CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Between 54-87% of retail CFD accounts lose money. Based on 69 brokers who display this data. *Availability subject to regulation.
With climate change now the biggest threat to humanity, investors are increasingly aware of the importance, and rewards, of investing in stocks that have a positive environmental impact.
Leading the charge in sustainable investments is renewable and clean energy, which are driving the world’s vital transition from fossil-based fuels to a more sustainable approach.
Already a massive market valued at $928bn in 2017, the global renewable energy market is expected to reach around $1.5 trillion by 2025.
With renewable comprising a number of markets and technologies, such as solar, wind power, wave and ocean energy, biomass, geothermal and hydroelectric power, the opportunities to invest are vast.
However, intense competition and an over-saturation of players in the sector has affected the ability of some renewable energy firms to stay in the red. Therefore, investors should look at stocks that are actively growing their revenues and profitability.
One of these stocks is Arizona-based First Solar, the largest solar panel manufacturer in the US.
As the US continues to experience a solar boom, driven by continuing cost declines, First Solar is reaping the rewards.
The firm has expanded its operations with a second factory in Ohio and has managed to turn its fortunes around by announcing positive net income of over $30m in the third quarter of 2019, compared to a loss of $18.5m earlier in the year.
The company, which has seen its share price steadily climb from $42 at the start of 2019 to $52 as of November 1, also landed a huge 1.7-gigawatt order to supply projects in Texas and California, with deliveries beginning in late 2020.
Italian firm Enel Power Company, is also one to watch. With a global presence covering Europe, the Americas, Asia, Africa and Oceania, the energy giant won the first ever renewable energy tender in India via its subsidiary BLP Energy, and is expected to invest $290bn in the construction of the wind farm to expand its holdings in the lucrative Indian renewable energy market.
Investors can trade renewable and clean energy stocks online through a number of channels including buying individual stocks and green bonds.
However, with so many companies to choose from it can be hard to distinguish those that hold real value from those that will take a nose-dive at the first sign of trouble.
There are a number of ways around this for those investors that aren’t confident enough in, or don’t have the time to do their own sufficient research. The most obvious for some would be to use an exchange traded fund.
Another option are the Etoro Copy Portfolios, which allow investors to create a portfolio of stocks based on the success of previous traders and include companies leading the movement in solar energy, waste, recycling, wood fiber, electrical infrastructure, battery charging and clean transportation.
These companies include First solar and Enel, as well as other big hitters such as NextEra Energy, Pattern Energy Group, Covanta Holdings, China Longyuan, Nordex, and Vestas Wind Systems.
An additional benefit to using a regulated broker is that they are subject to a set of rules laid down by the Financial Conduct Authority.
Ambitious climate change targets, stringent government regulations and volatile fossil fuel prices are just some of the factors driving the green energy market.
According to the International Energy Agency, the share of renewables in meeting global energy demand is expected to grow by one-fifth to reach over 12% in 2023.
While growth in regions like the Middle East are expected to be slower due to the cost-effective nature of fossil fuels in these areas, many countries are seeking to propel the use of renewable energies.
In the UK, for example, the government wants renewables to make up 20% of all energy supply by 2020.
Meanwhile, China has upped its renewable target from 20% to 35% by 2030.
Due to population rises and industrialisation in developing countries such as India and China, Asia-Pacific is expected to witness the fastest growth in green energy over the coming years.
Chinese stocks include Xinyi Solar Holdings, which produces and sells solar glass products. With a market cap of nearly HK$37bn, the company is considered a stable bet. For example, Xinyi has consistently beaten the industry growth rate of 20%, achieving an average annual growth rate of 32% over the last few years.
Forex.com scored best in our review of the top brokers for clean energy stocks , which takes into account 120+ factors across eight categories. Here are some areas where Forex.com scored highly in:
Forex.com offers one way to tradeForex . If you wanted to trade EURUSD
The two most important categories in our rating system are the cost of trading and the broker’s trust score. To calculate a broker’s trust score, we take into account a range of factors, including their regulation history, years in business, liquidity provider etc.
Forex.com have a AAA trust score . This is largely down to them being regulated by Financial Conduct Authority, segregating client funds, being segregating client funds, being established for over 19
|Regulated by||Financial Conduct Authority|
|Uses tier 1 banks|
|Segregates client funds|
Want to see how Forex.com? We’ve compared their spreads, features, and key information below.
|USD/JPY Spread||0.90||DAX Spread||250.0|
|FTSE 100 Spread||150.0|
|Platform||MT4, Web Trader, NinjaTrader, Tablet & Mobile apps|
|Base currency options||USD, GBP, EUR|
|Funding options||Bank transfer, Cheque, DebitCard,|