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IQ Option: à utilização prática da plataforma

Dedicamos esta página do guia completo de IQ Option à utilização prática da plataforma. Até agora, vimos o que é a opção de QI, como funciona, o que são as opções binárias, o que se pode negociar, quanto se pode ganhar. Abaixo passaremos da teoria à prática e descobriremos como utilizar a IQ Option, ou seja, como negociar com esta plataforma específica de negociação de opções. Vamos também repetir brevemente que, para além das opções binárias, este corretor acrescentou recentemente opções clássicas, que lhe permitem obter lucros ilimitados e ter expirações sem prazo fixo.

Esta página está estruturada desta forma: na primeira parte vamos fazer um exemplo prático e ilustrar todos os ofícios feitos com screenshots, enquanto na segunda parte vamos desenvolver todas as “notas de margem” e completar os pontos tocados.

iq-option-plataforma

Se quiser saber como utilizar a IQ Option do Brasil leia este artigo.

Exemplo de negociação com IQ Option

Em primeiro lugar, temos acesso à plataforma IQ Option. O registo, bem como o acesso e utilização da conta de demonstração são gratuitos e não exigem qualquer depósito.

SE TIVER ALGUMA DIFICULDADE EM SE REGISTAR OU ENTRAR NO SISTEMA, REMETEMOS PARA A PRIMEIRA LIÇÃO SOBRE COMO ACEDER À OPÇÃO IQ. PARA MAIS INFORMAÇÕES SOBRE A CONTA DE DEMONSTRAÇÃO, CONSULTE A LIÇÃO DE CONTA DE DEMONSTRAÇÃO DA OPÇÃO IQ GRATUITA.

Para negociar com o IQ Option, há apenas 5 pontos a seguir:

  1. Seleccione o activo subjacente para comprar a opção binária em
  2. Seleccione o tipo de opção binária
  3. Seleccionar a hora (ou seja, o prazo)
  4. Seleccione o montante (ou seja, o investimento na transacção individual)
  5. Comprar a opção seleccionando a direcção (Para cima ou Para baixo)

Passo 1 – Seleccionar o activo

Quando estamos dentro da plataforma IQ Option, podemos seleccionar o activo de onde queremos comprar opções binárias clicando no botão “+” ou na ferramenta cujo nome aparece ao lado de “posições abertas”.

Como seleccionar o activo na plataforma de negociação IQ Option

Neste caso, por exemplo, poderíamos clicar no botão + ou “EUR/USD” em negrito, abaixo. Isto abrirá uma janela onde poderá seleccionar o activo com o qual pretende negociar.

Como gostamos do EUR/USD (Euro versus Dólar) e o conhecemos suficientemente bem, decidimos ficar com este activo.

Passo 2 – Seleccionar o Tipo de Opção Binária

Na mesma janela de selecção de activos existe também a possibilidade de escolher o tipo de opção binária com a qual se pretende negociar. Tenha em mente que existem activos que nem sempre estão disponíveis para todos os tipos de opções.

Como escolher o tipo de opções binárias na opção QI

Como pode ver, os tipos de opções que podem ser seleccionadas são os seguintes:

Turbo: opções com tempo de expiração até 5 minutos (a partir de 30 segundos)

Binário: opções com prazo de 15 minutos

Clássico: opções de tipo clássico com rentabilidade ilimitada e uma data de validade mais distante. Sobre como operar com as opções clássicas, dedicámos um artigo específico separadamente

Passo 3 – Escolha a hora

Seleccionar a hora significa definir a data de expiração da opção. O prazo de validade da opção é o momento em que a transacção termina e o comerciante tem lucro ou prejuízo:

Ele tem lucro se o preço tiver terminado na direcção esperada

Sofre uma perda se o preço tiver acabado no sentido oposto ao esperado

Nenhum lucro ou prejuízo se o preço voltar ao mesmo nível que no momento da compra (muito raro).

Relativamente à selecção do prazo, é necessário proceder a alguns esclarecimentos, uma vez que normalmente se tem uma ideia errada sobre o funcionamento desta função. De facto, normalmente pensa-se que quando se clica no botão para comprar a opção (ou seja, a última operação a fazer, que reportamos no ponto 5), pensa-se que a contagem do prazo de validade começa a partir desse momento.

E, em vez disso, não o faz. A contagem decrescente para a expiração começa a partir do momento em que se compra a opção, que não é o momento em que se clica no botão de compra.

Podemos ver melhor este mecanismo na figura seguinte. Para seleccionar o tempo de expiração, é necessário alterar a hora no canto superior direito do ecrã (que representa o tempo de expiração, ou seja, a hora em que a opção será encerrada.

Exemplo de compra de IQ Option

Prestar atenção aos seguintes pontos:

Hora da compra: é realçada por uma linha que parte de um cronómetro (desenho abaixo) e marca 00:54. Isto significa que a compra será feita em 54 segundos. Neste momento podemos decidir a direcção, depois clique em “Para cima” ou “Para baixo”. A compra ainda terá lugar no momento designado! Assim, quando clica, não está a comprar uma opção, mas é-lhe dito para a comprar no momento da compra pré-determinado.

Data de expiração: é destacada pela bandeira vermelha. Esse é o tempo de expiração. Neste caso, sendo uma opção de 30 segundos, o tempo de expiração será de 30 segundos após a compra.

iq-option-acoes

Assim, se considerarmos o que foi feito no caso da captura de ecrã, podemos ver que o tempo de expiração é às 20:56:00, enquanto o tempo de compra foi 30 segundos antes, ou seja, às 20:55:30.

O resultado foi positivo e podemos vê-lo na secção “História do comércio”, na coluna da esquerda.

O histórico das operações no histórico de negociação na Opção de QI

Como pode ver, às 20:59 comprámos 1 Turbo (ou seja, uma opção binária Turbo) por $1 e o resultado foi um lucro de $0.76. Se olharmos novamente para a imagem anterior, verificamos que, nesta ocasião, o lucro pré-determinado foi fixado em 76%.

Passo 4 – Seleccione o montante

Seleccionar a quantidade é certamente a operação mais fácil de fazer, uma vez que basta definir uma quota com as teclas – e +, ou escrevê-la manualmente na caixa.

Como seleccionar o montante a investir na opção QI

No entanto, se a fixação do montante é uma coisa simples, a decisão não deve ser tomada.

De facto, ao seleccionar um montante, deve fazê-lo tendo sempre em conta estes factores:

  1. O primeiro ponto é o que tem em conta o grau de risco de uma operação. Se uma operação que pensamos ou conhecemos é arriscada, é melhor investir nela menos dinheiro do que uma que ofereça maiores hipóteses de sucesso.
  2. O segundo ponto tem em conta as competências do comerciante. Deveria perguntar-se “como estou?”, “quais são os meus resultados até agora?”, “sou suficientemente capaz de investir mais dinheiro?” e assim por diante.
  3. O terceiro ponto é sobre a responsabilidade. Lembre-se que a negociação de opções binárias envolve riscos, tal como todos os activos financeiros, pelo que, caso a previsão se revele errada, deve considerar a possibilidade de perder o que investiu na negociação. Invista apenas dinheiro que possa pagar e não ponha em risco as suas necessidades pessoais e familiares. Fixar um orçamento máximo para a negociação e as operações durante um determinado período de tempo.

Passo 5 – Comprar a opção, seleccionando a direcção de preço esperada

A compra da opção binária move-se em estrita conformidade com a definição do tempo (ponto 3). De facto, os próprios movimentos de preços antes do momento da compra podem fazer com que o utilizador mude de ideias sobre a direcção do preço (com uma alteração prevista), a hora (com uma alteração no tempo de expiração), ou a própria compra (ou seja, adiar a transacção para outra hora).

No entanto, para comprar a opção precisa de clicar no botão Para cima ou Para baixo, dependendo da direcção esperada do preço.

Se você espera que o preço no vencimento seja mais alto do que quando comprou a opção, clique no botão verde “Para cima”. Desta forma, irá comprar uma opção “Up”, ou seja, uma opção CALL.

Se espera que o preço no vencimento seja inferior ao de quando comprou a opção, clique no botão “Para baixo”. Desta forma, irá comprar uma opção “Down”, ou seja, uma opção PUT.

Como negociar com o IQ Option, vamos resumir

Para facilitar a compreensão e a memória, vamos resumir brevemente a forma de negociar com a opção de QI.

Vamos começar com a seguinte imagem de ecrã.

Como negociar com o IQ Option, resumo

Selecionamos o ativo: este é o instrumento financeiro no qual queremos fazer a previsão sobre a direção do preço

Seleccionamos o tipo de opção: varia em função do tempo de validade e podemos escolher entre turbo (até 5 minutos), binário (a partir de 15 minutos) e clássico (do qual falaremos na próxima lição).

Seleccionamos o prazo: este é o momento em que a opção será encerrada e, portanto, o momento em que saberemos se ganhámos ou perdemos

Seleccionamos o montante: o montante que pretendemos investir na transacção individual. A opção de QI permite-lhe começar a partir de $1

Compramos a opção decidindo a direção: são duas operações em uma, porque ao selecionar a direção e clicar no botão correspondente, ao mesmo tempo a ordem de compra da opção do tipo selecionado será iniciada.

A situação contabilística e as operações realizadas

Para além de olharmos para as operações individuais, temos também de olhar para o panorama geral. Pode ser bem sucedido numa troca, como acabámos de documentar, mas se trocar opções binárias por lucro não é certamente “por uma noite de negócios”. Se pretende iniciar um caminho que o possa levar a uma certa constância no lucro, desde que se esforce o suficiente para estudar e actualizar (bem como paciência), então tem de ter em conta o seu balanço geral.

Já vimos isto em lições anteriores, quando apresentámos as características da plataforma, mas repetimo-lo brevemente. Ao clicar em “Histórico de Negociação” (na coluna da esquerda da plataforma) pode aceder ao histórico de todas as transacções efectuadas durante os últimos 2 anos e mais. Desta forma, pode fazer um balanço diário, semanal, mensal, trimestral, etc.

Se perceber que não está a obter os resultados desejados, então terá de corrigir o seu método e estratégia. Sangue frio, paciência, desprendimento, estudo e actualização. Quanto mais se usar, melhor será.

Um olhar sobre as notícias do mercado

Outra ferramenta útil, apenas para efeitos de actualização que também referimos no parágrafo anterior, é a secção “Market News”, que pode ser acedida da mesma forma a partir da mesma coluna da esquerda da plataforma. Estas são notícias curtas mas importantes, que afectam ou podem afectar os activos transaccionáveis. Por exemplo, notícias macroeconómicas que podem afectar os preços de uma determinada moeda e, por conseguinte, afectar potencialmente a tendência da moeda cruzada em que esta está presente.

Por exemplo, um aumento da taxa de juro americana pelo FED irá afectar todas as taxas de câmbio com o dólar americano. Esta é uma notícia muito poderosa, mas há muitas outras que não são mencionadas mas que afectam uma moeda, embora não tão substancialmente como se pode ver com uma alteração na taxa de juro (de longe os dados macroeconómicos mais importantes no Forex quotidiano).

Negociação em multi-tarefas em activos múltiplos

O IQ Option oferece a possibilidade de abrir várias operações em simultâneo. Se, por exemplo, se abrem posições com um vencimento não muito curto, faz sentido mantê-las todas sob controlo, mesmo todas de uma só vez.

Para além de apresentar um único gráfico grande, o IQ Option permite-lhe apresentar até 9 gráficos ao mesmo tempo. Para o fazer, clique no ícone de 4 quadrados ao lado do logótipo de QI no canto superior esquerdo.

Como visualizar múltiplos gráficos ao mesmo tempo com a IQ Option

Como pode ver, o modo gráfico único é seleccionado na imagem. Abaixo, encontrará todos os modos de visualização possíveis com 2, 3, 4 e mais de 4 gráficos. O último, em baixo, à direita, tem 9 pequenos gráficos com visor quadrado.

Todos estes gráficos podem ser apresentados na mesma posição que o gráfico grande.

A imagem seguinte é um pouco confusa, mas é preciso compreender como se encaixam até 9 gráficos.

Exibição de até 9 gráficos com IQ Option

Tenha em conta que o IQ oferece modos de visualização mistos, com gráficos grandes e pequenos, como pode ver na pré-visualização do ecrã (ver imagem anterior). Por exemplo, com 5 gráficos pode definir o ecrã para 1 grande esquerdo, direito ou superior, mantendo os outros 4 mais pequenos.

Como carregar a sua conta e levantar

Quando você opera com a conta real, você opera com dinheiro real. Isto significa que para começar, terá de carregar a sua conta (depósito) e para reembolsar efectivamente os seus lucros, terá de levantar.

iq-option-brasil-entrar

Note o botão “recarregar”, o item “retirar” e a necessidade de verificar a conta.

Para reabastecer a sua conta pode simplesmente clicar no botão verde, grande e aberto “reabastecer” localizado na parte superior direita da plataforma. O facto de ter sido colocada tão proeminentemente deve-se à utilidade que esta função pode ter em certos momentos em que se arrisca, por exemplo quando se nota uma forte tendência ascendente ou descendente e se quer fazer lucro “on the fly”. Contudo, nestes casos, o olho. Não abuse, senão, estará a aceitar mais transacções com prejuízo do que com lucro.

Para retirar, em vez disso, é necessário clicar na figura com a sua fotografia ou na silhueta (caso não tenha definido uma imagem) e depois clicar em “Retirar”. Para se retirar, deve ter verificado a sua identidade com a ajuda do serviço de apoio ao cliente IQ Option. Como pode ver na figura acima, aparece um aviso de que precisa de verificar a sua conta.

5 basic rules for successful retirement investment 800x410 - 5 basic rules for successful retirement investment

5 basic rules for successful retirement investment

We have been talking about investment for the past couple of months so how about capping it off with something about retirement investment?

The worst way to live out your post retirement era is having to depend on your relatives to take care of you, being forced to work while in your 60s or being unable to afford a vacation. Retirement is a time for you to relax, travel the world and spoil your grandchildren with expensive gifts.

Let’s look at 5 basic rules for retirement investment that will ensure your retirement is a time of pure joy and excitement.

 

#1 You need to know what investment options are available to you

You need to know what investment options are available to you - 5 basic rules for successful retirement investment
Generally, people use different options to save for their retirement. You have the option of your 401(k) which is a contribution made by you and your employer towards your retirement, or you can invest like many other people do – through brokerage firms. The most important thing is to learn as much as possible about the options available to you so that you can make the best investment decisions.

 

#2 You need to start early

You need to start early - 5 basic rules for successful retirement investment
Life is unpredictable and you are not guaranteed to have a steady source of income all through. It is therefore important to learn to start saving for your retirement early. The beauty about starting early is that you save up more and your investment gains more returns. Starting early also means that you will learn early about investing and become better at it as time goes by. So do not wait too long to start.

 

#3 You need to understand your cash flow

You need to understand your cash flow - 5 basic rules for successful retirement investment
For you to invest wisely for your retirement, you need to understand the math around your cash flow. It is therefore important to learn to calculate money that comes in versus money that goes out. This enables you learn how much you are worth in terms of net worth. You should not be making guesses about your cash flow, you need to know precisely how your money is made and spent. This will advise how you make your investment decisions.

 

#4 Learn not to make emotional decisions

Learn not to make emotional decisions - 5 basic rules for successful retirement investment
In life, people are mostly led astray by emotions like fear or excitement. To be a good investor especially when it comes to financing your retirement, you must learn not to be influenced by these emotions. Be sure to make calculated and deliberate investment decisions.

 

#5 Always ask for help

Always ask for help - 5 basic rules for successful retirement investment
Last but not least, you must learn to ask for help. You need to acknowledge that there are people with more experience than you in matters of retirement investing therefore, ensure to seek all the help you need.

Sound investment decisions will definitely improve your chances of a comfortable retirement therefore, you need to invest a lot of your time and energy in this venture.These steps are but guides, you need to research and go deeper to get better results.

We would love to hear your thoughts about this article.

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How to maximize the value of your 401(k)

Over the past couple of months, we have been sharing ideas on how to grow your investment. We just thought it a good idea to include the 401(k) in our investment series. We know that many of our readers will be interested in knowing how they can maximize the value of their 401(k).

Let’s jump right into it.

 

You must learn to participate

You must learn to participate - How to maximize the value of your 401(k)
If you work for an employer who offers you a 401(k) plan, you must learn and be willing to diligently participate in the plan. It is quite simple, the sooner you start contributing to the plan, the sooner your money will start earning returns on it. This is an investment that rewards you depending on your commitment.

 

Always go for the company match option

Always go for the company match option - How to maximize the value of your 401(k)
The 401(k) plan simply involves money being directly deducted from your salary and deposited to your 401(k) account. As an investor, if you think of it as so, you are free to select the percentage of your salary to contribute. Often, your employer will always match your contribution and this basically means you have doubled your investment. How easy is that? Be sure to go for the maximum match option available.

 

Planning is your friend

Planning is your friend - How to maximize the value of your 401(k)
You must make it a habit to plan your portfolio. Your 401(k) is essentially part of your investment portfolio therefore you need to do proper planning in order to reap maximum benefits. Be sure to start your investment at a very young age, build on your experience over the years and be aggressive with your stock choices. You will enjoy the benefits.

 

Learn to diversify

Learn to diversify - How to maximize the value of your 401(k)
We all have heard that it is never a good idea to put all our eggs in one basket. This is a concept that is very relevant when it comes to investment portfolios. Your 401(k) is basically your retirement package therefore it is a good idea to spread out the risk among different investment options. Best case scenario, all your investments may actually end up paying off.

 

You must avoid loans

You must avoid loans - How to maximize the value of your 401(k)
Your 401(k) is your investment and most likely your retirement plan therefore avoid at all costs borrowing on it. You are more likely to spend the loan money on things that will not benefit you in the long term hence losing your 401(k). Be a savvy investor, and stay away from loans.

Your 401(k) is your journey to a happy retirement therefore do your best to take good care of it and maximize on its returns.

Finance 800x410 - Finance - 4 tips on how to double your investment

Finance – 4 tips on how to double your investment

In our previous post, we highlighted ideas for short term risk free investments which we believe you found to be very useful. We felt it prudent to follow up with tips on how to double your investment.

We know that it is always an investor’s dream to at least double their money in an investment. This is a dream that many investors don’t get to achieve for one reason or the other. However, things will change today!

We take a look at 4 important tips on how to double your investment.

 

#1 You have to be willing to earn it slowly

You have to be willing to earn it slowly - Finance - 4 tips on how to double your investment
Seasoned investors in the finance sector know that nothing good comes quick. It is advisable to diversify your investment portfolio putting your money in a number of non-speculative ventures such as stocks in a blue chip company and treasury bills. This investment will obviously not double within a year but in the long run, it will get there.

 

#2 Learn to be an opportunist

Learn to be an opportunist - Finance - 4 tips on how to double your investment
There is a tendency by many investors to panic-sell their stock at the slightest feeling that a stock they have invested in will plummet. This may actually be the best time for you to invest and increase your opportunity to double your investment. Generally, companies go through a financial slump but as long as there are signs this company will recover then you better hold on to your stock and even increase them.

 

#3 Go for the safe options

Go for the safe options - Finance - 4 tips on how to double your investment
There is always a faster way to get to your destination but it is always dangerous. In the same breath, there is a much slower way to get there and it is always safer. Investments pretty much work the same way. You need to consider investing in safer bets such as zero-couponbonds. In as much as they may take time to double, you are guaranteed your investment will eventually get there.

 

#4 Learn to be speculative

Learn to be speculative - Finance - 4 tips on how to double your investment
This is where we say if you want to play with the sharks then you have no option other than learn how to swim, and swim well. At times, the only available way to double your money fast is through taking a risk. Be speculative, go for the bubbles, make your money fast and get out. Be sure to do sufficient homework because there is a very high probability of losing your money.

All in all, it is important to know that the best things come to those who wait and that is why it is said that patience is a virtue. Never be in a rush to double your investment because you could equally lose it all.

Take your time do your due diligence and always take the safer options.

We welcome your feedback on this article.

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Infographic by: www.visual.com

These are the top 6simplest short term investment options 800x410 - These are the top 6 simplest short term investment options

These are the top 6 simplest short term investment options

We all dream of being financially secure and most of us often wonder how we can achieve this security in the shortest time possible. Keeping this in mind, we will get right to it – respecting the spirit of quick returns. Got it?

Here are top 6 simplest short term investment options.

 

#1 Take advantage of credit card cash back rewards

Take advantage of credit card cash back rewards - These are the top 6 simplest short term investment options
Credit card cash back rewards are an opportunity for easy and quick money that most people do not know about. It is often not a direct cash investment but rather a benefit you get when you spend actual dollars. It is quite a lucrative offer if you think about it.

 

#2 Opening a money market account

Opening a money market account - These are the top 6 simplest short term investment options
If you are looking for a quick and risk free way of getting a good return out of your money then you need to consider a money markets account. Currently christened as the savings account on steroids. In this type of account, it is the amount of money in your account that determines the return not the length of time you have invested the money.

 

#3 opening an online savings account

opening an online savings account - These are the top 6 simplest short term investment options
Online savings accounts currently offers some of the best risk free returns in the market. The beauty is that all you have to do is deposit your savings into the account and watch it earn interests. The interest rates are not that high but since it is risk free, it is worth it.

 

#4 Consider the Certificate of Deposits

Consider the Certificate of Deposits - These are the top 6 simplest short term investment options
The beauty of a Certificate of Deposit (CD) is the fact that you have the freedom to determine the length of the investment period.The bank will offer you a selection of terms and it is up to you to pick the one that works best for you. The size of the return is fully dependent on the terms you will agree on.

 

#5 Open an online checking account

Open anonline checking account - These are the top 6 simplest short term investment options
As is the case with the online savings accounts, you can also get certain financial benefits from using online checking accounts. The beauty of checking accounts is that you are not limited in terms of withdrawals you can make. The only disadvantage is that the interest rates are quite low. But, that is generally what you get with low risk investments.

We know there are plenty more short term investment options available and we would appreciate if you could share your ideas for the benefit of our readers.

Please share your input through our feedback page.

 

 

 

These are the top 6simplest short term investment options 800x410 - Top 4 investment tips for 2018

Top 4 investment tips for 2018

To start us off, let’s declare that 2018 will be the year to make your money work for you.

The number one way of securing your finances is through investing in viable ventures. In finance, especially personal finance, it is advisable to invest any extra money you have, or money you can afford to squeeze out of your income.

We know that figuring out where to put that extra money with the intention of multiplying it may be challenging because most of us are not finance or investment experts. Here are 4tips for you to consider in 2018.

 

#1 You need to pay off your credit card debts

You need to pay off your credit card debts - Top 4 investment tips for 2018
To some, this may not seem like an investment however, it is the first logical thing you need to do if you are going to invest successfully. Debt is not your friend and it will often affect your ability to invest therefore, pay off all your credit cards so that you can have extra money in your hands to invest with. You will have more financial wiggle room when you are not tied down by debts.

 

#2 You need to learn to play defense

You need to learn to play defense - Top 4 investment tips for 2018
Currently, the stock market is generally doing great therefore investing in stocks is a good idea. However, there are signs that a recession is coming therefore you need to prepare for this. Playing defense will not involve selling all your stock and exiting the stock market, it actually means choosing stock that is less prone to the effects of a recession such as dividend growth stocks. These types of stock are known to withstand recessions in the stock market.

 

#3 Trust your bank more

Trust your bank more - Top 4 investment tips for 2018
Thanks to Trump, financial stocks have been on a growth trajectory with the sector currently boasting of an average of about an 18 per cent growth since he was elected. You could check out how the Bank of America and JPMorgan Chase have been performing to get a clear understanding of what we mean. It is interesting to note that financial experts project a further increase in the value of such stock owing to the favorable government regulations that Trump is proposing to introduce. This is definitely a good place to put your money.

 

#4 You should buy a home

You should buy a home - Top 4 investment tips for 2018
This is a bit controversial because a number of investment and financial experts believe that your home cannot be regarded as a good investment. This may be true in the sense that if you invest let’s say $300,000 into something like a stock index fund, the return will be much higher over a certain period of time in comparison to the value of your home. However, investing in your home has its own set of benefits. For starters, money you would have allocated to paying rent now becomesa form of savings. Secondly, most of us buy homes with borrowed money therefore, the 3 per cent annual price gain will significantly go up therefore increasing the property value over time.

These are just 4 tips and we are sure there are many more. We would love to hear more from you through our feedback page.

foreign direct investment  where to invest in the world montreal 50bf81f02268d w1500 - Top 4 investment tips for 2018
Infographic by: www.visual.com

These are the 5 main differences between Credit Unions and Banks 800x410 - These are the 5 main differences between Credit Unions and Banks

These are the 5 main differences between Credit Unions and Banks

If you have been following our previous posts which we believe you have, then you know that credit unions are similar to banks, however just smaller and mostly community based. Here, we take a look at 5 of the main differences between the two.

 

#1 The interest rate levels differ

The interest rate levels differ - These are the 5 main differences between Credit Unions and Banks
Credit unions are purposefully established for the benefit of members therefore their structure when it comes to interest rates has to favor the members. This therefore means that interest rates will be much lower in comparison to banks which are mainly profit making institutions hence they are purposefully meant to serve the best interests of the shareholders.Banks typically charge interest rates that are between 4 and 10 times higher than what you would pay in a credit union. However, when it comes to online banks, they are believed to offer more competitive rates when compared to credit unions.

 

#2 The loan and credit card rates differ

The loan and credit card rates differ - These are the 5 main differences between Credit Unions and Banks
As we have established, credit unions generally offer similar products in the finance sector as compared to banks albeit at cheaper rates.If you are looking to take a car loan, a mortgage, a personal loan or a credit card then your credit union will offer you a better deal in comparison to your bank. Their percentage points on these products are at least two points lower.

 

#3 Their fees differ

Their fees differ - These are the 5 main differences between Credit Unions and Banks
Credit unions are known to have fewer fees when compared with national banks. As a matter of fact, most credit unions will not charge any fees for withdrawals, checks or electronic transactions. In addition, most accounts whether checking or savings will not require an account servicing charge or even a minimum operating balance. However, when it comes to banks, these costs are all inclusive and may increase your bank transactions by hundreds of dollars.

 

#4 Their loyalties to the customer differ

Their loyalties to the customer differ - These are the 5 main differences between Credit Unions and Banks
As we have established, banks are primarily business ventures with a loyalty to shareholders. This means that they are led by a desire to maximize profit therefore, services extended to the customers tend to be higher. Credit unions on the other hand are non-profit ventures established for the benefit of the members hence their loyalties are first to its members. This means that services will often be customer friendly.

 

#5 The quality of services differ

The quality of services differ - These are the 5 main differences between Credit Unions and Banks
Because of the small size of credit unions and the fact that they are community based financial institutions, the services they offer tend to be more personalized. In most cases, tellers will get to know their customers by name, therefore treating them as though they are dealing with a friend. Banks on the other hand serve millions of customers therefore the probability that a teller will recognize you is minimal. In fact, most banks have introduced ATMs as a way of limiting interaction between the banks and is customers.

It is therefore safe to conclude that credit unions are much better than banks. You ought to check them out.

 

 

Here are the pros and cons of credit unions 800x410 - Here are the pros and cons of credit unions

Here are the pros and cons of credit unions

Credit unions are finance institutions that essentially do almost all what banks do. Through a credit union you can get access to a savings, a checking or amoney markets account, as well as access to a personal or a car loan, a mortgage or a home equity loan. However, these credit unions are often much smaller institutions designed to serve small communities of people.

The process of choosing a credit union is somewhat similar to that of choosing a bank basically because you are always looking out for the financial institution that will offer you the best service, at the best rate and most importantly ensure your money stays safe.

Here are the pros and cons of a credit union.

 

#1 They are primarily not for profit institutions

They are primarily not for profit institutions - Here are the pros and cons of credit unions
Credit unions are primarily not for profit meaning their loyalty lies with the members who are the primary owners. This means that their services will always be structured for maximum benefit to the members. The disadvantage with this is that since they are not for profit, shareholders are not likely to get much value from their shares in the company in comparison similar shares in other profit making institutions.

 

#2 They are more flexible

They are more flexible - Here are the pros and cons of credit unions
In comparison to other financial institutions such as banks, credit unions are much more flexible in terms of their assessments before granting loans to customers. They are also more human in the way they handle customer bank accounts. This is owing to the fact that customers are actually shareholders. The only challenge with this is that credit unions often expose themselves to risks of default on payment by members because of leniency when doing credit checks.

 

#3 Branch and ATM locations are limited

Branch and ATM locations are limited - Here are the pros and cons of credit unions
Due to their small size, credit unions have a smaller branch and ATM network and this means they are only available in limited locations. This becomes an inconvenience especially if you need to access cash quick. However, some credit unions have solved this by incorporating an online portal that enables its members to carryout banking services from anywhere provided there is internet connectivity.

These may be referred to as cons but in actual sense, they do not affect your bottom line. The financial services you get from credit unions are much more beneficial and friendlier as compared to other financial institutions. What we mean is, these are not really cons in our opinion.

Let us know what you think about this piece.

7c7c744eea8c67f09227b42e3a3dd8fa - Here are the pros and cons of credit unions
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Credit 800x410 - Credit - What your score says about you

Credit – What your score says about you

If you have ever tried applying for a loan or a mortgage at a bank or a credit union, you are familiar with the term – creditscore. This is essentially a number that is generated by a computer after making calculations based on your credit history to determine whether you are eligible for a loan. This number is what a lender will use to decide whether or not to approve your loan application or what type of loan to give you.

Here are a few things you should be aware of about your credit scores.

 

The basics of credit scores

The basics of credit scores - Credit - What your score says about you
Basically credit scores are primarily meant to make decision making about lending easier for finance institutions. At the end of the day, a bank or a credit union needs an assurance that you will not default on the loan they intend to extend to you, so it makes sense for them to check your borrowing history to get an idea. Your credit score will paint a picture in terms of how much money you have borrower in the past and successfully repaid or defaulted on repaying.

 

The types of credit scores

The types of credit scores - Credit - What your score says about you
There are many credit scores currently in use each depended on the scoring model that is in use. The most common used score is FICO which is the preferred score for home and auto loans. This score looks at your debt amount Vis a Vis your past repayments. It is however worth noting that at the end of the day all these scores make the same calculations i.e. they try to predict whether or not you will repay the loan.

The scores basically summarize the following:

  • Payment history
  • Amounts owed
  • The length of credit
  • New credit
  • The type of credit

Since some people may not have a credit history, there are alternative credit scores that seek to find other insight on you such as your payment habits when it comes to your bills such as utilities and rent.

 

How can you find out what your credit score is?

How can you find out what your credit score is - Credit - What your score says about you
All US consumers are entitled to free credit under federal law therefore you can get your report from Experian, TransUnion and Equifax, which are credit reporting agencies. You could also ask for your score from your lender during the time you are making an application for a loan. Always be careful especially with regards to websites offering free scores because a good number of them may be scams or may offer you inaccurate information.

All in all, the best way to maintain a good credit score is to avoid debt.

We trust this was helpful information.

3 tips on how to open a credit union account 800x410 - 3 tips on how to open a credit union account

3 tips on how to open a credit union account

By now you probably know that credit unions are some of the best places to save money as well as get loans. They offer a number of free services such as free checking, and have very competitive rates for their savings accounts as well as loans.

A number of people have passed on the chance to open an account with a credit union because they feel intimidated by the process. Unknown to them is that the process is quite easy.

 

Here are 3 tips on how to open an account.

First: You have to play the field

You have to play the field - 3 tips on how to open a credit union account
Registering for membership to a credit union is often the first step to joining the union. You cannot enjoy its benefits if you are not a member. It is easy though. Generally, members of a credit union usually have something in common. You may be eligible to join the union because your employer has a relationship with it, the credit union belongs to the community you live in or your occupation may automatically entitle you to membership. These are just some of the things that may make you eligible to join the credit union but keep in mind there are many more. In most cases you will have several choices to choose from so be sure to choose a credit union that you feel is offering products and services that suit you and at a rate that best suits you.

 

Second: Make a modest deposit

Make a modest deposit - 3 tips on how to open a credit union account
Once you have made the decision to join a particular credit union, the account opening process is very straight forward. It’s as simple as walking in and filling out an application. Just like with any other application for a financial account, you have to provide your details such as Tax ID No. or your Social Security No., physical address, a valid identification document and of course the reason you think you are eligible to join. Membership starts the moment you purchase shares in the union which is done by a modest deposit. It mostly ranges between $5 and $10. Be aware that some credit unions may decide to check your credit history before opening your account.

 

Third: Start using your account

Start using your account - 3 tips on how to open a credit union account
We told you it was easy. You are now a member of the credit union and you now have access to all the services. If you are employed, it is much easier and convenient to have your employer directly deduct your union contributions from your paycheck. This means it goes directly hence lowering your chances of forgetting to make your deposits. You can also opt for electronic payments. Be sure to set up text or email alerts.

It is good to know that there are federally insured credit unions and these are the safest for you since your money is as safe as it would have been in a bank account.

What has been your experience with credit unions? We would love to hear from you.

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