Investment platforms: a guide for the beginner and advanced investor

Investing has become an increasingly popular topic today. We all want to grow our money and secure a better future for ourselves and our families. Fortunately, today's technology has made investing more accessible than ever. At the heart of this are investment platforms that offer a convenient and easy way to invest your money in different assets.

But what is an investment platform? Put simply, it's an online environment that allows you to buy, sell and manage a range of investments such as stocks, bonds, funds and more. Think of it as a digital investment hub with everything you need under one roof.

Investment platforms are suitable for beginners and experienced investors alike. If you're just starting out on your investment journey, you can find a platform that offers a simple interface, educational supplementary material and even automated investment options. Experienced investors, on the other hand, will appreciate platforms that offer a wide range of investment options, advanced analytical tools and the ability to execute more sophisticated trades.

Estonia's investment landscape has evolved rapidly in recent years. We have seen both the emergence of new local platforms and the arrival of international players. This has created a wide range of choices for investors, but also increased the need to make informed decisions.

In this article, we will give you an in-depth overview of the different investment platforms in Estonia. We take a closer look at their types, features and services, compare local and international platforms and give advice on how to choose the right platform for you. We will also discuss brokerthe role of investment platforms, the security of investment platforms and future trends in this area.

Types of investment platforms

The world of investment platforms is diverse and offers a wide range of options for investors with different needs and experience. It is important to understand what the different types of platforms are and how they differ from each other in order to find the best solution for you.

Banks

Many in Estonia banks offer investment services, allowing clients to buy and sell shares, bonds, funds and other financial instruments. Banks often also offer investment advice and the possibility to create and manage investment portfolios. The banking environment is familiar and safe, but their investment options may be more limited and their fees higher than those of specialised platforms.

Trading platforms (e.g. Interactive Brokers, eToro)

Trading platforms like Interactive Brokers and eToro is aimed at active investors who wish to trade in a variety of financial instruments. These platforms offer a wide range of trading options, advanced analytical tools and real-time market data. The trading platforms are particularly suited to experienced investors who are prepared to assess risks and make investment decisions themselves.

Specialised platforms (e.g. real estate investment, cryptocurrencies)

In addition to investment platforms of a general nature, there are also specialised platforms focusing on specific asset classes or investment strategies. For example, there are platforms dedicated to real estate investments, cryptocurrencies or crowdfunding projects. Specialised platforms are suitable for investors who have clear preferences and want to delve into specific areas.

Robo-advisors

Robo-advisors are automated investment platforms that use algorithms to create and manage investment portfolios. Investors fill in a questionnaire about their risk tolerance and objectives, and the robo-advisor builds a portfolio that suits them, which is then managed automatically. Robo-advisors are a good choice for novice investors who want a simple and convenient solution.

Asset management companies

Asset management companies provide investment services to both individuals and businesses. They manage clients' investment portfolios according to their objectives and risk tolerance. They also often offer personalised investment advice and access to exclusive investment opportunities.

Features and services of investment platforms

Investment platforms today offer much more than just the possibility to buy and sell shares. They have evolved into holistic financial environments, offering a wide range of services for beginners and experienced investors alike.

Trading in various financial instruments (shares, bonds, funds, etc.)

Investment platforms allow you to trade a wide range of financial instruments, including:

Shares: Buy and sell both Estonian and international companies shares.
Bonds: Invest in government, municipal or corporate bonds.
Funds: Diversify your investments by buying shares in different funds investing in different asset classes.
Derivative instruments: Experienced investors can trade futures, options and other derivatives to hedge risks or increase returns.
Cryptocurrencies: Some platforms also offer the possibility to buy and sell cryptocurrencies such as Bitcoin and Ethereum.

Creation and management of investment portfolios

Investment platforms help you create and manage your investment portfolio. This means you can monitor the performance of your investments, make the necessary changes and keep all your investments in one place.

Investment advice (personalised or automated)

Some investment platforms also offer investment advice to help you make more informed investment decisions. Advice can be both personalised and automated. With personalised advice, you can consult a financial expert who can help you design an investment plan that meets your needs. Automated advice is based on algorithms that analyse your risk tolerance and goals and recommend suitable investments accordingly.

Analysis and research tools

For experienced investors, analytical and research tools are also important to help them make an in-depth analysis of different investment opportunities. Investment platforms often offer a range of charts, technical indicators, news and analysis to help investors better understand the market and make more informed decisions.

Teaching materials for beginner investors

Investment platforms also often offer a range of educational materials for beginner investors. These can be articles, videos, webinars or even interactive courses. The educational materials help investors to understand the principles of investing, the characteristics of different asset classes and to learn about different investment strategies.

The role of brokers on investment platforms

The world of investment platforms is brokerThese are the key actors through which all buying and selling transactions take place. But what are broker and how to choose a reliable partner?

Broker services

BrokerThe services offered by you may vary, but generally include:

Trading platform: Brokeroffer their clients a trading platform through which they can buy and sell various financial instruments. The platform can be web-based, a mobile application or even dedicated software.
Trading accounts: Brokeroffer a range of trading accounts to suit investors with different needs and experience. Some accounts may be aimed at beginners, offering a simpler interface and lower transaction fees, while others are designed for experienced investors, offering advanced tools and greater lending options.
Market data and analysis: BrokerThey also often provide real-time market data, news, analysis and economic calendars to help investors make more informed decisions.
Customer support: Good for broker offers high quality customer support, available by phone, email and chat. Customer support should be prompt, professional and able to answer all investor questions.

How to choose a reliable broker?

Trusted brokerThe choice of the right investment is crucial to the success of your investment. Good for broker ensures that your money is safe, trading goes smoothly and you get professional help when you need it. BrokerThe following factors should be taken into account when choosing:

Regulations: Choose from broker, regulated by a prudent financial supervisor. This ensures that broker follows strict rules and your money is protected from fraud and irregularities.
Maine: Find out at broker background and reputation. Read feedback from other investors, check independent ratings and make sure that you. brokerhas a good reputation.
Fees: Compare different brokertheir fees. Some brokerThey can charge transaction fees, account management fees or inactivity fees. Select broker, whose fees are reasonable and commensurate with the service provided.
Trading platform: Test different brokerour trading platforms to find the right one for you. The platform should be user-friendly, intuitive and offer all the features you need.
Customer support: Make sure that broker provides high quality and accessible customer support. Good customer support is important for both beginners and experienced investors.

What is a broker?

Broker is a financial institution or company that acts as an intermediary between investors and financial markets. BrokerThese allow investors to buy and sell a range of financial instruments, such as shares, bonds and funds, by providing access to exchanges and other trading platforms.

BrokerThey generate revenue through fees, which can be transaction-based or monthly. Some brokers may also offer additional services such as investment advice, analytical tools or access to exclusive investment opportunities.

Comparison of investment platforms

There is a wide range of investment platforms in Estonia, from simple and user-friendly ones to sophisticated and professional solutions. In addition, you need to decide whether to choose a local or an international platform. Let's take a closer look at the pros and cons of different platforms and what might be important for Estonian investors.

Platforms for beginners vs. platforms for experienced investors

The complexity of investment platforms depends largely on their target audience. Platforms aimed at beginner investors tend to have a simpler user interface, offer fewer investment options and tend to focus on passive investment strategies such as index funds. These platforms are well suited to those who want to start investing with a small amount of money and do not want to get involved in complex financial instruments.

Platforms for sophisticated investors, on the other hand, offer a wide range of investment options, including stocks, bonds, funds, derivatives and even cryptocurrencies. These platforms also offer advanced analytical tools, real-time market data and the ability to execute more sophisticated trades. Experienced investors will also appreciate the possibility to use margin money to increase their positions.

Local vs. international investment platforms

Local investment platforms have the advantage of an Estonian-language interface, customer support and often a better overview of the local market. They can also provide access to shares in Estonian companies that may not be available on international platforms. Trading on local platforms may also be easier from a tax perspective.

International platforms, on the other hand, often offer a wider range of investment opportunities, including access to markets in many different countries. They may also offer more sophisticated tools and lower transaction fees. Multinational platforms are particularly suitable for investors who want to diversify their investments across different markets and who have the knowledge and experience to make their own investment decisions.

How to choose the right investment platform for you

As we saw earlier, the range of investment platforms is very wide and varied. Finding the right platform can therefore seem challenging. Here are some important factors to consider when choosing a platform.

Investment objectives and risk tolerance: Before you start comparing platforms, think carefully about your investment objectives. Do you want to save for retirement, buy your first home or simply grow your money? It's also important to understand your risk tolerance - how much are you prepared to lose to potentially earn more? The answers to these questions will help you narrow down your choices.
Platform features and fees: Different platforms offer different features and services. Some are aimed at beginners, offering a simple interface and a limited range of investment options. Others are designed for sophisticated investors, offering advanced tools, a wide range of asset classes and the possibility of using borrowed money. Compare the features of the different platforms to make sure they meet your needs. Also pay attention to fees, which can have a significant impact on your investment returns.
User feedback and ratings: Be sure to read the feedback and reviews of other investors before deciding on a platform. There are many forums and websites online where investors share their experiences with different platforms. This can give you valuable information about the platform's ease of use, quality of customer support and overall reliability.
Opening a test account: Many investment platforms offer the possibility to open a free trial account, where you can try out the platform's features and trading environment risk-free. This is a great way to familiarise yourself with the platform before investing real money.

In addition to these factors, you could also consider:

User interface: Is the platform user-friendly and intuitive? Do you like its design and navigation?
Customer support: How important is professional and accessible customer support for you? Do you prefer to communicate by phone, email or chat?
Security: How does the platform keep your data and money safe? Do they use two-factor authentication and encryption?

Ultimately, the best investment platform is the one that best suits your individual needs and goals. Don't rush into a decision, but take the time to research and compare different platforms. That way, you can be sure you've made the right choice and that your investment journey is off to the best possible start.

Summary

The world of investment platforms is full of opportunities, but also of challenges. Choosing the right platform is an important step towards your investment success. This article has given you an overview of the different types of investment platforms, their features, the role of brokers and how to choose the right platform for you.

But this is just the beginning. Investing is a continuous process of learning and development. We encourage you to do thorough research before you start investing, to familiarise yourself with different investment strategies and to understand the risks involved.

Remember that investing is not risk-free. The value of investments can go down as well as up, and past performance is no guarantee of future returns. Start small, invest only what you can afford to lose and be prepared to learn from your mistakes.

If you're ready to start your investment journey, don't hesitate to explore the different investment platforms and find the right one for you. The Estonian market offers a number of good opportunities for beginners and experienced investors alike. Good luck investing!