Tough choice: a 2024 overview of the most profitable investment options - Octa

Among those, investing stands out as a legal and potentially profitable way to accrue wealth, safeguard personal savings against inflation, or achieve immediate financial gains to address daily needs. In this article, the experts at Octa provide a brief overview of the most profitable investing opportunities as of now.

Whether we like it or not, the world is changing rapidly. With the deluge of tech innovations, many aspects of our lives that seemed unalterable just a decade ago have transformed beyond recognition. A perfect example of this is the employment market. Nowadays, a stable full-time job, more often than not, falls short of providing an income sufficient to ensure even basic living standards. Given that supporting your family and relatives or making retirement savings has become almost a privilege, it is only natural that most people actively seek supplementary sources of income.

A 2024 research shows that the rising living costs compels more than three-quarters of professionals in Asia to consider taking new jobs. According to another survey conducted in 2023, "almost 60% of people in Asia-Pacific have a side job, with the majority saying they do so to make ends meet."

However, there are some less demanding ways to outpace the rising costs. A much more appealing wealth management option for many, investing has seen significant growth in popularity in recent years—and for a good reason. Investing doesn’t require as much time and physical effort as a second job while opening a whole gamut of financial opportunities to those seeking additional income sources.

Below, the experts at Octa, a global investing platform offering a wide variety of tradable assets, list the pros and cons of some of the most popular investment choices in 2024.

Forex

The foreign exchange market (Forex) is a highly dynamic investment choice offering unparalleled liquidity, which translates into ample profit opportunities for retail players. The advantages of Forex also include low starting capital requirements, around-the-clock trading, and the amount of leverage the participants enjoy.

While trading Forex requires knowledge and experience, it presents a highly lucrative option for earning extra income here and now without having to wait for long-term returns. Offering a high level of control over investment in conjunction with one of the lowest minimum starting budgets, Forex is a much less challenging investment choice for retail players than stock or indices and a much more dynamic option than savings accounts or the commodities market.

Cryptocurrencies

With Bitcoin reaching an all-time high in March and crypto traders worldwide still waiting for Ethereum ETFs to receive approval from the Securities and Exchange Commission, the crypto market looks vibrant after a sluggish beginning of the year.

The upcoming Bitcoin ‘hard fork,’ or a radical change in the coin's blockchain that effectively results in the creation of a new cryptocurrency may also create some positive market dynamics. However, the volatile regulatory landscape in this field of investment and a significant probability of local governments imposing restrictions makes crypto trading a high-risk zone, if not a no-go area, for those looking for immediate and relatively easy returns.

Gold

Regarding commodities in general and gold in particular, no central bank regulator sets the rules of the game. Here, the law of supply and demand determines the price—a shortage of a particular commodity naturally raises the rate of return.

Many investors use commodities to protect their savings against inflation since rise in real asset prices often triggers an increase in the cost of living.

While most commodities prices dropped in 2023, gold was in high demand and rose by more than 13% by the end of the year, reaching a record high of $2,135 per ounce. Some experts say this trend will continue in 2024, but based on the historical market dynamics, peak values often indicate that a shift in trend is just around the corner. In 2024, buying gold may prove to be a reasonable choice, but you need to keep in mind that even in the best of times, it doesn’t deliver sufficient immediate returns to cover your daily needs unless you have a significant starting capital at your disposal.

Stocks and stock indices

A stock market index comprises equities from similar companies or those that match a predetermined set of criteria. For long-term investments, stocks and stock indices have proven to be a vital source of annualised return. However, the level of expert knowledge required of a successful stock investor is quite high, and the significant risks involved make it a challenging way for retail investors to earn additional income.

Energy futures

A futures contract is a financial instrument through which a buyer and seller agree to deliver an asset and pay for it at a fixed price at a future date. The asset bought or sold is usually a commodity or financial instrument. The futures market attracts investors thanks to its high liquidity, almost around-the-clock trading schedule, and nearly limitless portfolio diversification opportunities. On the other hand, engaging in futures trading requires a lot of time and effort, which, along with the many inherent intricacies, makes for a very demanding investment option.

Fixed-income equities (deposits and bonds)

A deposit is money transferred to a bank or some other financial institution. A bond, on the other hand, is a fixed-income instrument that represents a loan made by an investor to a company or governmental institution. As a rule, both offer a modest return while maintaining a low-risk profile and comparatively high level of control over investment. In other words, this is another investment option for those who do not expect immediate returns and have significant expertise and starting capital.

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Octa

Octa is an international broker that has been providing online trading services worldwide since 2011. It offers commission-free access to financial markets and various services already utilised by clients from 180 countries with more than 42 million trading accounts. Free educational webinars, articles, and analytical tools they provide help clients reach their investment goals.

The company is involved in a comprehensive network of charitable and humanitarian initiatives, including the improvement of educational infrastructure and short-notice relief projects supporting local communities.

Octa has also won more than 60 awards since its foundation, including the ‘Best Educational Broker 2023’ award from Global Forex Awards and the ‘Best Global Broker Asia 2022’ award from International Business Magazine.