Commodities

Commodities are basic goods interchangeable between producers, such as grains, gold, beef, oil, and natural gas. As an asset class, they are highly speculative and are especially sensitive to economic shifts.

The type of brokerage account you need depends on the type of precious metals investment you are looking to make. For investments into silver and gold funds and mining stocks, a simple brokerage account will do. If you intend to trade futures and options, you’ll have to confirm the brokerage provides these options.

Commodity Investment Essentials

• Diversification: Over time, commodities tend to provide returns that differ from other stocks and bonds. A portfolio with assets that don't move in lockstep can help you better manage market volatility.
• Potential returns: Individual commodity prices can fluctuate due to factors such as supply and demand, exchange rates, inflation, and the overall health of the economy. In recent years, increased demand due to massive global infrastructure projects has greatly influenced commodity prices. In general, a rise in commodity prices has had a positive impact on the stocks of companies in related industries.
• Potential hedge against inflation: Inflation which can erode the value of stocks and bonds can often mean higher prices for commodities. While commodities have shown strong performance in periods of high inflation, investors should note that commodities can be much more volatile than other

There are two general categories of commodities:

Hard Commodities: They are raw materials such as crude oil, gold, silver, and natural gas.
Soft Commodities: They are plant products such as coffee, cocoa, sugar, wheat, and corn.
Investing in gold within a retirement account can provide a hedge against inflation and exposure to an asset that has traditionally taken a safe haven investment role in times of financial market turmoil. You can easily gain exposure to gold in a traditional IRA by purchasing shares in gold ETFs, as most IRAs through brokerages allow you to specify some ETF investments. For people looking to own physical gold in a tax-advantaged account, setting up a self-directed IRA with a custodian and approved depository is required. Finding the right company for a gold IRA can simplify things alot.

Our strategic considerations

• Hedge against Inflation: Whether you desire to hedge against inflation, trade direction of price, or access exposure to leading global commodities
• Low commissions: Starting at $0.4 with no added spreads, ticket charges, platform fees, or account minimums
• Flexibility: Our commodity trading platform is designed to appeal both to inexperienced traders and to professionals.

Discover the Commodities You Can Trade with capitalrise Limited.

Trading in commodities permits investors to trade on price and hedge risk in an effective way. As they behave differently than stocks and currencies,often being influenced by unique factors such as weather conditions, geopolitical events, and supply-demand imbalances, they can be a perfect addition to a diversified trading account.
Energy Commodities: Trade natural gas and crude oil to capture price movements due to world demand, supply shocks, and geopolitics.
Precious & Industrial Metals: Trade on exchanges like gold, silver, and copper, ideally designed for hedging or speculating on economic cycles.
Agricultural Products: Diversify your trade portfolio with soft commodities such as wheat, coffee, corn, and others, which are affected by environmental and seasonal changes.

CDs and Bonds

Both CDs and bonds are debt-based securities, and the investor is the creditor. Bonds are lower-risk investments than stocks, which makes them an essential component of a balanced investment portfolio, especially for older or more conservative investors.
It’s no different than having a friend ask for a $10 loan today and give you an IOU promising to pay $11 next week. The $1 interest is collected for the same reason that banks charge interest on loans: to compensate you for delaying your ability to make use of the money. You can’t spend that $10 when you don’t have it. Certificates of deposit (CDs) and bonds are similar but not identical.
They are both fixed-income securities that the investor holds onto until their maturity dates. The investor puts money into a certificate of deposit or a bond for a set period, and they get their money back when the time is up. The investor is also paid interest.

A CD is a type of bank account, which means it is covered by the FDIC. If your bank isn't able to return the money you've deposited, the FDIC will reimburse you for up to $250,000. CDs also offer certainty. Your interest rate is locked in when you open the account. If market rates fall, your CD will keep its high interest rate, earning more than other bank accounts.

CDs are as safe as an investment gets. The Federal Deposit Insurance Corporation (FDIC) guarantees them up to $250,000, so even if the bank should fail, you'll recoup the principal up to that limit.

Certificates of deposit (CDs) and bonds are both safe investments. Both offer modest returns but carry little or no risk of losing your principal. They are much like interest-paying loans, with the investor acting as the lender. Bonds and the best CD rates typically pay better than traditional savings accounts. However, they differ in crucial ways that you need to know when deciding where to park your funds.

Are CDs and Bonds Safe Places To Keep My Money?

Bonds and CDs are generally low risk. CDs are backed by the FDIC for up to $250,000, even if the bank collapses. Bonds are backed by the organization that issues them, so your money is only at risk if that company fails
While CDs and bonds do convert back into cash rather quickly, you will often be penalized for doing so prematurely.

Types of Bonds

• Municipal Bonds: Municipal bonds, or munis, are bonds issued by local governments. Contrary to what the name suggests, this can refer to state and county debt, not just municipal debt. Municipal bond income isn't always subject to most taxes, making it an attractive investment for investors in higher tax brackets.
• Corporate Bonds: Corporate bonds refer to the debt securities that companies issue to pay their expenses and raise capital. The yield of these bonds depends on the credit worthiness of the company that issues them. Interest from corporate bonds is subject to both federal and state income taxes.
• Sovereign Bonds: Sovereign bonds, or sovereign debt, are debt securities issued by national governments to defray their expenses. The issuing governments are very unlikely to default, so these bonds typically have a very high credit rating and a relatively low yield.

Bonds vs. Banks

Borrowing from a bank is perhaps the approach that comes to mind first for many people who need money. That leads to the question, "Why would a corporation issue bonds instead of just borrowing from a bank?"
Like people, companies can borrow from banks, but issuing bonds is often a more attractive proposition. The interest rate that companies pay bond investors is usually less than the interest rate available from banks. Companies are in business to generate corporate profits, so minimizing the interest is an important consideration. That is one of the reasons why healthy companies that don’t seem to need the money often issue bonds. The ability to borrow large sums at low interest rates gives corporations the ability to invest in growth and other projects.
Such restrictions can hamper a company’s ability to do business and limit its operational options. Issuing bonds enables companies to raise money with no such strings attached.

Crypto ETF

The Crypto ETF portfolio is currently composed of spot Bitcoin ETFs and spot Ethereum ETFs (together, “crypto ETFs”) to provide clients with exposure to the two largest crypto assets, Bitcoin and Ethereum, weighted generally by their market capitalization. Spot ETFs track the price movements of Bitcoin and Ethereum in real time by holding crypto assets, as opposed to futures ETFs which track the price movements of cryptocurrency futures contracts. Different cryptocurrency spot ETFs use different methodologies for tracking price, so price movements may vary between the spot crypto ETFs selected for the Crypto ETF portfolio and other spot crypto ETFs for the same digital assets. The Crypto ETF portfolio also includes a small allocation to a U.S. Treasury ETF. Crypto ETFs allow investors to gain exposure to digital assets through our platform without the need to manage wallets or custody issues.

Trade crypto ETFs like Bitcoin and Ethereum with competitive fees.

Through peer-to-peer financial networks, DeFi uses security protocols, connectivity, software, and hardware advancements. This system eliminates intermediaries like banks and other financial service companies. These companies charge businesses and customers for using their services, which are necessary in the current system because it's the only way to make it work. DeFi uses blockchain technology to reduce the need for these intermediaries. Access crypto markets with advanced order types. Tap the market moves of the two largest and widely traded cryptocurrencies, Bitcoin and Ethereum, with this fully automated ETF portfolio. We monitor and periodically rebalance your portfolio to reflect the relative weight of these coins in the broader crypto market.

The crypto ETFs selected for inclusion in the Crypto ETF portfolio are selected based on Capitalrise investment selection process, which evaluates ETFs for inclusion based on cost to trade and cost to hold the funds, among other factors.

Our strategic considerations

• Automated rebalancing - We automatically adjust your portfolio based on your account balance and market movements to help manage risk.
• Growth Potential: Crypto ETFs allow investors to capitalize on the expanding digital asset market without needing deep technical knowledge. With increasing institutional adoption, as seen with the approval of spot Bitcoin ETFs in January 2024 and Ethereum ETFs in July 2024.
• Crypto made convenient- Investing in crypto ETFs lets you tap the market without the hassle of direct ownership or trading.

Strategic Considerations for Crypto ETF

• Risk management: Investors with a lower risk tolerance may appreciate the structure and professional management of crypto ETFs to gain exposure to cryptocurrencies.
• Investment goals: Those looking for potential additional benefits like staking rewards might prefer owning cryptocurrencies directly, despite the added responsibilities and risks.
• Market timing: The 24/7 trading environment of cryptocurrency exchanges allows for rapid reactions to market shifts, while ETFs are constrained to market hours.

By trading cryptocurrency Futures you won’t have to worry about crypto exchanges, wallets, or where to store your tokens. Instead, you can speculate on the direction of Bitcoin and Ether’s prices, all while not having to hold crypto. With exchange-traded cryptocurrency Futures, you can utilize leverage and advanced trading strategies to help increase your profits, however, the risk of loss rises as well

Forex (FX)

The foreign exchange market, commonly referred to as the forex or FX, is the global marketplace for the trading of one nation's currency for another. The forex market is the largest, most liquid market in the world, with trillions of dollars changing hands every day.

The forex market determines the day-to-day value, or the exchange rate, of most of the world's currencies. If a traveler exchanges dollars for euros at an exchange kiosk or a bank, the number of euros will be based on the current forex rate. If imported French cheese suddenly costs more at the grocery, it may well mean that euros have increased in value against the U.S. dollar in forex trading.

Why invest in Forex?

• Low Capital Requirements: Due to tight spreads in terms of pips, one can easily start forex trading with a small amount of initial capital, unlike other markets.
• Ease of Entry: There are many forex technical indicators for short-term traders and several fundamental analysis theories and tools for long-term forex trading.
• Flexible Schedule: The forex markets are open 24/7, enabling trades at one’s convenience and advantageous to short-term traders who tend to take positions over short durations.

The Forex is a decentralized market. It has no physical existence and no owner or management. There are no clearing houses or central bodies to oversee the forex. That means traders aren't held to strict standards or regulations.
It also means there are fewer fees and commissions to pay.

Our strategic considerations

• Bidirectional Profit Potential: Currency trading offers equal profit opportunities whether markets trend upward or downward. Traditional stock investment typically requires rising prices for profitability, but forex operates differently. This flexibility means you're never sidelined during economic uncertainty.
• Global Trading Variety From widely-traded pairs like EUR/USD to more specialized combinations featuring emerging market currencies, forex presents an extensive range of opportunities. This variety enables you to concentrate on markets where you possess particular knowledge or those that suit your preferred trading hours.
• Cutting-Edge Tools and Education Contemporary forex traders benefit from technological resources that previous generations could hardly imagine. Real-time analytical tools, algorithmic trading capabilities, mobile platforms with instant execution, and comprehensive learning materials are now standard offerings.

Access forex from major international exchanges, all from one

It has no centralized location, and no government authority oversees it. The forex is an electronic network of banks, brokerages, institutional investors, and individual traders (mostly trading through brokerages or banks)