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What are platforms for investing? Types and how to choose

What are platforms for investing? Types and how to choose

What are platforms for investing? Types and how to choose

Investing has become more accessible; to receive passive income, it is enough to register on the investing platform. Choosing a suitable site for investing in loans can be no less important than investing itself. Of course, it is easy to succumb to the temptation to start work on the marketplace that offers loans with the highest profitability. Still, it is wiser to conduct a comprehensive assessment of the platform as your potential business partner, with whom you may have to go through fire and water. 

What are the criteria for choosing an investing platform? This article will reveal the main aspects to consider before considering your money at risk.

What are investment platforms?

An investment platform is a web-based tool that allows you to buy and sell assets in the financial markets 24 hours a day. The Lonvest platform can be an example of such a service — a young platform, but it is developing dynamically.

Each of the borrowers admitted to the investment platform receives a credit rating. The platform thoroughly vets everyone, and grants access only to the most reliable of them. The rating is calculated by an automated scoring system based on the analysis of the borrower's data. The higher the rating of the borrower, the safer the investment!

How to choose an investment platform?

1. Research the broker the instrument belongs to. The more reliable the company, the greater the guarantee that transactions will run smoothly and on time.

2. Check spreads and account management and transaction fees. The lower they are, the better.

3. A good investing marketplace should give you access to all financial instruments and as many markets as possible.

4. A professional investment platform should provide the opportunity to use demo accounts.

5. Pay attention to the interface — how clear, intuitive, and easy to use it is and, most importantly, whether it has a version in a language you understand.

6. Check investment marketplace configuration options as well as their functionality.

7. Ask if the broker offering a particular investment platform provides free training for clients.

What investments can I buy on an investment platform?

Some platforms only offer mutual funds. But many others also offer access to cryptocurrency investments, exchange-traded investments such as stocks, investment trusts, and exchange-traded funds, as well as bonds and other investments. Make sure you know what's on offer before opening an account.

Pros & Cons of investing through a platform

Advantages you can get with platforms:

  • The ability to start investing with small amounts: often $20 is enough to start investing in such applications;

  • Learning Opportunity: often, in these applications, you will be allowed to copy the trades of experienced traders or take a specialized course before you start investing;

  • Investment insurance: sometimes, on platforms, you can ensure your investment so as not to lose money;

But there are also disadvantages of investment marketplace:

  • Risks: Although the Internet offers more financial information, the accuracy and reliability of the information cannot be guaranteed;

  • Privacy: Potential privacy issues include, among other issues, leakage of personal information and unauthorized/misuse of customer information;

  • Security: Beware of hackers trying to crack firewalls, passwords, and other security measures to compromise your account.

How safe are investment platforms?

Online platforms are convenient and fast, but this does not diminish the importance of sound judgment when making investment decisions.

When investing online, the lack of interaction with a dealer or financial advisor (who can provide explanations or clarifications) may mean that investors may not fully understand the nature and risks of the products. In addition, market manipulators can spread rumors and false statements on these marketplaces to manipulate share prices and potentially commit other crimes. Fraudsters can also use these platforms to promote fraudulent investment schemes.

At Lonvest, we check each originator company personally, and because we are involved in their activities daily, we are responsible for each company.

How much does it cost to use an investment platform?

All investment providers charge a fee for using their investment platform. Such may be additional commissions that are very common on marketplaces:

  • The commission is calculated daily and charged twice a year.

  • The annual fee enables us to provide a secure platform for transactions and investment arrangements and to assist you with Investment Center hotline.

With Lonvest, you can withdraw your investment at any time for a small fee. You don't have to worry about us because we don't charge investors any hidden fees for money transactions. You can withdraw funds at any time and not worry about hidden fees.

Fees in Investment platforms 

When investing through an investment platform, you should consider not only the commitment shown by the fund manager because there may also be:

  • Interest commissions. This is a percentage of the value of your investment. Many marketplaces reduce this fee as your portfolio grows.

  • Fixed fees. Some brokers charge a fixed annual fee in pounds and pence.

  • Exit fee. You may be charged if you transfer investments from one platform to another.

  • And there are also Isa fees, currency exchange fees, and phone transaction fees.

Which is the best investment platform?

Almost every investment platform has loyal users, but unlike the look and feel, not all platforms are well-designed. For some investors, the most important thing is intuitiveness and ease of submitting orders; for others (primarily professional investors) — complex, advanced marketplaces that offer a wide range of options for technical analysis. There is no specific reason clients should prefer one platform over the other, so your best bet is to check out a few options and choose a broker that will allow you to trade in various ways.

Why choose Lonvest? High returns, 24/7 access, zero commissions, and a proven track record set us apart from the competition. Therefore, by choosing this platform for investing, you will not lose!

Investment platforms FAQs

Can you invest in a platform with a small amount of money?

So! Nowadays, investing platforms offer pleasant solutions even for beginners who are not ready to invest large sums but start small.

Do I have to pay for an investment platform?

Most platforms charge a percentage fee based on your invested amount, but others charge a flat fee regardless of the amount you've saved.

Is it expensive to use the platform for investments?

As stated above, each investing platform is subject to different fees and charges. Therefore, the smaller your trading portfolio, the more you need to focus on expenses.

Lonvest is a P2P investment platform where investors can earn up to 15% interest based on country and loan originator. We cater to various preferences, offering short-term and middle-term investments with compelling passive income.
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