Investor Definition | Types of Investors

Types of investors

It is recommended to distinguish passive and active investors. Passive investors tend to maximize their returns by minimizing their performance in the market. They try to avoid fees and hold their assets for a longer period. They do not try to profit from short-term market fluctuations. One of the types of passive investing is related to social trading. When using the platform for copytrading, an investor may profit by copying the actions of professional traders with the best performance. It helps him/her to create a good portfolio and make a stable income. On the other hand, active investors focus on short-term opportunities and open more trades within the short term. Their market decisions involve more risks, than the actions of a passive investor. It is also worth mentioning that active investing requires a more prominent education to succeed. However, if an active investor is familiar with technical and fundamental analysis and sticks to a reasonable risk-reward ratio, he/she may get higher returns compared to a passive investor.

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2023-05-08 • Updated

Frequently asked questions

How to start trading?

If you are 18+ years old, you can join FBS and begin your FX journey. To trade, you need a brokerage account and sufficient knowledge on how assets behave in the financial markets. Start with studying the basics with our free educational materials and creating an FBS account. You may want to test the environment with virtual money with a Demo account. Once you are ready, enter the real market and trade to succeed.
How to open an FBS account?

Click the 'Open account' button on our website and proceed to the Trader Area. Before you can start trading, pass a profile verification. Confirm your email and phone number, get your ID verified. This procedure guarantees the safety of your funds and identity. Once you are done with all the checks, go to the preferred trading platform, and start trading.
How to withdraw the money you earned with FBS?

The procedure is very straightforward. Go to the Withdrawal page on the website or the Finances section of the FBS Trader Area and access Withdrawal. You can get the earned money via the same payment system that you used for depositing. In case you funded the account via various methods, withdraw your profit via the same methods in the ratio according to the deposited sums.