The world of investments is rapidly changing.
In the past, the only way you could buy, sell and trade your investments was to call up your broker and make an appointment. Plus, you’d have to pay them a fee in order to make the transaction. The world of trading was complex and impenetrable for the average user, which made it quite intimidating. However, thanks to investment platforms it is easier than ever before to buy, sell and trade.
Investment platforms are a smart tool for the DIY investor. They are a way to make quick sales online and use technology to keep all your investments together and in one place.
What exactly are investment platforms and how do they work?
Let’s take a look at these platforms and the advantages they offer the investor.
How Do Investment Platforms Work?
An investment platform allows you to buy and sell shares and funds - and sometimes even trade them with others. You don’t need a stockbroker to buy shares on the platform - all you have to do is choose the amount you wish to purchase and buy online. You can also sell your investments through the platform whenever you choose.
You will be able to see all of your assets in one place on a dashboard, so you can review their value at a glance and make smart decisions. You’ll be able to buy and sell your investments on your computer and smartphone, from anywhere in the world.
This is different from the traditional experience of using a stockbroker, as the investor makes the decisions themselves rather than trusting the input and advice of the stockbroker. These types of platforms are often used to buy and sell shares, but they can also be used to trade other assets such as exchange traded funds and mutual funds.
When it comes to buying and selling shares on a platform, the prices will be live - so you’ll know exactly what the price is if you want to sell. You can also usually set up tools such as limit orders and stop-loss orders, so you can set the price you’d like to buy or sell your particular shares at.
The Advantages of Using Investment Platforms
What are some of the perks of using an investment platform?
The platform is convenient - you can buy and sell your investments right from the comfort of your home.
These platforms can make it easy for new investors who don’t have a lot of experience with investing. Everything is straightforward and easy to understand - designed to be as user-friendly as possible.
It will generally be cheaper to use an investment platform than to work with an investment broker (who often charge significant fees.)
Often the threshold to entry is low. With many investment platforms, you will be able to start investing with only a small amount of money.
You’ll have much more control and flexibility over your stocks and you can execute a trade almost immediately.
You’ll be able to monitor your investments in real time, with stock market news, real-time quotes and more.
Most platforms will have an easy to navigate dashboard with a visual portfolio that will help you to see exactly how your dollars break down into each of your investments.
You’ll avoid “brokerage bias,” which is when your broker gives you advice that benefits them but isn’t necessarily the best advice for you.
Many platforms will allow you to hold your investments within a tax-efficient structure, which can save you a significant amount of money.
These are just a few of the advantages of these types of investment platforms.
There is some concern that they make the investment “too easy” and can make it more likely for beginner investors to invest too much without knowing what they are doing. However, as long as you are doing your research and making smart investment decisions, these platforms offer a lot of ease and convenience.
What Makes The Partbnb Investment Platform Different?
Partbnb is an investment platform that is unlike many others out there. Unlike the other apps, which focus on stock investments, Partbnb offers the same flexibility to fractional ownership of vacation rental property.
It allows accredited investors to purchase a small “part” of a vacation rental property, then earns income from the rental of that property without having to manage it themselves.
Each property is divided into 10,000 parts, starting from $34 each. Monthly dividends from rental income are paid directly to the investors’ digital wallet.
However, that’s not all.
Investors can also buy, sell and trade their small property parts on the platform. After 6 months, any investor can sell their parts on the platform directly to other investors. With the amazing Caribbean locations, the properties are likely to experience strong capital growth.
Plus, how flexible and liquid these investments are make them very convenient. Once you have sold your property part, you have the choice to re-invest it in another property or withdraw the funds to your bank account.
This offers a lot of advantages.
Rather than investing in intangible assets such as stocks - Partbnb allows you to invest in real estate. The fractional ownership model allows you to invest as much or as little as you like. Plus, the fact that the properties are rented out as vacation homes means that the investment generates a return.
To learn more about how Partbnb works and how easy it is to buy and sell your fractional investment, check out our guide to “How Do I Sell My Parts?”