Dec 15, 2021 etc
With low interest rates and a tight property market, Kiwis are finding their investment opportunities on global markets.
Online trading has exploded in recent times. Fuelled by the rise of the retail investor, everyday people have turned to markets to capitalise on financial opportunities created by the pandemic, including increased market volatility and low interest rates.
The stock market offers Kiwis alternative ways to build wealth. With low interest rates dampening returns on savings accounts, and a hot housing market out of reach for some, investors are exploring other strategies.
Trading can be a faster way of achieving investment goals like saving for a home deposit. According to Goldman Sachs, the average 10-year stock market return is 9.2% while annual percentage returns on high-yield savings accounts in New Zealand have recently been hovering around only 0.5-1.25%.
Investing in real estate, without owning property
Everyday Kiwis can gain exposure to the benefits of owning real estate, such as income, without having to be a landlord through the stock market.
Investing in property requires a lot of capital and can often lead to more headaches than returns with the added risks of buying in a bad location or ending up with problematic tenants. If investors borrow too much and it turns sour, they can also end up with negative equity and ongoing debt.
Other options available through the stock market: real estate investments trusts (REITs), real estate ex- change-traded funds (ETFs) and property shares, can give traders exposure to real estate, without having to purchase the physical assets. Unlike owning property, investing in real estate via the stock market, can easily cater to a diversified portfolio, therefore mitigating the risk of putting all your eggs in one basket.
Global online trading company, CMC Markets, offers a range of property stocks and real estate ETFs on its platform to trade on. It has experienced the upswing in trading first-hand, with an influx of new traders seeking financial opportunity with less start-up capital and more flexibility.
Trading with trust and confidence
CMC Markets has been helping Kiwis trade on financial markets for over 15 years. It supports both beginners and experienced traders with education, and pioneering tools and technologies to enhance their trading experience.
When it launched in London over 30 years ago, its goal was to make financial markets accessible to everyone – an ethos still at the heart of the business around the world and here in New Zealand.
Today, the company supports over 1 million traders globally with an award-winning trading platform and over 10,000 products. Traders have access to a diverse range of financial instruments, including forex, indices, commodities such as oil and gold, shares and ex- change traded funds, cryptocurrencies, and treasuries – all in their back pocket.
Chris Smith, General Manager of CMC Markets New Zealand, says the organisation has been tech-led from the onset.
“Whether you’re a seasoned pro or a new investor, our focus is on delivering the best trading experience. That’s why we’ve created dedicated resources and tools to help traders develop skills and protect them from risk. Tools including volume on chart and client sentiment, give our clients an understanding of where other traders are investing and what direction our top clients are trading.”
“We also constantly make improvements where we can, like extending our product offering to cryptocurrencies and crypto indices to cater for trendy traders.”
Smart tips for seamless trading
While growing interest and engagement in the financial markets is a positive shift, Smith adds that investors, new or experienced, still need to be mindful of the risks of trading.
“Before you make any trade or investment, you need to do your homework. You wouldn’t buy an investment property without first researching the location, its features or history. The same strategy applies to investing. Knowing what level of financial risk you’re comfortable with, and trading without emotion are important considerations.”
“We provide a range of educational resources, and risk-free demonstration accounts, so potential investors can educate themselves before committing. Traders with CMC Markets also receive in-depth insights and regular international market analysis from some of the world’s top trading professionals to help them build an effective trading strategy.”
Licensed by the Financial Markets Authority, CMC Markets NZ is the only global CFD provider with a local office presence in New Zealand.
Low interest rates and competitive property mar- ket are pushing many potential investors out of the market, but luckily there are alternative ways to invest. From property stocks to real estate ETFs, Kiwis can get their slice of property in the global markets.
Visit www.cmcmarkets.com to trade on the platform trusted by 1 million traders.