Active vs Passive Investing: Top Stock Investing Tips

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Understand the differences and unique selling points of active and passive investing to enhance your trading and investment strategy.

This being said, investor goals and risk appetite should always be at the forefront when deciding on financial investments. For conservative or risk averse investors focused on lower fees and tax, a passive strategy may be more suitable, while a risk seeking investor who may not be agitated by higher costs and tax may prefer an active investing strategy.

Note: Traders should be aware of risks of loss to both active and passive investing. The possibility exists that you could sustain a loss in excess of your initial investment. You should be aware of all the risks associated with active and passive investing and seek advice from an independent financial advisor if you have any doubts.Leveraged trading in foreign currency or off-exchange products on margin carries significant risk and may not be suitable for all investors.

We recommend that you seek independent advice and ensure you fully understand the risks involved before trading.a registered Introducing Broker with the Commodity Futures Trading Commission and is no longer a Member of the National Futures Association in the U.S. Any and all information provided by FXP is not intended for use by U.S. residents or individuals domiciled in the U.S.

 

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