close
close

Pasteleria-edelweiss

Real-time news, timeless knowledge

3 Surprising Investments You Can Buy Through an Online Broker
bigrus

3 Surprising Investments You Can Buy Through an Online Broker

When you think of investing in a brokerage account, you probably think of investments like stocks, bonds, mutual funds and ETFs. But there are other types of investments you may be surprised to learn are available to investors like you.

Let’s look at three of the most interesting types of investments that certain brokerage accounts offer ordinary investors.

If you are looking for an innovative broker that offers investments that appeal to you, Click here now for the current list of our favorite brokers.

1. Cryptocurrencies are available through some brokers

Some brokerages let you buy cryptocurrencies like Bitcoin and others from the same account you hold stocks and bonds. This is quite rare with “traditional” online brokers, but is becoming more common with app-based brokerage platforms.

Robinhood is a great example of a broker that offers cryptocurrency investing. Not only does it offer a comprehensive list of popular cryptocurrencies, but it also has some of the lowest fees in the cryptocurrency market. You can buy and sell Bitcoin, Ethereum, Dogecoin, Litecoin, and more on Robinhood’s top-rated app. To learn more about Robinhood and open an account, click here.

2. You do not need to open a CD through the bank

A certificate of deposit (CD) is generally considered a banking product, not an investment. And they certainly are. CDs are offered by FDIC-insured financial institutions, and there are some great CD rates available now through excellent online banks.

However, some popular brokers offer CDs through their platforms. These are offered through partner banks and are known as brokered CDs, but the catch is that you can put money directly into CDs through your brokerage account. Vanguard is a great example of a top broker that offers brokered CDs with terms of up to 10 years (or more) on its platform.

Besides the ease of investing in CDs without opening a separate bank account, there are other benefits to using this method for CDs. Because the CD is in your brokerage account, you can sell it to another investor before it reaches maturity (known as a secondary trade) and avoid paying the early withdrawal penalty that often comes with cashing out the CD early.

3. Alternative investments for everyone

The term “alternative investing” is a broad term that can refer to almost anything except stocks, bonds, mutual funds and ETFs, which are typically available through brokerage accounts. Cryptocurrencies can be described as an alternative investment.

In addition to cryptocurrency, some brokers are finding ways to add alternative investments that have historically been accessible only to wealthy investors. These can include pre-IPO companies, private loans, commodities, and more.

More investment types coming soon

The past few years have been an exciting time in the development of the brokerage industry, but this may be just the beginning. Options such as 24-hour stock trading are reportedly being seriously considered, and the list of potential alternative investments that could be offered is much longer than currently available.

In summary, it would be surprising if there were not even more investments available through top brokers in a few years.