencies, investors are looking for emerging markets. If there are many economic developments in a particular country, the demand for currency by investors will increase. This will cause the price to rise. However, current events in this or another country can have a direct effect on the market. Investing in currencies of emerging economies therefore means that you have to keep a close eye on the news locally and internationally. In addition, an increasing demand for the price currency of the base currency that you have purchased can also have a direct effect on your return. market sentiment By following the news closely, you also get a good idea of ​​what the sentiment can be. If there is a lot of negative news about Japan due to a large-scale outbreak, housing crisis or other negative trend, there is a big chance that this will affect their economy. This also makes it likely that investors will not invest in this currency or will invest less in it. Investor sentiment is one of the biggest factors that determines the course of a currency return. Compare brokers and start index investing After reading this article, are you interested in investing in forex?  Check out which brokers offer forex investments  and find the broker that best suits your investments! Our reading tips for the novice investor

The meaning of bonds When the government or a company issues a loan, it is a debt certificate. The official name for such a debt certificate is a bond. In the case that you purchase a bond as an investor, you will receive a predetermined interest rate for it. But it is also possible to trade in the value of a bond, so actively invest. What exactly should you pay attention to if you were to do that? The benefits Most investors buy bonds to ensure that the portfolio becomes more stable. This is partly due to the lower risks of bonds, in contrast to the risks of possible shares. Normally you always receive the agreed interest including the repayment, provided that the company does not go bankrupt. In the event of bankruptcy, you run the risk of losing your entire investment. One of the biggest disadvantages of investing in stocks is that it is quite uncertain. For example, prices can rise considerably, but the results show that the declines can sometimes be just as sharp. For this reason, it is a wise idea to distribute your risks as well as possible. By purchasing bonds, you create the possibility of compensating your losses when prices fall, to the extent that this is possible of course. In recessions, bond interest rates normally rise the most. How is it possible to make a profit with bonds? You have now read the broad basics about bonds, but how can you now make a profit with this investment product? This can be done via the price yield and via the coupon interest. What is coupon interest? Coupon interest is the interest paid by bonds. This normally occurs on a monthly basis, and can consist of both fixed and variable percentages. A variable percentage is, for example, linked to the level of Euribor. The interest is often paid once a year. In the event that multiple owners were in possession of the same bond in a certain period, the total interest is divided fairly among these parties. The Usefulness of Price Yield Because you can freely trade bonds, just like with shares, you can also make a profit because the value of a certain bond increases. The value of a bond will increase when the market interest rate falls. A higher price can also develop due to an improved creditworthiness. With specific bonds, the price is largely determined by the situation of supply and demand. The different types of bonds In the world of bonds there are  different types . For example, you have a regular bond, a subordinated bond, a perpetual bond and a convertible bond. The ordinary bond This is the form that investors choose most often. The characteristic of the ordinary bond is that there are no specific properties. For that reason, an ordinary bond is an accessible investment product. The subordinated bond A subordinated bond is usually riskier than a normal bond. This is because you only get paid later, when an underlying party is declared bankrupt. However, this risk does have an advantage: in most cases you receive more interest with a subordinated bond. Of perpetual obligation A perpetual bond has an indefinite term. This means that perpetual bonds cannot be redeemed at any time, and  can remain open for a longer period of time . The company can even decide to redeem some bonds at a fixed price.   The convertible bond A convertible bond can be converted into a share of the company. This is possible because it is determined in advance how many shares you can receive for the value of one bond. De floating rate note There is no fixed interest rate for a floating rate note, which is why this type of investment product normally moves with the current market interest rate. The biggest advantage of a floating rate note is that you can also achieve a higher  return  in the event of a rising interest rate. Conversely, however, it can be the case that a falling interest rate causes the return to fall again. The price of this investment product is normally less volatile, because the market interest rate and interest rate move with each other. What about the creditworthiness of bonds? Every type of bond has certain risks, just like a share. It is important to check if the government or company has financial problems, because the risks depend on the creditworthiness of the lender. Not receiving the loaned amount due to bankruptcy is the  biggest risk  you have when investing in bonds. Creditworthiness is generally higher for governments than for companies. But in the event of a debt crisis (for example the most recent one in the EU) it can certainly also be the case that governments can no longer repay the loans of bonds. For example, bonds issued by the Greek government were not safe for a certain period of time, and this was due to the debt crisis in the past. The risk and return As discussed earlier, the biggest risk for an investor in bonds is that an amount lent will not be returned. In line with this fact, risk and return are always linked; in the event that the risk of a bond increases, the interest rate also increases. In this situation, investors often only want to lend money if they get a return for the risk involved. It is wise to look at report figures to determine the  value of creditworthiness  when buying bonds. These report figures are released by agencies such as Moody’s and Fitch and Standard & Poor’s. With an AAA status the creditworthiness is excellent, with a DDD status you better refrain from the bond. This makes it easier for you as an investor to estimate the creditworthiness and to act accordingly. Start investing in bonds Do you want to start investing in bonds? Then you need an account with an online broker.  Check out brokers that offer bonds and start comparing! Our

The rise of mutual funds Nowadays, investment funds are very popular. This is not so strange, considering the fact that it is more complicated to invest in shares yourself than to do so in an investment fund. But what exactly is an investment fund? And what are its possibilities? The answers to these questions can be found in this blog. The meaning of an investment fund An investment fund carries out investments on behalf of a large group of clients. These funds invest in various products. These can be mixes of shares, but also other investment opportunities. You receive a participation when you deposit money into the investment fund. If your investments are doing well, you can achieve a positive return . Investing yourself through an investment fund It is possible to invest in an investment fund through a broker. A broker ensures that you as an investor can buy and sell investment products. In this way, you could say that a broker is a kind of intermediary between you and the stock exchange. You have two options: actively invest in an investment fund, or you buy participations for a longer period. How do you speculate on the price of an investment fund? It is possible to speculate on the prices of investment funds. You trade in the short term. You do not physically hold the investment product, but you actually predict what will happen to the values in the future. For example, you can even predict how and when market declines will occur, and in this way you can earn money by falling prices. Buying shares in an investment fund For most investors it is more advantageous to invest for the long term, within an investment fund. By participating, investing money within the investment fund, you are entitled to a certain part of the fund results. The results that are ultimately paid out to you usually consist of an increase in the value of the existing securities and dividends. Compare brokers and start investing in mutual funds! Curious about investing in investment funds after reading this blog? Check out all brokers that offer these funds and find the broker that best suits your strategy! Our reading tips for the novice investor

How are turbos constructed? By investing with a turbo you can use leverage to increase your profit. This Turbo always needs an underlying value in the form of shares, currencies, bonds, commodities or investment funds. The Turbo ensures that the profit can be a lot bigger, but it also ensures that the risks increase. So you have to look carefully at whether and when the turbo is used. What can I do with turbos? A turbo is a product that belongs to a share (this can also be a bond, currency or a commodity, for ease of reading this blog will be referred to as a share). This turbo applies leverage to the underlying value. A turbo is used to respond to a rising or falling trend. It is indicated that the value of a share is expected to rise, in technical terms going long. Or it is expected that the value will fall, in technical terms going short. A turbo can be purchased on a limited number of products. With a turbo you do not buy the actual share but a product based on it. This means you only have to pay a fraction of the price. The turbo works as a lever , which means the profit is a multiple of the increase in value of the share, but the loss is also a multiple of the decrease in value of the share. For example, if the value of the share increases by 1%, the value of the turbo increases by 5%. But the same applies to a decrease, if the share decreases by 1%, the turbo also decreases by 5%. This ensures large profits, but also large losses. A turbo is therefore a product with a high risk . A comparison To explain a turbo, buying a house can be used as a calculation example. Suppose you buy a house for €250,000. For this, you take out a mortgage of €200,000 and invest €50,000 of your own money. In this comparison, the mortgage is the underlying asset (the share) and your own money is the turbo. A change in the value of your house acts as a lever on your own money. If the value of the house rises to 300,000, your mortgage remains the same, but your own money doubles from €50,000 to €100,000. If the value of your house falls, the mortgage remains the same, but your own money falls. Suppose the value of your house falls to 200,000. The mortgage remains, but you no longer have any of your own money. A turbo on a share works in a similar way. An example If we translate this to the stock market, we get a similar picture. Suppose you buy a turbo on a share of a car manufacturer. This share has a value of 200 euros at the time you buy the turbo. You then buy a turbo long with a stop loss at 180 and pay 20 euros (200-180) for the turbo. The 180 euros are financed by the bank where you buy the turbo. If the share then rises to 220 euros, the turbo rises to €40 (220 – 180 for the bank). In this example, the price rises by 10% from €200 to €220, but the turbo rises by 100% from €20 to €40. The leverage in this example is therefore times 10. This works the same way if the price falls. With a fall of 10% from €200 to €180, the turbo loses its value because the 180 goes entirely to the bank. Shorting a turbo works in the same way with leverage, except that the bet is on a decrease in value Curious about investing in turbos? Check out the  brokers that offer turbos! Our reading tips for the novice investor

What is yield? This blog explains what return is. In this case, it is about the return that can be achieved when investing . You will find out what it is made up of and how you can calculate it. Return is used more often and has multiple meanings. In this blog, we will discuss what return means in the world of investing. Read on quickly if you want to know more about return. Yield, the meaning Yield is a word that is not only used when we talk about investing our money. It has multiple meanings and can be used in many different situations. Yield means something like yield, productivity or profit. This can be seen in a factory or on the land, for example. When we use the word for investing it means “the profit achieved on an investment”. The return is generally expressed as a percentage over, for example, a month or a year. Investing and returns If you are going to invest in shares, bonds or index trackers, the goal is to make a profit. By making a profit, your money becomes more valuable. If investing did not yield anything, people would keep their money under their mattress. When investing, you always run the risk of losing part of your investment and that your money will therefore become less valuable. In order to take this risk, there must of course be something in return. That is the return that you can make by investing your money. The return and the risk always go hand in hand, with more risk there is a higher return and with less risk you also receive less. How do you achieve it? There are several ways to achieve returns when investing. These methods are explained below. Price gain The capital gains of your investments account for by far the largest part of the return. The capital gain is achieved on  the price . The difference between the purchase price and the sales price of your investments is your capital gain. The greater the difference between these two prices, the higher the return you achieve on your investments. Suppose you buy a share of a telecom company for 100 euros. After 10 years the value of that share has risen to 125 euros, you then have a capital gain of (125-100) 25 euros. Later in this article we will show you how to calculate the return in its entirety. Dividends or interest Another way to earn a return is through interest or dividend. You can receive interest if you invest in bonds, you actually lend your money to the issuer of the bond. This could be the Dutch government, for example. By paying interest, the issuer gives you the certainty that the loan can be repaid and you receive compensation (interest) on your lent money. At the end of the term of the loan, you will receive the entire amount that you lent back. During the term, you will receive interest on the borrowed amount and this is the return that you achieve. There is also a way to make a return when investing in shares, in addition to the price gain. We are talking about companies that pay dividends on their shares. Because you are a shareholder, you can share in the company’s profit. The profit distribution that a company makes is called dividend. These shares are therefore  dividend shares  and in this way provide extra profit. Yield, how do you calculate it? You can calculate the return you receive as a percentage of the amount you invested. To do this, you use a formula called “new minus old, divided by old formula” (new – old / old x 100%). With this formula, you first calculate the result of the share: new (sales price) – old (purchase price). Then you divide this result by the amount you initially invested, or the share price when you bought it. An example If you bought a share for €10.00 and sold it after a year for €12.00, you calculate the return as follows: €12-€10 = €2, this is the result. To calculate it as a percentage, you then divide this by old: €2:10 = 0.2 x100 = 20%. This share has therefore yielded a return of 20%. Compare brokers To start investing and earning returns, you need an account with a broker. Easily compare brokers via  the comparator of Compareallbrokers.com . Our reading tips for the novice investor

What is a spread? At many  (CFD) brokers  you often come across the term  spread  . The term has to do with the costs that come with trading. To better explain the concept, you must first get acquainted with two other concepts. 1. The asking price . This is the amount you have to pay when you buy a  share . If a share has a market value of, for example, €20, that does not mean that the asking price is also €20. The selling party can choose to sell his share for €20.01. Then it is up to the buyer whether he agrees to this price. Hence the name ‘asking price’, it is the price that is being asked for a share at that time. 2. The bid price . This is also called the ask price. When you sell a share, you do not get the ask price for it. But the bid price. This will always be lower than the ask price. Because you sell or buy shares from an intermediary, the broker. And a broker needs margins to make a profit. The difference between the ask price and the bid price is the  spread . The spread is the profit margin for the broker  For which investors is this important? The spread is not that exciting for long-term investors. On the other hand, it is for  active investors,  especially  day traders . Day traders handle many transactions in a day. Therefore, they must be well informed about the spread of the products (for example CFD on shares) that they buy and sell. Because they continuously pay the spread and with many transactions the costs of this can be quite high. Factors that determine the spread There are two types of spreads, the  fixed spread  and the  variable spread . The fixed spread is always the same. The variable spread is not. The height of the variable spread is determined by the following factors: Liquidity. Liquidity indicates how easy it is to trade stocks. If liquidity is high, the spread will decrease. Volume. Volume indicates how much is traded in a stock. With high volume, the spread will also decrease. Volatility.  Volatility  indicates the movement of a stock. If volatility is high, the spread will also increase. Who determines the spread? Market  forces  create the spread. The supply and demand of shares allows the intermediary, the broker, to keep a small part of the transaction for himself as a profit margin. = The spread. But brokers do not always use the same spread. It is therefore worthwhile to compare brokers before buying or selling shares. Example: A share has an asking price of €22. The bid price is €21.85. If you already own this share and want to sell it, the broker will deposit €21.85 into your account. If you want to buy this share, you pay €22 to the broker. The asking price is what the broker asks for the purchase, the bid price is what the broker offers you when you sell. Compare broker costs Do you want to start investing? Then compare the spread costs that a broker charges.  Compare all CFD brokers now . Our reading tips for the novice investor

What is volatility? Share prices never stand still. Everyone knows the graphs of shares, even if you have never invested yourself. Prices can rise, fall or remain more or less at the same level. The extent to which prices fluctuate is called volatility . Low volatility is said to occur when the price does not rise or fall much. The price remains more or less the same. This is called a stable price. With high volatility, the price fluctuates a lot. It rises and/or falls with great regularity. Whether the price falls or rises does not matter for the term “high volatility”. Types of volatility There are two types of volatility. Historical volatility Implied volatility Historical volatility indicates what the volatility of a stock has been in the past . In other words, what the volatility of the stock has been. If this was low, the share has had a stable price in the past. If historical volatility has been high, the stock has experienced many fluctuations in the past. Implied volatility is precisely about the future volatility of a share. With the understanding that these are derived from option prices . Of course, no one can predict the market. Read more about options . Option prices are also no substitute for a crystal ball with which the future can be predicted, but they are a good indicator. Because option prices are linked to market expectations. If the market expects that there will be movement (high volatility) with a stock, the option price will rise. Option prices fall when the market expects that not much exciting will happen with a stock. (low volatility) Calculating stock market fluctuations Volatility can be calculated. Since historical volatility already knows what the share has done in a certain time frame, a calculation can also be made over that period. Historical volatility is always calculated over a period of one year. The calculation is as follows: Subtract the lowest achieved effect from the highest achieved effect of the past year. Now you have value A. Then you add the highest achieved effect and the lowest achieved effect together. Then you divide the result by 2. Now you have value B. Now you divide value A by value B and the result is expressed as a percentage. The higher this percentage, the higher the expectation will be that the share will move in the coming year. Example: The Alpha share achieved a highest market value of €14.20 and a lowest listed market value of €12.80 in the period from October 31, 2019 to October 31, 2020. The volatility of Alpha is (14.2 – 12.8)/((14.2 + 12.8)/2)= 0.1037037 Because the price volatility is expressed in percentages, you move the decimal point two places to the right, which in this case is 10.3%. Calculate price movement and price forecast If you know the volatility of a stock, you can also calculate a price forecast. The probability that the price movement for the coming year will adhere to the volatility is  68.3%. The probability that the stock will be in a range of a doubling of volatility in the coming year is  95.4%. The probability that the price will be within a range of three times the volatility is  99.7%. These three probability calculations are fixed values, arrived at after statistical research of the complete history of the global stock markets. The value of Alpha stock is now 14.20. The chance that the value of Alpha will be between €12.70 and €15.70 in a year is therefore 10.3%. (€12.70 = €14.20 – 10.3%, €15.70 = €14.20 + 10.3%) The probability that the value of Alpha will be between €11.30 and €17.10 in one year is 95.4%. (€11.30 = €14.20 -20.6%, €17.10 = €14.20 +20.6%) And the chance that the value of Alpha will be between €9.80 and €18.60 in a year is therefore 99.7%. (€9.80 = €14.20 – 30.9%, €18.60 = €14.20 + 30.9%) This calculation allows you to calculate the risk you run when purchasing shares and other securities. Play on price movements with CFDs With CFDs you can easily respond to price increases and decreases. For this you need a broker.  Find CFD brokers and compare . Our reading tips for the novice investor

Tax on your potential profits when investing in shares Normally, you pay 0% tax on the potential profits that you may earn from investing. Investments fall under box 3, or the wealth tax (this is the same with savings). This means that you do not immediately pay tax on investment profits that you have achieved, not even in the case of speculation . It is true that tax is paid on the total assets, which also includes your investments. You then arrive at a yield percentage of approximately 30%, the percentage that you pay on your investments. The yield percentage then gives a representation of 1.2% on your entire assets, or a fictitious 4%. However, these percentages are currently being reformed. The result is that the amount of tax that you pay on the assets can still fluctuate. Then there is a tax-free threshold, which you can calculate for your assets. It is not necessary to calculate wealth tax on this total amount. This threshold is approximately €20,000. Do you have a fiscal partner? Then this limit is set even higher. But how much tax do you pay when you buy shares? We will give an example for this. As an investor, you buy €30,000 worth of Philips shares, while your total assets amount to €50,000. After purchase, these shares increase in value by 10%, making them worth €33,000. Your total assets then become €53,000. It is not necessary to calculate tax on the €20,000, which leaves €33,000 on which you do pay tax. With a percentage of 1.2, this results in an amount of €396. You can also look at the situation from another perspective; you own €50,000, just like in the previous situation you buy the same shares of Philips again for €30,000. However, the shares decrease in value by 10%, now they are worth €27,000. The total assets amount to €47,000. No tax needs to be charged on the €20,000, this is now charged on the €27,000. This amounts to an amount of €324 in tax, since it is a percentage of 1.2% on €27,000. Read more about tax when investing in shares.  But what about dividends and taxes? In physical investing, dividend tax also comes to the fore. The meaning of dividend is that profit is paid out on a certain share, with a current percentage of 15%. The pre-tax levied here can be offset when income tax is introduced. Tax treaties often apply when a share originates from abroad. The percentage in the United States is around 30%, while in the Netherlands you only see 15%. The dividend on foreign shares is offset with the wealth tax in box 3. Which broker suits you? Got excited about investing after reading this blog? Find out which broker suits you best by comparing the most relevant brokers for you ! Our reading tips for the novice investor

How do you buy bonds as an investor? You have two options, should you be interested in bonds in the investment world: You buy the bonds yourself. You invest in bonds through an investment fund. This blog will explain the various pros and cons that you can find in purchasing bonds through these two options. Option 1: You buy the bonds yourself You can easily obtain bonds through most brokers. The biggest advantage of buying bonds yourself is that it is cheaper than investing through an investment fund. You pay fund costs when you invest through an investment fund. However, when purchasing bonds, you must have a higher capital at your disposal to prevent unhealthy diversification. The issue price, or nominal value of many government bonds is €1,000, which quickly amounts to €50,000 for corporate bonds . The value of previously issued bonds When purchasing previously issued bonds, you should pay close attention to the current value. This is shown as a band between the percentage and the known value. The interest rate, the value of the credit that is known to the issuer at that time and the remaining term are all factors that are constantly changing and influence the price of a bond. There are also bonds whose coupon can change (this happens, for example, after a fixed interest period). There may also be a coupon that is suspended or skipped under certain conditions, with an early redemption option. You should also pay attention to whether the bond at your current price still shows a sufficient yield percentage, if you look at your own risk profile and your alternative investments. To find out, look at the effective yield. Spread your wealth! There are also risks when you buy bonds. It is therefore important not to buy bonds from just one or two countries or companies. In any case, make sure that you have sufficient capital to be able to spread your options over different choices. Is this not possible? Then option 2 is a better idea for you, or buy bonds via an investment fund. Option 2: You invest in bonds through an investment fund. There are now enough  investment funds  where you can invest 100% or less in bonds. The biggest advantage of this: it is not necessary to independently search for suitable bonds, and you can already get started with a small and limited capital. It is possible to buy a share in an investment fund, this is possible when you have a small capital per share. There is a small downside to this: you do pay fund costs. However, these do not have to be too high. If you opt for funds that follow a cheaper index, you sometimes have to deal with a percentage of 0.15% fund costs per calendar year. Distribution is important Diversification is less important when you invest via an investment fund, but it is never unwise to diversify well here too. For example, do not only buy bonds with a high risk (high yield). Or choose multiple regions to place your investments in. With which broker can I invest in bonds? Are you excited about investing in bonds after reading this blog?  Then check out all brokers that offer bonds  and compare them to find out which broker suits you! Our reading tips for the novice investor

EUR/USD, what does it mean? The Euro (EUR) and the US dollar (USD) are widely used currencies worldwide. Both currencies together make up a large part of the total (international) transactions that are carried out daily. It is therefore not surprising that the EUR/USD combination is popular among traders and investors. For example, the fact that EUR/USD is the most liquid currency pair in the world. In addition, there are many companies worldwide that come into contact with both currencies on a daily basis. For example, think of multinational companies that have offices in both the Netherlands and the United States. These companies are partly responsible for the large number of transactions that are carried out. The popularity of EUR/USD is not only due to the fact that companies regularly conduct transactions in this currency. Another reason is the fact that there is a lot of information available about both the euro and the dollar. You could say that the motivations behind both currencies are quite transparent and explainable. In daily practice, it appears that many stock market traders anticipate the transparency of the currency pair. The number of people who trade in EUR/USD is very high and this causes high volatility within the rate. All in all, EUR/USD is an interesting product for both novice and advanced investors and traders who would like to trade in currencies (Forex) . The History of EUR/USD Anyone who examines the popularity of EUR/USD might assume that both currencies have been around for ages. In practice, however, you will be disappointed. The euro only made its physical debut in 1999. This does not say everything: the euro actually existed at the beginning of the twentieth century, but only digitally. At the beginning of the twentieth century, it was therefore not yet possible to own physical euro notes or coins. Since the end of the twentieth century, it did not take long for the euro to prove itself to be a proven and popular currency. The dollar has been around for a while. The dollar was introduced in 1792, when the American Constitution was designed. Since then, the dollar has proven to be a (relatively) stable currency that has managed to gain a lot of popularity over the years. For many investors worldwide, the dollar is the absolute standard. The euro has had its share of undesirable blows in the past. The main one was triggered by the credit crisis of 2008. This started with the bankruptcy of Lehman Brothers. Between 2008 and 2014, the euro suffered severe consequences. A historic decline in the value of the euro was central to this. A crisis followed in Europe, as well as in the United States. Since then, there have been a number of significant ‘swings’ in the EUR/USD rate. These were all the result of economic or political circumstances. The factors that influence the currency pair Below you will find the role of both currencies within the EUR/USD currency pair. The role of the euro As an investor, you are looking for handles that can tell you something about the euro. In general, the European Central Bank (ECB) is one of the biggest factors when it comes to the euro. Many investors will therefore keep a close eye on the news about the ECB. For example, the ECB regularly makes statements that say something about the future of the euro. The ECB produces a monthly report on interest rates and economic outlook. Investors often use this as a reference when making decisions about their (potential) EUR/USD position(s). In addition, there are many other factors that play a role. The ECB is not all-determining in that sense. Employment figures also play a role, for example, when it comes to the movement of EUR/USD. The role of the dollar The dollar is also subject to a central bank having a great deal of influence on its rate. This is the US Federal Reserve (Fed.). The Fed. publishes relevant figures relating to the US economy eight times a year. Here too, the Fed. is not the be-all and end-all. Other figures and developments will always play an important additional role. How to trade EUR/USD? The easiest way to trade EUR/USD is by using  CFDs . CFDs are leveraged products that are based on an underlying instrument. They are a form of derivatives. This means that you do not have to physically purchase the currency itself. An advantage of CFDs is that you can go both long and short. You can then speculate on both a price increase and a price decrease. In addition,  leverage offers  the opportunity to increase your profits. However, keep in mind that leverage can also increase your losses. CFDs therefore do entail risks. For most Forex investors, the CFD remains an ideal solution.  Would you like to start investing in Forex via CFDs?  Then compare all Forex brokers here . Our reading tips for the novice investor

Blue chip stocks Anyone who has ever traded has come across the term ‘blue chips’ at some point. The term is used to describe shares . Also called blue chip shares . However, most people have absolutely no idea what the term means at that moment. That is why everything you need to know about blue chips is explained below. There are also a number of examples and you can read how you can trade blue chips. The definition of blue chip stocks The first question you want to have answered is what the blue chips are. Unfortunately, there is no clear definition, but in general a blue chip is a share, a share of a large, profitable and established brand or company. These companies have been around for a very long time, are very well known and are often market leaders in their sector. These companies often produce very well-known products or manage well-known brands. Finally, in most cases the companies are active all over the world, they act globally and are therefore multinationals. In short, blue chips are not a special type of stock, but say more about the company itself. The value of the shares is usually very stable and grows rather than shrinks. They also often offer very good and interesting  dividend yields,  which certainly explains their popularity. In contrast to speculative shares, blue chips are not volatile and are profitable.  You will find most blue chip stocks in the most well-known  indices  such as the S&P500, the Dow 30 and the FTSE 100. There is no clear rule for being a blue chip stock. Opinions differ on this and companies change of course. However, usually the blue chips are the companies that are at the head of their sector. This is why you also understand the name, because blue chips are the chips that are worth the most in poker. The term was introduced in the ‘roaring twenties’ in New York in the previous century to indicate which shares were the most successful and reliable, in short, which were worth the most. Which stocks are blue chips: the examples To illustrate the theory, a number of examples of blue chip shares are discussed here. As mentioned, there is no official list of blue chips because there is no clear definition. However, there is a way to see which shares belong to the category because the  major indices  often have blue chip components. Think of the Dow Jones, CAC 40, Euro Stoxx 50 and DAX. The FTSE 100 and the S&P 500 have both blue chip shares and shares of a smaller status. Below we name a number of examples of so-called blue chip shares. You can always discuss this, but these are a number of widely accepted blue chip shares: IBM Johnson & Johnson Coca Cola Apple Pfizer Disney Microsoft Starbucks Nike Verizon Heineken Wal-Mart Why Trade These Stocks? The Pros and Cons There are a number of reasons to trade or not to trade in blue chip stocks. In order to make a good decision, you need to weigh the pros and cons. Some pros and cons are listed below. Advantages When you trade blue chip stocks, you are almost certain that you will make money. The question is how much, but these stocks are so strong and stable that they almost never fall. Investors have a lot of confidence in these companies because they are experienced and simply very large. Disadvantages People who invest in blue chip stocks often trade privately and dare to invest fairly large amounts in the companies. However, these companies are also certainly affected by a crash, for example. Since this leads to panic on the stock exchange, people quickly  sell their shares  and the blue chip shares can fall faster than other shares. Also, large companies can lose their blue chip status due to major changes in the sector. If large oil companies do not adapt in the coming years, they will no longer have a right to exist in the future. Investors who trade in blue chips should pay attention to these kinds of things. Conclusion Investors who invest in blue chips like their  portfolio  to grow slowly but surely. They look at the long term and do not trade based on the day. However, it is important to keep a close eye on the news and see major changes in the market in time. If this is something for you, read below how to trade in blue chips. Trading in blue chips There are several ways you can trade in blue chip shares. You can of course just buy shares, but you can also trade in CFDs, (binary) options and futures. We will go through them below. Buy and then own it for a long time Normally investors buy blue chips to  keep them in their portfolio for a long time . Over this period of time you earn quite a lot of money with this investment. Among others, Warren Buffet has become very rich with this. However, there are of course also disadvantages to this approach as discussed above. Active trading You can also trade more actively in blue chips. You do not buy the blue chip share where you expect to make a nice profit in a few years, but the share where you now know that the price is very low and where you expect the share to rise in the near future. Usually these shares are not very  volatile  so there must be a reason for the low prices. When you see these causes coming and have confidence in the growth of the prices after the dip, then you should buy this share quickly. You will not earn as much with this form of trading as with the more volatile shares, but you certainly run less  risk . This does require a great understanding of the market, because otherwise you will have difficulty estimating the situations. Futures (future contracts) Futures  are

CFD trading on the Nasdaq index For many investors, it hardly needs any explanation that the Nasdaq is one of the most important and prominent indices worldwide. This interesting index, which focuses on technology companies, plays an important role in the American economy. It is therefore not surprising that it is traded a lot on a daily basis. Do you want to know everything about the Nasdaq and are you curious about how you can use a CFD on the Nasdaq index to try  to make a return ? You can read all about it below. What is the Nasdaq? The Nasdaq – also called the Nasdaq 100 – is a stock market index based in America. This stock market index, operated by the National Association of Securities Dealers , focuses on the 100 largest technology companies. These are the (very) big names, such as Apple, Microsoft, Facebook and Amazon. It is important to be aware of the differences between the Nasdaq on the one hand and the Dow Jones 30 and the S&P 500 on the other. Of course, there are many differences to think of. The two most important ones are listed below. The Nasdaq focuses purely on technology companies. The Dow Jones and the S&P 500, for example, also contain companies from the financial services sector. The Nasdaq does not focus solely on American companies. Contrary to what is sometimes thought, the Dow Jones and the S&P 500 are purely American. Contrary to what the name “Nasdaq 100” suggests, the Nasdaq does not have just 100 companies. It currently consists of 103 companies. Goran Vrhovac / Shutterstock.com Why trade the Nasdaq? The Nasdaq is an interesting index to trade. The most modern way of trading is  CFD trading . But what are the advantages of trading the Nasdaq CFD? Going long and short The biggest advantage of CFD trading in the Nasdaq is the fact that you can go both  long  and  short  . What does that mean? When you go long, you speculate on a price increase. This is the most commonly used way of trading and investing worldwide. However, there is a second variant; namely going short. When you go short, you speculate on a price decrease. The possibility of going short exists because with a CFD you   do not actually take possession of the underlying asset . The fact that you can go both long and short is very pleasant. You can respond to both price increases and price decreases. In this way, you can in fact take advantage of every movement in the price. The fact that this is possible brings with it many possibilities. For example, during a recession or a major decline, you do not have to wait for the price to rise again. You can also convert the decline into returns. But when do you go long in the Nasdaq CFD and when do you go short? That depends on the circumstances. In general, the fact is that the Nasdaq is relatively stable and grows along with the American economy. If you want to experience this potential growth, you take out a long position. However, you do not have to wait until a trend occurs to take a long position. Due to the  leverage effect of CFDs,  you can also earn returns with very small increases. Of course, this also works the other way around. For example, do you think a recession is imminent or have you lost your confidence in the Nasdaq? Then you can short the Nasdaq CFD. If the price actually falls, your position will be in the green. As mentioned, CFDs also offer the opportunity to make a profit with smaller price falls. For example, the Nasdaq CFD can show an upward trend on a daily chart, but you can still make a profit with a short position. Be careful, because if the price does the opposite of your bet, negative returns can also occur with small differences. You short by absorbing small fluctuations. After all, a price never rises in 1 straight line.  Even if you choose 1 investment product, there are different trading strategies possible. If you are prepared to take some extra risk to achieve results faster, you could consider scalping and  day trading  . Both strategies have a very active approach. You close and open many positions within a very short period of time, in order to capture all the small fluctuations in the price. A small warning is appropriate here. Many people lose their money by using very active trading strategies. Just as quickly as you can earn money, you can also lose it again. In that sense, the saying  high risk, high reward  applies very well here. If you choose day trading and/or scalping, delve into this thoroughly and in any case only invest with money that you can afford to lose. The above is, by the way, the case with all investments.  Profiting from individual Nasdaq stocks As mentioned, the Nasdaq consists of (approximately) 100 different  stocks . Why is this an advantage? When you trade in the Nasdaq, you are, as it were, taking a position in all these companies. You do not have to decide which individual positions you will or will not open. You simply profit from the overall, composite price development. The fact that you have a whole bag of companies in your portfolio with 1 trade in the Nasdaq has a very big advantage. This advantage should be sought in the corner of sensible investing. The smart investor will always spread his or her risks. When you open a Nasdaq position, you have spread your capital over 100 different companies in one go. If things go a bit worse for a company from the Nasdaq, the other companies will – in most cases – be able to absorb this. This diversification can work very much to your advantage. The above does deserve a small comment. By trading in the Nasdaq you spread your

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Silver Price: Explained Silver is an interesting investment product from various perspectives. This has to do with the silver price , which offers scope for exploiting various opportunities. In some cases, an investment in silver can even yield a higher return than an investment in gold. This has often been proven in the past. If you want to profit optimally from investments in silver, you will need to know which factors influence the silver price and how this happens. Would you like to know all about it? You can read it below. Silver price in perspective Before we start to analyze the price of silver, it is important to understand what silver essentially is. You probably already know that it is a metal from a physical perspective. However, this is more about the economic story. Silver was long seen as the little brother of gold . An investment in silver became interesting when an investment in gold was actually too expensive. When the stock market showed many red figures, investors looked for an investment that could offer some security. Gold and silver then both had the function of a safe haven. Investments were made in the pursuit of a stable portfolio . However, silver is essentially different from gold. This is partly due to the fact that silver is primarily an industrial metal. It is really used in industry to make products, among other things. Figures show that approximately 85% of silver is intended for industrial purposes. When people started to see silver as an alternative to gold, the price started to rise. It was increasingly seen as a (monetary) precious metal. Also read our article about: Is it wise to invest in silver? What is the price of silver? Live silver price If you want to know the price of silver, you will first have to know what exactly you are paying for. A kilo of silver obviously costs more than just a few grams. The silver price is officially expressed in dollars per troy ounce. This is an American unit. A troy ounce is equal to just over 31 grams. It is wise to always check whether the above-mentioned unit is actually used when you look at the silver price. Many sources convert the unit to a more common unit. For example, the silver price is sometimes expressed in whole grams or kilos. Silver price volatility The price of silver is not fixed. If you have a piece of silver in your home, for example a piece of jewelry, the potential sales value of this piece of silver is different every day. The price of silver fluctuates. In addition, it can be said that the price of silver is relatively volatile; especially when you compare it to gold. This means that the price is quite flexible. However, the degree of  volatility is not so high that the price of silver becomes completely unpredictable. This is the case with some cryptocurrencies ,  for example  . Factors That Affect Silver Price Every movement in the silver price comes from somewhere. A price does not just move on its own. Below are a number of factors that influence the silver price. 1. Supply and demand The basis of every price movement is the economic system of supply and demand. This can be seen as a relationship. The more demand in comparison to supply, the higher the price. Of course, this also applies the other way around. It can be said of silver and many other (precious) metals that the supply is low by definition. When demand increases a little, this is immediately very noticeable in the price. When bad weather is coming on the  stock market , you will probably see the silver price rise considerably. After all, investors are looking for more certainty. All factors that influence the price of silver ultimately come down to supply and demand. 2. Gold Price Although the silver industry is fundamentally different from the gold industry, both metals remain related from an economic perspective. Just compare the price chart of silver with that of gold. You will see two charts that are very similar in terms of price movements. In general, the gold price can be seen as the initiator of price movements. If the gold price makes a movement, there is a good chance that the silver price will make a similar movement. Of course, the gold price differs from the silver price, but the price movements are very similar. If you want to invest in silver, it is wise to keep an eye on gold as well. 3. Consumer behavior (micro-economic) In the investment world, it is sometimes forgotten that the silver price is not only influenced by investors, but also by ‘ordinary’ consumers. Silver can not only be bought from a  broker , but also from the jeweler around the corner. The more consumer demand there is for silver, the higher the price will be. Consumer demand is closely linked to economic conditions. The more wealth, the more silver is sold. In times of economic growth, the demand for luxury products is often high. 4. Macroeconomic conditions Macroeconomics says something about the general financial circumstances of a country. Silver is – just like gold – seen as a safe haven. When there is a lot of uncertainty in the market, the silver price will rise. This was seen, for example, in 2008. In that year, the silver price reached record highs due to the onset of the credit crisis. It is remarkable that the price can fall just as quickly as it can rise. When the economy of a country improves, the need for a safe haven is less great. However, people will start buying more luxury products again. 5. The US dollar Basically, the silver price is expressed in the US dollar. This automatically means that the performance of the US dollar has an effect on the silver price. When the dollar weakens, silver becomes cheaper. The result is

What is green investing? Green investing is the order of the day. After all, there is a great deal of social interest in contributing to a better world. Government bodies also see the relevance of green investing. For example, there are various tax benefits that you can enjoy as a Dutch citizen when investing in certain funds . Interesting subject? Read all about it in the article below! Green investing: how do you do that? Investing with a view to a more sustainable world: interesting, but how do you do that? In essence, it is actually very simple. You are investing green when you buy shares in companies that are active in the world of sustainability. You could think of Tesla; a company that is taking relevant steps regarding the production of electric cars. A company that follows this is the Dutch Alfen. This company supplies charging stations. The possibilities are practically endless. Green funds If you are interested in green investing, you can consider investing in so-called green funds . These are funds that use a green strategy. The nice thing? You are not only investing in a sustainable way, but you also enjoy tax benefits. Basically, there are two benefits: a box 3 exemption and a tax credit. It is often thought that green investing yields little return. In practice, however, this does not have to be the case. Fiscal stimulus The government offers tax benefits because they can use this to fiscally stimulate citizens to perform certain actions. Because the government has an eye for a green and sustainable future, green investments are stimulated. This is done by means of a box 3 exemption and a tax credit. The exact conditions and amounts may differ based on your specific circumstances. In addition, the amounts and conditions may be changed. It is therefore wise to consult the website of the Tax Authorities . At the moment, as a single person, you receive a maximum box 3 exemption of €60,429. If you have a fiscal partner, the exemption is doubled to €120,858. In addition, an additional tax credit of 0.7% is calculated on the amount you are entitled to. This is an additional benefit that you benefit from.  List of funds Unfortunately, it is not entirely up to you to determine which funds can be classified as green funds. The Tax Authorities have drawn up a list of funds that qualify for the above-mentioned tax benefits. The list can be found below, although it is recommended to always consult  the Tax Authorities ‘ website for specific and recent information. Read more about  tax on funds . Number (#) Funds 1 ABN AMRO Green Fund and ABN AMRO Groenbank bv 2 ASN Groenbank nv and ASN Groenprojectfonds 3 BNP Paribas Green Fund 4 Eco-housing Fund 5 Fortis Green Fund and Fortis Groenbank bv 6 Green Housing Fund 7 ING Green Bank nv 8 National Green Investment Fund II and III 9 Postbank Groen nv 10 Rabo Green Bank bv 11 Regional Sustainable 1 12 Green Fund Foundation 13 Stichting NOTS RE Investments 14 Triodos Green Fund nv Options without tax benefits Green investing while enjoying tax benefits is of course a nice win-win situation. However, there are also plenty of green investments that do not qualify for tax benefits. This mainly concerns  green ETFs . These are ‘baskets’ of  green shares . Examples of sustainable ETFs are iShares Global Clean Energy UCITS ETF and VANECK SUST WORLD ETF. Getting started with green investing Are you excited about green investing after reading this blog?  Compare brokers  to find brokers with a suitable offer for your needs. Our reading tips for the novice investor

Investing VS Gambling Investing is often compared to gambling in a casino. And to a certain extent, this comparison works. After all, investing is just like gambling; risking your money for the chance of winning. But that is where the comparison ends. Gambling requires a minimum investment of time and as a gambler you have a higher chance of losing. Whereas investing requires more time and generally yields profits in the long run. Investing, what exactly is it? When you invest, you invest money in, for example , shares , with the expectation that this will eventually yield a return . Such as income or an increase in the value of your shares. This is the core of investing. The amount of risk you take usually affects the amount of profit you can make; generally speaking, a stock that carries a lower risk will also carry a lower potential profit. How do investors operate? Investors should always decide for themselves how much money they are willing to risk. Typically, investors risk around 2-5% of their capital per investment. Long-term investors are constantly told about the benefits of diversifying your portfolio across different asset classes, but the risk and potential return of stocks can be different, even within the same asset class. Especially if it is a large asset class, such as stocks. For example, Apple stock will carry a different risk than a tech start-up. Basically, the strategy for risk management in investing is to spread your capital across different asset classes or different assets within the same class. This gives you the best chance of minimizing your potential losses. To improve the performance of their portfolio, some investors study trading patterns by looking at stock charts . Stock market technicians try to use these charts to predict how the stock will perform in the future. This analysis of charts is called technical analysis . Another important factor that affects the return on an investment is how much commission the investor has to pay to a broker. A big difference between investors and gamblers is that a gambler owns nothing. An investor on the other hand owns something: a share in the company he invested in. Sometimes this is even compensated by companies in the form of  stock dividends . Gambling explained Gambling involves betting on an uncertain outcome that is highly dependent on chance. Like investors, gamblers must also carefully determine how much money they are willing to risk. In some card games, you can see this  risk management  directly in front of you: to call a bet, you also have to bet money. This can be compared to how much money is already in the pot. The ratio between these two amounts determines how favorable the chance of winning is and influences how likely it is that you will take action. How do gamblers operate? Professional gamblers are usually very good at risk management. They do a lot of research on the teams, players or horses they bet on. Professional card players research their opponents to see if they can find clues that reveal what kind of cards the player has, and they also remember what the opponents have done in previous rounds. In a casino you play against the casino itself, as it were. While in betting on sports or buying a lottery ticket you play against other players, as it were. The number of players determines the chances of winning. For example, the chances of a horse in a race are determined by how much money has been bet on that horse by all players and this number changes until the race starts. In general, gamblers are at a disadvantage. The chance of losing their original investment is much higher than the chance of winning. The chance of winning is even smaller when the gambler also has to pay money on top of their bet, essentially a gambling commission similar to the commission you pay a broker. Why investing is not gambling In both investing and gambling, it is important to minimize risk and maximize profit. But in gambling, the odds are often against you. And the longer you play, the worse your chances become. While the stock market generally becomes more and more valuable over time. Of course, this does not mean that a gambler can never win the jackpot, or that an investor will always make a profit, but it does mean that over a longer period your chances as an investor improve, while those as a gambler deteriorate. Difference between investing and gambling: Mitigating losses Another big difference between gambling and investing is that with investing you have ways to limit your losses. If you bet €50 on a horse that doesn’t win, that money is simply gone. With traditional betting, there is no way to mitigate your losses, although there are some online gambling sites that do have options to limit your losses. Such as the ability to adjust your bet during the game, or a partial cash-out option that lets you get a percentage of your bet back if the outcome doesn’t look like it’s going to be ideal. Investors have several options to avoid losing their entire invested capital. For example, you have the option to set a  stop loss  on your investment. This means that if your shares reach a certain value (such as 10% below your purchase price) you have the chance to sell your shares and thus still get 90% of your initial investment back. Whereas betting €50 on a team that does not win will cost you all your capital. Difference between investing and gambling: The time Time also plays a big role in the difference between investing and gambling. Gambling has an agreed upon time frame, while investing in a business can take years. With gambling, once the race is over, or the roulette has turned, your chance to make a profit is over. You have either won or lost your bet. Investing in 

What is collective investing? When we talk about collective investing , we are talking about a form of investing in which the investment is made by a number of investors together. An investment fund is a clear example of this. Banks and asset managers also choose to invest collectively. They do this by using model portfolios. Such investment portfolios are composed in advance and the investments of all clients are made in the same way. Individual investing is the counterpart of collective investing. What are the advantages of collective investing? Here we will discuss the various advantages of collective investing: relatively low deposit The minimum deposit for collective investment is considerably lower than for individual investment . Choosing an investment fund or asset manager offers a major advantage for the collective investor. They need reserve less capital for investments, because the deposits of various investors are combined. lower costs A joint investment has the positive effect of creating economies of scale . The individual investor can then count on a reduction in costs, for example transaction costs and management costs. In the world of investments, reducing costs is an important matter, because this is directly related to the final return . more choices Collective investing broadens the possibilities of every investor. Because an investment fund or asset manager has a large capital at its disposal, investments in less common financial products are now also possible. Similar investment products are otherwise only sold for deposits of several million euros. effective asset management By opting for collective investment , you are also implicitly opting for professional management of your order portfolio. After determining your personal risk profile , you hand over control to the asset manager. From now on, you can rely on their expertise and rest assured that your assets are being invested in an expert manner. no own management When entering into collective investments, you outsource the management to a professional player on the investment market . When you enter into a partnership with an asset manager or an investment fund, you no longer have to concern yourself with the investments made. Having money invested offers another attractive advantage, because it saves you a lot of time and effort. What are the disadvantages of collective investing? Like any form of investment, collective investment also has some disadvantages. These disadvantages can be taken into consideration when deciding to invest in collective investment: no say over your investments By outsourcing the management of your assets to someone else, you can no longer have direct influence on the  investment strategy to be chosen . The choices regarding your investments are now made by the asset manager/fund manager. This is of course done on the basis of your personal risk profile, which serves as a guideline for the strategy to be used. no individual adjustment to the investor It is a fact that collective investing is not personally adjusted to each investor. This is of course the case with individual investing. Here, the composition of an order portfolio is determined by your personal preferences and financial situation. This advantage cannot be found with collective investments. Conclusion: collective investing or self-investing? You can choose to have your money invested by investing in a fund or to have your money completely managed by an asset manager. The best choice is different for everyone. Weigh carefully what is preferable for you. Of course, you can also consider a combination. Still not sure what the better choice is for you? Then read our article: ‘ Let invest or invest yourself? ‘ Our reading tips for the novice investor

Investing money in a bank Currently, savings interest rates are very unfavorable and unprecedentedly low. The savings in the bank account yield little return. If you do not need to use your money in the foreseeable future, it is an option to invest your assets. The chance of asset growth is greater here. There are various ways to invest. You can choose to invest yourself or to have it done. In the Netherlands, you can invest with a number of large banks such as ABN AMRO, ING or Rabobank. If you already have an account with one of these banks, you can start investing right away. It is also possible to make investments with a broker such as DEGIRO. In this article we will discuss a number of important questions. What matters should be taken into account when investing through a bank? What differences can we discover with the large investment banks? What are the differences between investing with a bank or a broker? When to choose to invest through a bank? We will list the pros and cons, which will make choosing a bank or broker easier. The large banks, including ING, Rabobank and ABN AMRO, also offer investments. They often have investment funds themselves. This has the advantage that your investment assets are spread. On the other hand, costs are charged for financial management. These banks often provide insight into the research results of various economic sectors and it is possible to delve into the financial markets. The advantages of investing with a bank: All financial matters are held with just one financial institution . The assets are relatively  safe with a bank, as a bank account is insured against bankruptcy of the bank in question up to an amount of €100,000. The ability to get professional financial advice from an investment advisor. The disadvantages of investing with a bank: Banks charge an annual commission on the total amount invested, the so-called custody fee . The additional costs are often higher at a bank than at an online broker. You have to deal with higher transaction costs and then there are the management and service costs. Investing money through a bank or a broker? It is useful to choose an  online broker  or a bank, because then you do not have to start investing yourself. The choice of a bank or a broker is determined by your own preferences. You can be guided by the (expected) size of the investment capital. Do you want to invest regularly? Do you usually take the time to let your capital grow or do you now prefer to act quickly with more risk? The answer to these questions is decisive in the choice of a broker or investment bank. Banks offer a wide range of financial services and products. In addition to money transfers, loans and savings, you can also easily make the step to investments. You can use investment funds managed by the bank. Brokers, on the other hand, focus entirely on investing. They usually do not have funds to invest in themselves. Brokers do offer extensive opportunities to invest in investment funds from various providers. Factors such as convenience, costs and safe investing play an important role in your choice. At your own bank, it is easy to take the step to investing and open an investment account. After all, you are already familiar with them and have a current account. You can also easily walk in for advice, because banks have their own branches that are accessible to their customers. Investing with a bank usually involves higher costs compared to an online broker. The higher costs for entering into transactions and for the service provided, together with the management costs, subsequently result in a lower net return. With an online broker, you spend considerably less money on the total costs. In addition, an online broker offers investors a great deal of freedom and that you can determine things yourself, whereby the possibilities are often more extensive. Which bank is best to choose for investing? There is no clear answer to this question. Personal preferences and wishes play a major role here. By comparing different aspects at various banks, you will gain better insight into this. Think of things like the nature of the investments, costs, service and conditions. In this blog, we will continue with the three largest investment banks in the Netherlands. Investing with ING ING is a financially attractive bank to invest in, given the relatively low costs. The condition for investing is that you must have a current account here. At ING you can participate in 20 different financial markets and enter into transactions in bonds, currencies, investment funds, options and trackers. It is also possible to have your investments managed from €50 per month. There are various risk profiles to choose from. At ING you can already invest for a relatively low amount and there are low service costs. Do you want to know more about investing at ING? Then be sure to read our ING investment review .  Investing with Rabobank Rabobank offers the option to invest yourself or to have your investments managed by asset management. When investing through Rabobank, there are various risk profiles from which the investor can choose, ranging from defensive to offensive. It is possible to have your investments managed by Rabobank from €5000. There are costs associated with both ways of investing. Rabobank is one of the more expensive providers of investment products. Charging fixed service costs is partly the cause of this, you can read this via our Rabobank investment review . You can invest yourself at Rabobank on a user-friendly platform. Here you can use a limited number of advice from stock analysts. For a thorough stock analysis, the possibilities are not that great. You can trade with bonds, shares, options, turbos, trackers and investment funds and also in green investments. Read more about entering into investments at Rabobank? Read the  Rabobank investment review .

Investments in hydrogen ETFs By investing in a hydrogen ETF, you are responding to the global trend of sustainable investments . It is a given that governments worldwide are trying to act CO2-free in the future. This is necessary to combat the problem of global warming. The use of clean energy sources such as hydrogen is seen as part of the solution. With a hydrogen ETF, you can also respond to this trend on the stock exchange. In this blog you can read more about the hydrogen ETF, also called hydrogen ETF. An ETF: what exactly is it? A fund that tracks an index, a bond or a commodity or a combination of products is also called an ETF. An ETF makes it possible to closely track the value of the underlying products. If you want to know more about this type of financial product, it is useful to read our article about ETFs . Hydrogen as an energy source Hydrogen is obtained from water molecules and this is seen as a sustainable energy source. It is a powerful energy source because of its high degree of energy density. It is even used to power airplanes, buses or large ships, while other sustainable sources of energy fall short in this. It is therefore not without reason that it is presented as the green alternative to fossil fuels. Hydrogen gas in free form is almost non-existent on earth and is therefore derived from other substances such as water and natural gas. In order to be able to extract energy from hydrogen in a CO2-neutral way, it is also necessary to produce hydrogen sustainably. The advantage of hydrogen is that it is a good energy carrier. This allows storage of the energy extracted from hydrogen. For example, a surplus of solar energy could be stored in hydrogen and then used in the winter. Why invest in a hydrogen ETF? The trend to invest in sustainable initiatives is taking shape in the form of investments in hydrogen. For a fairly long time, hydrogen has been considered a responsible alternative to traditional fossil fuels. At the beginning of this century, the then reigning American president Clinton talked about ‘the fuel of the future’. The idea at the time was that the next generation would drive cars on hydrogen. We can now conclude that the ideas of that time were not entirely realistic. The fact is that the interest in such ideas that has diminished over time is now being rekindled. The reason for this is the great attention for climate change. Hydrogen is now considered one of the major green energy carriers for the coming period. However, it is true that applications with hydrogen are not yet offered on a large scale. Also in view of the practical side, this application will not be realised without a struggle. Think of matters such as safety and distribution. Diversification with a hydrogen ETF To invest in hydrogen in a safer way, ETFs are a suitable tool. This segment in the energy sector is still developing and therefore subject to change. The market is divided into a number of companies. It is not without risk to invest in the various companies separately, as the hydrogen market is still changing rapidly. The advantage of ETFs here is that risks are spread and that investors benefit from the total growth of the hydrogen market. What about the risks of a hydrogen ETF? We have just read that the hydrogen energy market is still changing rapidly. Obstacles in the field of technology and infrastructure must be taken into account. It is therefore not possible to say with great certainty that the expected growth will also come. In short, it comes down to the fact that investing in hydrogen at an early stage can be a smart way to invest. It is good to choose an investment with risk diversification, as is the case with ETFs. You should be aware that there is always risk. There is still the possibility that hydrogen will not become a sustainable energy source. In that case, the risk of this form of investment is quite high. For example, a scenario is conceivable in which governments will stop investing in hydrogen, which means that this industry no longer has a chance. In addition, it is questionable whether this economy lends itself to a lucrative revenue model. Hydrogen ETF: A Hype To mention another risk: the industry is still in its infancy and is a hype. At the moment, it is assumed that hydrogen will play a significant role in 2050. The potential that is now attributed to hydrogen is already reflected to some extent in the  share price . In general, this is based on hype. You will then notice that the shares are shooting up in price, while these shares will certainly not be able to meet their assigned value in the coming decades. A peak is already being reached and it will take a number of years before a hydrogen ETF can rise above this point again. With this scenario, it means that you will make little or no profit for years. A good remedy to compensate for this is to invest a small amount in hydrogen ETFs on a planned basis, for example every month, and to invest on a larger scale in the event of significant price drops. The Best Hydrogen ETFs to Choose Do you have a special interest in hydrogen or do you think hydrogen ETFs are a good choice for your  investment portfolio ? By investing in ETFs you can certainly better divide your equity portfolio in an efficient way. It is good to know that there are differences between hydrogen ETFs in price, risk, fund size and underlying value. There are hydrogen ETFs that track different indexes or companies. Some of these ETFs pay dividends and other ETFs do not. Below are two reputable and widely traded hydrogen ETFs in 2021: L&G HYDROGEN ECONOMY UCITS ETF USD

Managed investing: how does it work exactly? Everyone would like to know more about investing, but many people do not have enough experience and knowledge to find out exactly. It is not wise to buy shares at random. However, it is wise to do sufficient research. You can probably use someone who can teach you some knowledge about this activity. Managed investing is suitable for you! You can invest any amount and it can be done completely online. In this way, investing has become a lot more accessible. This blog addresses 7 questions regarding managed investing: What exactly does managed investing entail? Who can benefit from managed investing? What types of managed investments are there? What costs should you take into account when investing in managed assets? What are the risks of managed investing? What exactly does managed investing entail? Managed investing is the ideal form of investing for people with little knowledge or no desire/time to deal with investing. You hand over your asset management to experts, called asset managers . These managers try to achieve certain objectives together with you, but you have to make little to no effort yourself, because they make all the choices for you. In an introductory meeting, the asset manager will give an estimate of which profile suits you best: to what extent you have to take certain risks, and how much profit and costs you can expect. This is all included in a specific plan. The asset manager will invest your money in various investments. You will always be kept informed of any changes and the progress of your shares. You can start at any time, and there are also managers where you can start with a low deposit (€100). Who can benefit from managed investing? If you have little time, too little knowledge or no interest in investing at all, then the phenomenon of managed investing is very suitable for you! You do not have to deal with complex matters that can keep you awake at night, such as spreading your investments or monitoring your portfolio . Your asset manager takes all of this off your hands, so it is certainly an easy way to learn the basics of investing. If you like to take matters into your own hands and like to keep up with developments on the market, then you are better off getting started yourself with the help of a broker. But, what reasons can you have to opt for managed investing? You have enough money, but not enough experience or knowledge about investing If you would like to obtain additional information about the risks involved in investing When you have other priorities in your life You prefer experts to invest your money If you are not sure whether you should opt for managed investing or whether you would rather do it yourself, it is wise to read this article: ‘ Investing yourself or having someone else invest? ‘ After reading this you will be able to make an informed decision more easily! What types of managed investments are there? There are various types of managed investments. It is best to make a choice by taking into account your deposit amount and your expectations regarding the service. If you prefer to be in control yourself, you may be better off choosing a mixed fund. If you prefer personal assistance, individual management is the better choice. It is possible to do the contact entirely online. All your wishes and requirements regarding managed investments are taken into account. Below you will find an overview of all forms of managed investments, so that you can make a well-considered decision. No more wrong choices! Mixfonds Deposit amount: no minimum deposit amount required Risk advice: you will not receive any additional advice about risks Type of service: everything is arranged online Description: You can determine your specific profile yourself. The asset manager can then put your choices into practice, with a combination of different types of funds Read more about mixed funds: ‘ What is a mixed fund? ‘ Online management Deposit amount: no minimum deposit amount required Risk advice: you have an online conversation about risk Type of service: this is done online and by telephone Description: All services are provided online. Investing is done using a portfolio with an average risk profile Read more about online management: ‘ Online asset management ‘ Asset management Deposit amount: this form of investment starts at 100,000 euros Risk advice: you will receive individual advice regarding risk Type of service: you will be assigned a personal advisor Description: You will receive an account at a custodian bank, which is controlled by an asset manager. Your portfolio will be fully adapted to your lifestyle Read more about asset management: ‘ What is asset management? ‘ Private banking Deposit amount: this form of investment starts at 500,000 euros Risk advice: you will receive tailor-made risk advice Type of service: you will be assigned an individual advisor Description: This form of investing is suitable for people who have a little more to spend than average. Customers who would like to experiment with investing and have sufficient budget available for this. What are the costs of managed investments? You would like help with managing your assets, but you do not want to spend too much money on it. Every euro you have to use to hire an advisor is less return. It is therefore crucial that you do not incur too many costs. In the past, asset management was only something for the very rich, but now it has become a very accessible activity and everyone can put their money online. Sometimes you can’t see all the costs you’ve made directly on the asset manager’s account. After all, there are also costs hidden in the products themselves and the entire portfolio. It is therefore essential that you have a good overview of all the costs involved in managed investing. Risks in managed investing Investing is actually always accompanied

Real Estate ETF, how does it work? Investing in real estate is extremely popular among investors. Real estate is often called ‘concrete gold’, because in general real estate stands for safety and value retention. Investing by buying houses is a big investment, fortunately as an investor you can also choose more accessible options: you can also invest indirectly in real estate via shares of real estate funds and ETFs. We will discuss the latter in more detail in this blog, because how exactly does investing in real estate ETFs work? What is a real estate ETF? Many Dutch people consider buying a second home, for example by taking the equity out of their first home. Another disadvantage of investing directly in real estate is that this is a considerable amount right away. In addition, this method also provides little diversification. With an ETF you can invest in real estate with small amounts and more diversification. But what exactly is a real estate ETF? A real estate ETF is an index tracker that follows a number of real estate companies. It works the same as all other ETFs, but focuses on the real estate market. Don’t know what an ETF is in general? Then read our article: ‘ What is an ETF? ‘. Investing in real estate ETFs, how does it work? To invest you need an account with a broker . When you have a broker that offers real estate ETFs you can start investing in real estate ETFs. If you have an account with a broker offering real estate trackers, it is important to choose a real estate ETF. There are different types of real estate ETFs. For example, one may focus on office buildings in the EU and another on shopping centres in the United States. As an investor, you have quite a bit of choice. How do you make money with it? Have you chosen an ETF? Then you can add it to your portfolio by purchasing the ETF. You can now earn money from this real estate ETF in two ways: Price gain Dividend payment An ETF has, just like a share, a certain value. That value changes every day. You can make a profit when you sell the ETF for a higher price than the purchase price. In general, if the economy is doing well, the value increases. Of course, the value can also fall; if you sell the ETF for a lower value, you will therefore incur a loss in value. Dividends for an ETF differ per ETF. With an ETF, you are actually buying a number of shares within that ETF. For these shares, you can receive a profit distribution. This is entirely passive. The downside: what are the risks?  Although real estate is seen as a valuable asset and ‘concrete gold’, it carries risks just like all other forms of investment. There are ways to avoid risks. For example, you can look at the  ESG score for a real estate ETF . This can give an indication of the future-proofness of an ETF. In addition, you look at other factors for an ETF. For example, you look at the return, the size of the ETF or the region. Risk and return often go hand in hand. The higher the return, the higher the risk. A larger ETF means more diversification and less  concentration risk . The real estate ETF has everything to do with the housing market. If the housing market is healthy, your ETFs will do well. If the housing market falls, your ETF will follow this development. Real Estate ETF Benefits The real estate ETF has a number of advantages, such as: The high degree of diversification. You can invest in multiple sectors of real estate or in different regions with a real estate ETF. Receiving dividends. Real estate ETFs often have a high dividend yield. Low entry level. There is no need for a large investment, which is required for a direct investment in real estate. For example, you can buy a real estate ETF for around €50 per share. High liquidity. An ETF is traded on the stock exchange, so you can sell your real estate ETF more easily and quickly. Our reading tips for the novice investor

Investing in oil with futures Due to the importance of oil as an energy source, oil futures cannot be underestimated. Currently, there is no energy source that can provide more energy per unit of extraction costs than oil, despite the serious search for alternative energy sources. For the time being, our cars will continue to run on (mainly) oil for a while, possibly in combination with electricity, such as the hybrid vehicles that are becoming increasingly popular. There are still abundant oil reserves, so there is no shortage on the oil market. Day traders are always looking for volatility. If there is one thing that has been moving in recent years, it is the oil market. These movements offer opportunities and arouse the interest of many traders to invest in oil . However, it is not that easy to invest in oil. There are many different ways to invest in oil. The most direct, besides storing oil barrels in the shed, is to invest in an oil future. Oil Futures: What Are They? To understand what oil futures are, it is important to understand what the futures trading product entails. Read our article: ‘ What is a futures contract? ‘. Oil futures are contracts in which you agree to exchange a predetermined amount of oil on a certain date at a fixed price. These futures are traded on futures exchanges and are usually used to buy and sell oil. When the value of oil rises or falls, the price of the oil futures moves with it. Companies use futures to fix a favorable price for oil and in this way hedge against unfavorable price movements. However, this trading product is also popular among speculative traders. After all, no physical barrels of oil need to be delivered. The contract must be fulfilled. This can be done via a cash settlement. Speculating on fluctuations in the oil price Oil will probably remain the most widely used energy source on earth for some time. Oil is traded on designated markets. Both crude oil and all kinds of processed oil products can be traded there. Can you as an investor make money by trading in oil? You certainly can. A good way to speculate on oil prices is to invest in oil futures. Because the oil market is a very speculative market, we speak of speculation rather than investment. Unexpected price results are the rule rather than the exception when you invest in oil. Buy oil futures There are several oil futures that you can buy. The most well-known is the Light Sweet Crude Oil future (ticker: CL) . This is based on West Texas Intermediate (WTI). Anyone who wants to invest in this future will need a fat wallet because one point in the CL is equal to 1000 dollars. Another popular oil future is the Brent Crude Oil future (ticker: BZ) . This future is based on Brent oil and just like the Crude Oil future, the multiplier is 1000 dollars. Both futures are based on a different variant of oil, which means that the value development is slightly different. Of course, the prices generally move in the same direction. Risks of trading oil futures Oil contracts are traded regularly on regulated markets. For traders, it is therefore easy to respond to trends in the oil price. Speculators try to profit from the movements. Be careful! There are numerous variable factors that ultimately determine the price of oil, both expected and unexpected. The risk is that speculators may suffer large losses with trading in oil futures. How do oil futures contracts work? The basic principle of futures contracts in general is simple and is based on supply and demand. This is also the case on the oil markets. The buyers of a contract go ‘long in oil’ and hope for profit through an increase in the oil price. The sellers of a contract, on the other hand, go ‘short in oil’ and hope for a decrease in the oil price. In addition to these two parties, there are also other factors that play a role in practice, including the oil producers who use oil futures to hedge against unexpected price movements on the oil market. Oil futures in practice Buyers and sellers of oil futures set a price based on supply and demand. This is not the price at which oil is trading today, but at a specific date in the future. For example, suppose a barrel of oil is currently priced at $40 per barrel, and the buyer of the oil futures expects that price to rise to $45 for a contract expiring in June. If this price target is reached, the buyer hopes to make a profit. Yet another speculator expects the price in June to be much lower than 40 dollars and has a price target of 35 dollars in mind. This party sells futures in the expectation of buying them in June at a lower price. If the buyer is right and the oil price rises to 45 dollars, the investor realizes a profit of 5 dollars per contract in June. He had bought the oil futures for 40 dollars. In this example, the person who sold oil futures suffers a loss, because he will have to buy more expensive than what they were sold for. To trade oil futures it is essential that you have a good vision of the market. This can be done by keeping a close eye on it. You can also choose to trade purely on price movements. Many investors choose to use a trend following system. When the price is in an upward trend, you receive a buy signal. When the trend is downward, you receive sell signals. Our reading tips for the novice investor

What is the best way to invest in gold ETFs? Gold has been seen as a valuable precious metal for centuries. But investors also see gold as interesting. For example, the gold price has risen steadily in recent years and gold is seen as a ‘safe haven’. Perhaps you would also like to invest in gold , but you do not know where to start. Many people do not want to buy physical gold because of the disadvantages: storage and insurance. One way to still profit from the raw material without having it physically in possession is via a gold ETF . In this article you can read more about the gold ETF. What is a gold ETF? An ETF is a so-called Exchange Traded Fund . This allows you to invest in broader groups of companies, for example based on geography or market sector. An ETF can focus specifically on a country such as China, or the underlying value of a commodity, such as oil, coffee and of course gold. But why would you want to invest in gold? The reasoning behind this is quite simple. Many investors see gold as a stable and stable investment. Especially in times of recession, when the stock markets are under pressure, gold is something that actually increases in value. Even with high inflation, an investor can protect his assets by investing in gold, silver, platinum or other precious metals. Read more about investing during inflation . The advantage of an ETF is that you can invest in a gold market without purchasing the physical material itself. An ETF follows the price of gold. They do this by investing in a broad basket of companies that are active in the gold sector. You can simply buy an ETF through a bank with an investment platform or an online broker. Just like ”normal” shares, ETFs can be traded. You then own a piece of the fund. Only this fund follows the underlying value of gold. Via CompareAllBrokers.com you can compare online brokers with each other and see who offers the best conditions for investing in gold ETFs. What to look for in gold ETFs? Those who would like to invest in gold ETFs should take a few things into account. Below you can read the most important ones. Underlying value of the ETF An Exchange Traded Fund invests in a basket of companies. In the case of a gold ETF, these could be companies that mine gold, trade precious metals such as gold, or invest specifically in the physical material or track gold futures. These are all different ways to track the gold price, and therefore also have different performances. For example, the price of companies that mine gold is not only dependent on the price of gold itself, but also on fuel and labor costs. Take this into account when choosing and decide for yourself what you would most like to invest in. Size matters In the case of an ETF, the size of the fund is indeed important. An advantage of a large fund is that the costs are usually lower. Because they have a larger asset under management, these ETFs also have a higher liquidity, and the difference in the purchase and sale price is also smaller. The traded volume is therefore often larger, which is nice if you want to sell your ETF again. Leverage ETFs come in all shapes and sizes. Most ETFs only try to track an index as closely as possible. For example, gold. If the index rises by 10 percent, the ETF wants to rise 10 percent. However, some ETFs use so-called leverage. These ETFs are also called ”leveraged ETFs” and do not only want to track the index, but also achieve twice or even three times the return of the underlying value. However, this is only possible by using debt and/or  financial derivatives , and the risk is correspondingly higher. You can indeed make a significant profit with an ETF with leverage. But beware: the same applies to a loss. Then your investment will deteriorate two or three times as fast. Currency differences You may have seen it on a stock exchange or online broker: some shares and ETFs are traded in euros and dollars, others in British pounds or Danish kroner. The price of physical gold is usually expressed in dollars, which makes the dollar exchange rate important, especially if your ETF is expressed in euros or British pounds. Currency differences can therefore also affect the return of an ETF. The currency in which an ETF is expressed can also be important in terms of regulations. To use a simple example: the Turkish currency is currently worth very little, as is the Russian Ruble. However, if you as a company trade in these currencies, buying gold is very expensive, because the exchange rate of your currency is very low against the dollar. The same can apply to euros or British pounds. This can cause  currency risk when investing . Why should you invest in gold ETFs? Investing in gold is probably the oldest investment strategy in the world. But why? A safe investment Our current currencies are based on trust. A euro coin or a 10 dollar note has no intrinsic value. We pay an amount for it because we trust that we can buy something with it, but the material itself is worthless. This is not the case with gold. Here the value of the gold coin or bar is directly linked to the material it is made of. In times of crisis, this is an attractive feature. Gold is less affected by inflation. People therefore often invest in gold to protect the value of their assets. When the economy improves after a while, they can convert it back into “normal” currency. This way, you can weather the fierce storms that sometimes rage on the stock market. Supply and demand Another advantage of gold is the structurally high demand. Because central banks

Vanguard S&P500 ETF ETFs are increasingly seen as an important part of an investment portfolio. They also come in many different types. A large portion of investors choose to invest in the Vanguard S&P500 ETF . What is the Vanguard S&P500 ETF? What conditions must a company meet to participate in the S&P 500 and which companies are actually included? What is the return, the costs and is there a dividend paid? You can read all about it in this blog about the S&P 500 ETF from Vanguard. Vanguard S&P500 ETF: What’s Got? The Vanguard S&P500 ETF is an Exchange Traded Fund that consists of the 500 largest American companies. This ETF also represents a large number of sectors, which also gives a good picture of how the American economy is doing. There is a lot of investment in this ETF worldwide, which gives a significant boost to liquidity . When an ETF has low liquidity, it can deviate from the index more quickly. Because the S&P500 ETF from Vanguard does not have this problem, it is also very accurate. Conditions for inclusion in S&P 500 To be included in the S&P 500, a company must meet a number of requirements. Some of these requirements are listed below: Only American companies can become part of the S&P 500; The company’s market capitalization must be greater than $4,000,000,000; The market capitalization – annual traded volume ratio must be at least 1; There must be a minimum volume of shares traded per month of 250,000; The company must make a profit for at least four consecutive quarters. Which companies make up the Vanguard S&P500 ETF? By now you know that the S&P 500 consists of the 500 largest companies in America. You yourself can probably name a number of companies that are part of the S&P 500. An interesting fact is that Vanguard’s S&P 500 ETF consists of many different sectors. In addition to the big tech companies Amazon, Apple, Google (now under the name Alphabet) and Facebook, there are also companies from other sectors. The S&P 500 consists of a combination of 90 different sectors. The largest representatives are: The technology industry: 22% The healthcare industry: 16% Financial services: 14% 500 companies in an index is a lot. Here are some examples of companies included in the S&P 500: Pfizer Inc Coca-cola Netflix Walt Disney Co  McDonalds Mastercard The list changes annually, as the 500 largest companies in America are redefined each year. Vanguard S&P500 ETF Performance Since its inception, Vanguard’s S&P 500 ETF has averaged 10% annual returns. The table below provides a breakdown of the annual returns: Year Yield (%) 2021 28,3% 2020 18,0% 2019 31,0% 2018 -4,8% 2017 21,4% Vanguard S&P500 ETF Costs At the moment, the Vanguard S&P500 ETF costs 0.07%. These are the costs that must be paid on the total value of your investment. Compared to other ETFs, the costs of the Vanguard S&P 500 ETF are very low. The reason for this is that Vanguard does not aim to make a profit. The ETF  is also part of the DEGIRO core selection .  Dividend van Vanguard S&P500 ETF Vanguard’s S&P 500 ETF pays out dividends in the form of cash. They pay them out quarterly. The dividend yield is about 1.8% per year, but what is actually paid out varies per year, since dividends have to come from companies. For example, when a crisis breaks out, companies will pay out less dividend. The table below shows the dividends of the past years. Year Dividend (per share) 2021 €0,82 2020 €0,82 2019 €0,80 2018 €0,72 2017 €0,69 Pros and Cons of Vanguard S&P500 ETF We have now compiled a lot of information for you. But what are the specific advantages and disadvantages of the Vanguard S&P500 ETF? The benefits One of the advantages of this ETF is that it consists of the 500 largest companies in America. Suppose one of these companies has a bad result, the other 499 companies will compensate for this. The chance that the ETF will do badly is therefore small. You therefore take a reduced risk and have a good diversification. It is therefore possible to expand your portfolio with more risky investments, because you can always fall back on the Vanguard S&P500 ETF. The disadvantages If you want to book high profits in the short term, then the S&P 500 ETF from Vanguard is not the right investment for this. Because of the reduced risk, the chance of high profits is also smaller. Another disadvantage has to do with the fact that you invest in 500 different companies at once. Suppose you want to invest mainly in sustainable companies, then the Vanguard S&P500 ETF is not suitable for this. Sustainability is not taken into account, which means that it is quite possible that you also invest in companies that still make extensive use of fossil fuels, for example. Andere S&P500 ETF’s In addition to the Vanguard S&P500 ETF, there are also other ETFs that track the S&P 500 index. Some alternatives are the following: iShares Core S&P 500 ETF SPDR S&P 500 UCITS ETF Invesco S&P 500 UCITS ETF It is also possible to invest in the Vanguard S&P500 ETF in a different way. For example, you could use leverage . Be careful if you specifically want to invest in the S&P 500 ETF from Vanguard: they are offered in different forms. For example, certain brokers offer the Vanguard S&P500 Growth ETF and the Vanguard S&P500 Value ETF. These have a different approach than the normal ETF from Vanguard and therefore also more risk. So check carefully whether you buy the right one! Conclusion In this blog we talked about the Vanguard S&P500 ETF. With a high average return and a good diversification, this ETF is seen as an excellent investment. The low costs also make it a very attractive investment. Want to invest in the Vanguard S&P500 ETF yourself? 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DEGIRO Core selection ETFs In this blog we will take you through everything you need to know about the DEGIRO core selection, and how you can apply it as an investor when buying or selling ETFs. DEGIRO core selection: what is it? When trading in ETFs, the investor generally pays transaction costs. However, there is a list: the DEGIRO core selection. This is a list of ETFs for which the investor does not have to pay transaction costs. In addition to being very clear, it also has advantages for the user: a considerable return can be achieved. This is because the transaction costs often consist of an investment percentage and a fixed amount. In which case do I, as an investor, NOT pay any costs on an ETF? You might think that there is a catch, that you do not have to pay transaction costs on this list. Although it is really that simple, there are a few conditions, which you as an investor must adhere to: There is no unlimited use of the DEGIRO core selection. This means that you can buy ETFs from this list once a month (not every 30/31 days). Suppose you buy an ETF on May 31, then you can do this again on June 1. This applies per ISIN code, which means that if you buy 2 different funds that are both in the core selection, you do not pay any transaction costs. The free purchase does not apply to all exchanges, but to a certain selection: Euronext Amsterdam, London Stock Exchange, Borsa Italiana, Xetra, Bolsa de Madrid and Euronext Paris. For investors from the Netherlands it is nice to know that these all have the euro as currency. As an investor, you can buy an ETF twice a month with a purchase value of + €1000,-. This also applies to the sale of an ETF. An important tip: pay attention to the combined exchanges and ISIN codes! The VWRL is bought and sold as an ETF on various exchanges. The list that is in the core selection next to the Euronext Amsterdam are the only ones that belong to it. Exchanges such as the SWX (Switzerland), LSE (London) and the MIL (Milan) also trade this fund, but as an investor you do pay the transaction costs there. That is why it is good to take this into account when investing, to avoid surprises. 5 tips for ETFs within the DEGIRO core selection Below you will find five ETFs that can be found in the DEGIRO core selection. 1. VWRL – Vanguard FTSE All World Eur The VWRL, or The Vanguard FTSE All-World UCITS ETF is a fund in which 3500 different companies are spread across the world. This automatically also ensures a better spread in your wallet. If you as an investor want global diversification in the economy, the VWRL could be a good choice in DEGIRO core selection. 2. VanEck Semiconductor ETF A global topic of conversation is Semiconductors. With an ETF, investors have exposure to multiple things, while shares are often expensive on their own. This ETF tracks as accurately as possible, the maximum weight of one fund is limited to 10% (ASML is also present within this ETF). 3. iShares Electric Vehicles and Driving Tech ETF In this ETF there are approximately 130 positions from the technology and automotive industry. If you are interested in this sector as an investor, it can certainly be wise to delve into what it has to offer, and how you can get started with it as an investor. 4. L&G Cyber Security UCITS ETF Cyber ​​security is increasingly emerging as a sector. This is mainly because a lot of life and work is done via the internet. Because this does not always appear to be safe, there are now more than enough companies that have specialized in cyber security, so that internet users can surf the internet without worries (also investors). If you find this ETF interesting and would choose it, then you are an investor in this type of company. A big advantage is that diversification is present, and there is a great future in this sector. 5. VanEck Vectors VideoGaming UCITS ETF USD A eSports and gaming are now an indispensable part of our world, including that of investing. E-sports also offer interesting opportunities as an investment. As an investor, it is therefore advisable to take a look at how you could invest in technology, stadiums, game centers and sponsors. Conclusion DEGIRO core selection therefore offers many possibilities in the field of ETFs, which also require further research if you as an investor are considering taking it seriously. For a complete overview of the more than 200 index funds, it is advisable to read the entire list. Although investing via this list is a good option for many, and you have the chance to save on transaction costs, it is true that it still involves investments. So that you have chosen the right fund within the right stock exchange, for example, and that you also adhere to the conditions of DEGIRO. This ensures that fewer unnecessary risks are taken, and that you are also responsible with ETFs. If you as an investor find it difficult to start in the list, it is also wise to read up on the pros and cons and also take small steps in this. This way you invest safely and responsibly. Our reading tips for the novice investor

Investing in wind energy: How do you do this? If you have savings in your bank account that you do not want to use for a long time, investing in wind energy may be an interesting alternative for you. Not only because of the potentially higher return that you achieve in this way, but also with a view to a better environment. By investing in wind energy, you are ultimately actively contributing to this. In this way, you also ensure that we become less dependent on fossil fuels and on supply countries with which we are not always good friends. If you choose to invest in wind energy in your own country, you are also immediately helping to make the Netherlands more energy-independent. Invest directly in wind energy In contrast to many other forms of investment, investing in wind energy is in many cases a concrete, tangible investment. You invest your money in the purchase and maintenance of a real windmill or a wind farm. It is therefore something that you can simply see in the Dutch landscape. You do not need to have a large amount of money to become a co-owner of a windmill or wind farm. You can usually participate in such a wind project for a relatively small amount, which makes the threshold for investing attractively low. An additional advantage of this way of investing is that you do not need to open a separate investment account with a bank or online broker. Investing in wind energy via the stock exchange If you want to invest in wind energy through an investment account, that is of course also possible. There are several listed companies that are involved in the direct or indirect production of wind energy. You can buy and sell shares in these companies . The return to be achieved in that case depends on the financial results of the company and the share price on the stock exchange . The result can also be negative if the company makes losses during the year. In addition to achieving a price gain or loss, you can also expect periodic dividend payments if the company has positive company results. A disadvantage of this form of investment is that it can be quite difficult to find a listed energy company that is really fully involved in the production of green energy. For most energy suppliers that are listed on the stock exchange, wind energy is only one of the energy sources in their total mix. This mix can then also consist of power generation from coal and/or nuclear energy, for example. Investing in wind energy bonds A third option for investors to achieve returns with wind energy is to purchase bonds from a wind turbine or a wind farm. In that case, it basically means that you lend money to the initiator of the wind project for a predetermined period and that you receive a fixed return for this – for example annually. At the end of the term of the bond, you will (if all goes well) simply get your loaned money back. Investing in wind energy in practice A good example of investing purely in wind energy is the Danish company Vestas. This company specializes in the construction of wind turbines and issues shares that can be traded on the stock exchange. In order to use this investment opportunity, you must have an investment account with a bank or an online broker. If you do not have such an account yet, you can open one yourself quite easily. Compare all brokers using our tool. Opened an account? After opening, transfer the money you want to use for investment purposes to this new account and then buy the desired shares with it. If the company results of – in this case – Vestas are good, you can count on the share price to rise and you will make a profit. In the event of positive company results, the company can also decide to pay dividends to its shareholders. This is an additional compensation on top of any price gains you make in a certain period. The advantage of shares in listed companies is that you can easily keep an eye on their price via all kinds of different investment websites. In addition, investing with the help of an investment account has the advantage that you can buy additional shares fairly quickly if you expect the price to rise. Selling shares is also easy and quick via an investment account. The expected return In general, the return that you can achieve by investing in wind energy is relatively high. Of course, the level does depend on all kinds of different financial factors. The general stock market climate is one of them. If the stock market is doing badly and the value of the shares decreases in general, this will most likely also have a negative effect on your wind energy shares. You will encounter these types of value fluctuations less quickly if you invest your money directly in a wind turbine or wind farm. With this latter option, you can make a fairly good estimate of the expected return in advance. On the other hand, this relatively safe form of investing will probably ultimately yield you less profit. The risk of investing in wind energy In our daily lives, energy is a familiar factor. Without electricity, the world around us comes to a standstill. In addition, energy generation from ‘green’, environmentally friendly sources is very popular today. This makes the risk of investing in wind energy relatively low. You run the most risks when you buy and sell shares in wind energy companies on the stock exchange. This is partly because when trading shares, you are dependent on the general stock market climate. If that is positive, then there is also a reasonable chance that your own wind energy shares will increase in value. In a negative stock market climate, on the other hand, you must take