An expert’s guide on choosing the right online trading account

We present an authoritative guide on choosing the best online trading account that gets you the results you seek.

Up to a few years ago, it was unheard of for any single individual or company to track and trade on the stock markets without a broker’s help. But this was the pre-Internet age, when telephones and bulky trading terminals were tools of the stock market trading scene.

It is a vastly different scenario that presents itself today. Many investors are able to trade on the markets by themselves, though it is admittedly a challenging task. Advanced technology and myriad digital tools are making it easy for people to open online trading accounts and play the stock markets as per their level of expertise. However, this entails knowing a few tricks and essential information. In this guide, we compile five expert tips on choosing the right online trading account:

* Check its full range of functionalities. The denser the trading account, the more functionalities it offers. You can start with a basic account if you are a novice, but a basic account can become quite frustrating if you have a higher level of expertise. As a serious trader, you must be able to harness the full potential of the account to tap into and analyse current trends. The tool must be able to summon historical data, test new trading methods, provide indexing, real time pricing and also online charting, among others.

* Use an account with a tested trading model. Some trading accounts offer dense functionalities that let you create new trading models of your own. However, many are tested to align with past trading strategies. Also, it is more prudent to go with a tested trading model than invent your own and potentially lose money. Smart investing is about maximising available capital, not reinventing the wheel.

* Get an account from a reputed advisory firm. It is all very well to trade online on your own, but this approach might leave you vulnerable to losing money. A team of experts from an advisory firm is better placed to steer your investment in the right direction. Besides, the firm can open an online trading account for you and even run it on your behalf, based on your financial plan.

* Pick an account with connections to the biggest markets. If you are a novice, you might be content with playing the domestic markets till you are reasonably confident of going bigger. Once you are sufficiently experienced, you can work with a trading account that gives you real time access to the biggest stock exchanges in the world (such as the US stock market). You can then view portfolios across industries, trade in international markets, and also use mobile trading apps to trade on the move, etc. 

How has Kuwaiti real estate grown in liquidity?

Of all the non-oil sectors in Kuwait, real estate has shown good growth. In the years to come, it promises high liquidity and stable growth rates.

The GCC countries have been performing well on many fronts lately. Chief among these is crude oil, infrastructure, construction and real estate. Overall, the GCC countries are moving away from the earlier dependence on oil and petroleum sale to boost the economy. This has opened up new avenues of revenue in other sectors of business.

In terms of real estate, countries like Kuwait have picked up pace in the last decade or so. Apart from its booming oil economy, Kuwait has done remarkably well for itself with its real estate, a major contributor to the economy. Real estate in Kuwait has been performing exceptionally well owing to several factors combining to lower prices.

A focus on Kuwaiti real estate

Real estate in Kuwait has not been hampered in its growth trajectory, the way some other sectors have been. There was certainly a slump in the years 2013 to 2015, but pace has picked up once again. Demand for quality housing is at an all-time high, with rise in expat population and investors looking to buy properties in key residential areas. Not much buildable land is available in Kuwait, and the Government regulates the zonal classification of available land into residential, commercial and industrial. It is not often that the Government may reclassify an existing tract of land to make way for more buildable real estate, which further restricts the land use of available land.

A rising population demands more housing. Fortunately, there is institutional and Government support for the growth of real estate in Kuwait. The sector is today, helping to bolster and diversify the economy in many ways.

Recent Government policies have had a lot to do with the overall expansion of the real estate sector in Kuwait. The Government has taken a remarkably proactive approach towards housing, especially mass housing. It has tied up with several agencies on the ground to help diversify real estate and make Kuwait an ideal housing destination in the Middle East. Financial entities such as the Public Authority for Housing Welfare (PAHW) and Kuwait Credit Bank (KCB), to name just two, are ably supporting the housing and construction initiatives along, too.  

Extra liquidity has also been ushered in real estate in Kuwait through the country’s wealth being increasingly pumped into domestic real estate projects. The Kuwait Investment Authority (KIA) is instrumental in providing this liquidity through well placed funding. Meanwhile, KCB generates liquidity for Kuwaiti nationals wishing to buy into the country’s real estate. This reach also extends to agricultural and industrial initiatives.

PAHW extends loans to married Kuwaitis who wish to buy a house. It also facilitates the provision of houses. 

Investing in Kuwait – A wise choice

Kuwait has emerged as an attractive investment destination across a variety of sectors and industries. Here’s looking at what makes it an alluring investment destination.

When it comes to domestic and foreign investment in the GCC countries, UAE and Saudi Arabia have hitherto been the clear choice for most investors. But business environments are never complacent for long – growing economies of other GCC countries like Kuwait and Bahrain have also been competing strongly. Kuwait, particularly, is trying to shake off its dependence on crude oil and petrol earnings, and focussing on the equity capital markets, and new businesses in media and infrastructure.

To this end, the Government has also introduced new regulations and corporate legislation to usher in foreign investment in Kuwait. Over the years, Kuwait has emerged as an attractive investment port of call – its economy is fairly stable, it has a huge propensity for growth in terms of non-oil businesses, and it has several natural resources that continue to build the GDP.

Here’s a lowdown on why investment in Kuwait is a superb option for private investors and companies:

1 It has several maturing markets. Kuwait is a high GDP country with a high propensity for further growth. Far from reaching saturation levels, it is just getting started in new markets like infrastructure, construction and media. Kuwait is slated to have among the fastest growing economies in the GCC, led by increased equity capital and debt capital funding. Private equity companies are being backed by both domestic and international players.

2 The next frontier is IPO. Several high profile companies in Kuwait are now lining up to get listed on the market. This has led to increased dependence on financial advisory firms that facilitate the IPO unit distribution and acquisition. At the same time, the IPO markets are in a state of positive flux. Kuwait’s Government is completely supportive of initiatives that attract both domestic and international funding. For this, the IPO market is being restructured and streamlined for more local businesses to be able to make the listings cut.

4 A bigger reach for FDI and private equity. Saudi Arabia and the UAE have the largest performing economies in the GCC region. With Kuwait also angling for a bigger share of the FDI pie, the region is set to benefit with higher incendiary foreign funding across a variety of sectors. Kuwait is looking to emulate the successes of UAE and Saudi Arabia in terms of raising higher private equity investment as well as lower the stock percentage holdings to give the IPOs a much-needed fillip.

5 Easier licensing for businesses. Kuwait is working on over 350 new regulations that will make it simpler for new businesses to acquire licenses and incorporation. However, the clear emphasis is on transparency in operations, as stipulated under clauses demanding that the executive management be separated from the board, and that single shareholders may start new businesses by allowing company shares to be transferred. Its long overdue Companies Law may spur increased investment in Kuwait.