How To Trade Sustainable Instruments Online

Many people assume that sustainability and online trading doesn’t go well together, but where are here to prove the opposite. In fact, we would argue that online trading is the best type of financial investment for people that encourage sustainability and in this post, we’ll explain why that is.

What is Online Trading?

In this guide, we refer to online trading as trading done using online brokers, also known as CFD trading. These brokers provide traders access to trading platforms where you can trade everything from stocks and commodities to cryptocurrencies and forex.

Now, unlike a traditional stockbroker, for example, an online broker offers derivatives of these instruments meaning you never own the underlying asset but instead speculate on its value. Let’s say you want to trade on Tesla’s stock, then your job is to predict whether or not the value of the stock will increase or decrease in a set amount of time.

The beauty with this setup is that it allows brokers to offer a larger selection of instruments that your average broker, which, in turn, make it easier to find sustainable trading opportunities. We’ll talk more about different sustainable instruments that you can trade further down, but first, we want to explain how you can start trading.

How To Start Online Trading

Getting started in the world of online trading is quite straightforward, even when living in the Middle East or Africa. All you really have to do is figure out who you’re going to trade with and then what you’re going to trade, so let us walk you through the process.

Find an Online Broker

The number on thing that you have to do is find an online broker. Without the broker, you won’t gain access to the markets or a trading platform and, subsequently, you won’t be able to trade. There is a plethora of brokers on the market and they all provide a unique product so you need to know what you’re looking for. Generally speaking, there are three things to focus on in your hunt for a new broker.

  1. Safety – Trading is always associated with the risk of losing money, it’s something we all have to accept. However, there are other risks involved in the industry that you can completely avoid. By using a regulated and licensed broker, you can rest assured that you and your funds are protected and that you won’t get ripped off.
  2. Assets and Platforms – Every broker has a unique selection of assets on offer and every broker’s platform is slightly different. Therefore, you must ensure that you’re happy with both. Also, make sure that the sustainable instruments you’re interested are listed.
  3. Suitable Accounts – As a trader from MENA, you might be obligated to open a special Islamic Trading account according to religious rules. Luckily, many of the world’s leading broker offer this type of account and you’ll be spoiled for choice.

Pick Your Sustainable Instruments

With a broker set up and some money deposited on your trading account, it’s time to start trading. As mentioned earlier, there are several kinds of sustainable instruments available today and you can pick and choose the once you are the most interested in or the ones that you think will bring in the most profit.

A Glance at Sustainable Trading Instruments

Stocks

Naturally, trading stocks from sustainable and environmental-friendly companies is one easy way to ensure that you’re investments are morally accepted. ITT Industries (ITT), Brookfield Renewable Partners LP (BEP), and First Solar (FSLR) are all considered to be “green investments”.

Indices & Funds

As the interest in sustainability grows around the world, the number of green investments follow. Today, there are more sustainable indices and funds available to traders and investors than ever before.

Commodities

Commodities can be a complicated selection of assets because many of the most profitable commodities are gas and oil in different shapes. That being said, the number of green energy options is increasing so the market is growing. Also, you can trade precious metals and food items which aren’t necessarily sustainable but also not damaging to our planet.

Forex

Forex, or exchange rates, is perhaps one of the greenest markets out there. There is no connection to morally lacking corporations and the assets aren’t bound to anything but there own exchange rate and the central bank that controls them.

Cryptocurrencies

Lastly, the cryptocurrency market is the newest and most sustainable market to trade on right now. Similar to regular currencies (forex), cryptocurrencies aren’t connected to any oil-drilling companies. However, what makes them more sustainable than currencies is that they are decentralized and therefore, not even connected to a central bank or a specific country.

About Salman Zafar

Salman Zafar is the Founder of EcoMENA, and an international consultant, advisor, ecopreneur and journalist with expertise in waste management, waste-to-energy, renewable energy, environment protection and sustainable development. His geographical areas of focus include Middle East, Africa, Asia and Europe. Salman has successfully accomplished a wide range of projects in the areas of biomass energy, biogas, waste-to-energy, recycling and waste management. He has participated in numerous conferences and workshops as chairman, session chair, keynote speaker and panelist. Salman is the Editor-in-Chief of EcoMENA, and is a professional environmental writer with more than 300 popular articles to his credit. He is proactively engaged in creating mass awareness on renewable energy, waste management and environmental sustainability in different parts of the world. Salman Zafar can be reached at salman@ecomena.org or salman@bioenergyconsult.com
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