Did you know that a quarter of Quebec's investors have gone the do-it-yourself route? Contrary to popular belief, DIY investors are not all millionaires and financial experts, nor do they make trades every week. If you're thinking of joining their ranks, here are four signs that you could be ready to take the plunge:
You should have a clear understanding of your risk tolerance, expectations, budget and goals—whether you're investing for retirement, your kid's education, a trip or to buy a home.
Interested in investing but short on time? Learn about InvestCube, an automatic rebalancing solution from National Bank Direct Brokerage.
With the wealth of resources available, online brokerage has never been easier. According to the Investment Industry Regulatory Organization of Canada (IIROC), DIY investors are able to achieve financial independence faster.
Here are some advantages of direct brokerage in the words of DIY investors:
Have you already dabbled in the stock market, maybe with the help of a broker or a more experienced friend? Are you eager to branch out on your own and want to learn as much as possible about the field? Keep in mind that a successful DIY investor spends time learning the ropes and developing skills through online investing. As financial journalist Bernard Mooney puts it: "You learn to skate by skating, to draw by drawing, and to become a good investor by investing."
Start with the basics and move on from there. Go at your own pace and start managing your assets little by little as a DIY investor. Stay informed. Be curious and take the time to learn. We can help. National Bank Direct Brokerage offers a range of free seminars and webinars to help you hone your investment knowledge and master the various analytical tools at your disposal. You can also talk to one of our experienced representatives at any time by calling our Customer Service Department.
Buying and selling on the stock market involves fees, including brokerage fees. When you do your own trading directly on an online platform like the one available at National Bank Direct Brokerage, you'll pay no management fees or steep commission charges on your trades. For example, when you buy or sell at least 100 Canadian or U.S. exchange-traded fund (ETF) units, you don't pay commission.
If you can relate to most of these statements, DIY investing might be right for you. Keep in mind that your success will depend on the time and effort you put into your investing, including taking part in seminars and other events. Set the stage for success!
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