Buffets Finance Review – Why Is It One Of The Best Brokers For Investing In ETFs?

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Shivangi Gupta
Shivangi Gupta
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Retail investing has changed quite drastically over the last two or three decades. Before commission-free investment became the norm, relatively fewer people bothered with individual stocks, and the ones that did, had to buy through their brokers.

Now, thanks to online brokers and no commissions, many people invest in stocks by themselves. A similar trend has been seen when it comes to funds. Formerly, mutual funds, with their relatively high fees, used to reign. Now, low-fee ETFs are a much more popular choice and a vehicle you can easily invest in with Buffets Finance.

Why Invest In An ETF?

ETFs have some characteristic differences from both individual stocks and mutual funds. Unlike stand-alone stocks, the ETFs are baskets of assets which means they are inherently more diversified. The risk is diluted, but so is the return potential. But most ETFs, especially the ones tracking a healthy index, are usually much safer, buy-and-forget types of investments compared to individual stocks.

As for mutual funds, the primary difference is that an ETF comes with very low, almost minimal fees, whereas mutual funds fees can be quite high, eroding away your profits and gains at a consistent pace. ETFs are passively managed, and mutual funds are actively managed. But if the long-term return potential is not substantial enough, it’s rarely the reason to pay higher mutual funds fees.

Investing in ETFs with Buffets Finance

There are various reasons why Buffets Finance stands out when it comes to ETF investing. Some of them are relatively small, and some quite substantial, but collectively, they all make a compelling argument in favor of Buffets Finance.

• There is no account minimum with Buffets Finance. You can open your brokerage account with literally zero pounds and start looking into ETFs. Though it’s a common feature nowadays, it adds to the benefits that Buffets Finance offers.

• Buffets Finance offers zero-commission trading for both ETFs and stocks. There is no fee whether you are buying or unloading an ETF, except the management fees charged by whoever created the ETF.

• While it’s a great broker for investing in ETFs, that’s not the only thing it allows you to invest in. You get standard options like stocks and futures, but also mutual funds (if that’s your cup of tea), options, and cryptocurrencies. This is ideal for an investor that wishes to balance the conservative growth of their ETFs with relatively high (with high-risk) growth from individual stocks or crypto investments.

• It comes with a brilliant ETF screener, which allows you to list and compare hundreds (if not thousands) of ETFs at once for different characteristics, including fees and return potential. The side-by-side comparison of different ETFs allows you to make the best possible choice.

• Not all brokers offer access to all the ETFs you can invest in your country or other countries that comply with your local rules. For example, UK investors may not be able to invest in US-based ETFs, but even with local ETFs, they can get access to some of the most common indexes (like NASDAQ or S&P 500). The more ETF options a broker can provide you, the better, and Buffets Finance outshines many of its competitors in this regard.

• While it’s a relatively small factor, especially in the long-term, Buffets Finance also comes with a sign-up promotion that can give you a small financial boost in the beginning, when you are likely to need it the most.

• Buffets Finance customer service is prompt and helpful. You can reach out to customer service at any time, and they can help you with almost all of your problems, including missing or blocked transactions. They may even guide you on how to approach your financial institution if the problem is at their end.

• Buffets Finance comes with a hefty resource bank. From information and literature on individual stocks to guides on balancing your ETF portfolio and more complex strategies, it has almost all the information you may need in choosing the best ETFs for your portfolio.

Even though Buffets Finance is one of the best choices for ETF investments there are, it has some limitations. For example, it doesn’t come with an investing + banking feature, something that’s steadily gaining traction. But that’s a relatively small price to pay for all the other features and strengths you are getting access to via this ETF broker.

Conclusion

When you are choosing your ETFs, make sure to look out for any overlaps among your different ETFs. They are quite common when you invest in broad market ETFs, and you may end up over diversifying your portfolio (as a whole) while paying different fees for the same pool of assets. But that should be taken into account with how faithfully the ETF is following the underlying index, its return potential, distribution frequency, etc.
Visit the Buffets Finance website or check out the application to see whether or not it’s the right fit for your investment needs.

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