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Self-directed investing and passive investing

Self-directed investing and passive investing

Passive investing can be a good way to get exposed to the capital markets as a beginner and of course - it is not risk-free. However, some investors decide to take matters into their own hands. That is when self-directed investing comes into place.

Ben Reynolds from Sure Dividend gave a quick thought about the differences between self-directed investing and passive investing below:

"Investors who have an interest in analyzing businesses and stocks would be well served to look into self-directed investing into individual securities rather than passive investing.  For some people, finding quality investment opportunities in the stock market is a rewarding use of time.  It can be intellectually rewarding as well as financially rewarding.

For investors who are looking for broad market returns and who do not want to spend their time analyzing stocks, passive investing is certainly the preferred choice."

-Ben Reynolds, Sure Dividend

Self-directed investing and passive investing
Where to look for more?

Hope you liked this quick rundown on index funds. If you'd like to see more, navigate to one of the articles below:

Author of this article

Bence András Rózsa

Author of this article

Bence András Rózsa is an experienced broker analyst. Having an MSc in international economy and finance, he focuses on equities, cryptos and newcomer financial services. He also has 2+ years of experience within the brokerage industry specializing in stock- and CFD/forex brokers, crypto providers and robo-advisors.

Bence András Rózsa

Broker Analyst

Bence András Rózsa is an experienced broker analyst. Having an MSc in international economy and finance, he focuses on equities, cryptos and newcomer financial services. He also has 2+ years of experience within the brokerage industry specializing in stock- and CFD/forex brokers, crypto providers and robo-advisors.

Everything you find on BrokerChooser is based on reliable data and unbiased information. We combine our 10+ years finance experience with readers feedback. Read more about our methodology

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