Investing & Lending

Use the Money You Already Have to Make More Money

If you have some extra money to invest, you can make very good profits online.  You only have to look at the big banks to see how profitable lending and investing money can be! 

The attraction of investing online rather than with a bank is simply this: the interest rate offered online is usually much higher than anything a bank will ever offer.

What's more, making some additional money by lending and investing is an especially alluring idea because it is passive.  This means that you earn without having to do anything once you have invested.

However, a word of warning before you enthusiastically rush in ... investing online is possibly THE most risky way of making money (apart from buying into a scam, of course).

Please be cautious, do your research thoroughly before handing over any funds, and try and get your initial investment back as soon as possible to minimize the risk of loss.

Lending & Investing Options

There are a number of ways to invest online.  Here are some of the options available for you to consider.

Peer to Peer Lending

Much of the high profits made by banks is from lending out money that others have invested.  They pay customers a little interest to invest, and then lend out that money charging a much higher rate of interest.  The difference is profit.  Knowledge of this profit, and the cost of borrowing money, has given rise to Peer to Peer Lending (also called P2P). 

The concept behind peer to peer lending is simple - instead of borrowing from a bank, a person borrows from a stranger. The borrower pays a lower rate of interest than that charged by a bank, but a higher rate than the bank would pay the lender.  Win for the borrower. Win for the lender.

The downside is that the loans can be unsecured and there is little you can do to protect yourself against losing your money if things go wrong.

However, there are established companies that manage peer to peer lending, and they can definitely reduce your risk.

More information about some of these can be found by following the links on the right hand side of this page. 

Online Trading

Before the internet, investors had to call a stockbroker in order to invest or trade in stocks, shares, bonds, currencies, commodities, derivatives.  Today it is possible to do this online.  Many brokers offer unique "trading platforms" which are computer programs giving tools and advice to allow you to participate electronically. Make sure you deal with a reputable online company ... there are a lot of people out there all too ready to make big promises and then take your money from you.  Look for companies that are underwritten by a real bank or financial institution, as these are regulated by strict laws and offer a little more protection.

High Yield Investment Programs

Also known as HYIPs, these online programs offer incredibly attractive returns, but are infamous for disappearing without a trace.  While some people are able to successfully play the game, I personally don't recommend them.  Too risky!

Getting Started

Learn all you can about investing.  Read books, research online and ask questions.  The more you know, the more you can spot the difference between a genuine opportunity and a scam.  For beginners, peer to peer lending is probably the best place to start.

Wishing you every success!

Additional information