Trade is now one of the most exciting ways to make a living. However, despite this line of work being quite tedious, many individuals are drawn to it since it is profitable, provides a convenient setting, and generally has an interesting vibe.
But the thing about trade is the opportunity it gives traders – to profit, to experience different trades, to meet new people, discover new avenues and so much more. So you can say trade has few limits that allow investors to become creative in their crafts.
One of which is trading with multiple asset classes which in turn is called “Multi-Asset” trading. To know more about it, check out everything you need to know down below!
What is Multi-Asset Trading?
Multi-Asset trading is a kind of trading strategy that allows investors to engage in multiple asset trades simultaneously. Combining multiple asset classes is called forming a “portfolio of assets.” So in a nutshell, multi-asset trading increases the portfolio’s diversification by distributing assets among several asset classes.
There are 3 ways you can implement this trading strategy such as stocks, other forms of financial derivatives, metals, commodities and cash. This highly attracts traders since this puts a level of volatility making it ideal for starting trading or careful traders.
What are the benefits of multi-asset trading?
To know if this strategy is for you, you first need to know its various benefits and if they appeal to you, why not give multi-asset trading a shot? Down below is its list of pros and cons!
- This can expose you to a wider scope of assets.
- This can expose you to multiple sectors of trade.
- This can expose you to various strategies and individual investments like bonds, securities and so on.
- Offer great flexibility when trading.
- Off puts volatility.
There are various benefits to keep a lookout for but just to simply give you an idea, listed are prominent benefits you can expect when trading with multi-assets.
What are the disadvantages of multi-asset trading?
Now you know its benefits, it’s now time for you to know its cons to fully grasp what this strategy is like.
- Tax treatment. (For tax purposes, a fund is deemed a debt fund if less than 65% of its assets are allocated to stocks.)
- It’s still volatile.
- Not ideal for inactive traders.
- Has high fees.
- Has poor trade execution.
What are the best trading platforms for multi-asset trading?
When it comes to trading, it’s ideal for sticking with a trading platform that specialises in the market you desire. And for multi-asset trading, listed below are some of the best ones to consider:
This is the best choice for traders who are looking for a great platform for low costs. This has a $0 account minimum, $0 fees for stocks and EFTs and a $0.65 contract for options trading. They were also awarded the Best Broker for EFTs category and are great for either retail clients or institutional ones.
- Offers direct indexing.
- Offers quality portfolio analysis as well as account features.
- Great order execution.
- Low costs.
- Not available elsewhere except for US citizens.
- Has high broker assistance trading costs.
This trading platform boasts marvellous features like advanced charting, quality order types, great trading tools, superior execution, level II pricing and compatibility with various software and devices. cTrader is also a great choice to consider if you’re a professional trader or an investor.
- Offers a demo account.
- Tabs and features are easy to understand and navigate.
- Supports over 20 languages.
- This can be used on various devices may it be mobile, laptop, tablet or computer.
- Unreliable trading bots.
- Their stop-loss order sometimes fluctuates.
Another trade to greatly consider is Ameritrade. This also has a $0 account minimum and has low costs on trading fees and contracts. This platform is exceptionally a great choice for starting traders since it offers great educational sources and materials every novice needs.
- Quality customer service.
- Great educational sources and materials.
- Has excellent trading tech and options analytics.
- Has a wide range of products to offer.
- Doesn’t offer fractional shares.
- Account fees can sometimes be high.
- Only limited cryptocurrency trades.
What is the largest multi-asset fund?
Studies have shown that the largest multi-asset funds are exchange-traded funds or in other terms EFTs. This has a net asset of $2.4 billion and has the iShare Core Growth Allocation EFT.
How do I start multi-asset trading?
Starting your journey with multi-assets is pretty simple! Especially if you’ve chosen a platform that’s beginner and user-friendly. To help you out, below is a step-by-step guide that’ll help you from start to finish!
Step 1: Download and install your chosen trading platform
First and foremost, you need to look for a trading platform that suits your trading needs, then download and install it into your device. Make sure to choose a platform that is compatible with different software and devices.
Step 2: Register and open an account
Once you have the platform downloaded and installed, now you can register and open an account. To do so, all you need to do is click on the “register” button and provide the required information.
Information required varies depending on the platform of your choice but it usually asks for your full name, birthdate, address, mode of payment and e-mail. After choosing an account type, again, account types may vary depending on the platform. But to give you an idea, some offer Live Trading Accounts or Demo Accounts.
Step 3: Log in
Once you’ve registered and opened an account, it’s now time to log in. Log in using the credentials provided. These credentials are usually emailed to you.
Step 4: Download the necessary version
Now you need to download the appropriate version of the platform to match your operating system, since it may vary depending on your device. And there may be times where they ask for a fee, but most platforms don’t require one in this step.
Step 5: Start trading!
After step 4, you’re now ready to start trading! All you’re left to do is log in and start living trading or demo trading.