The Paris Bourse is known as the largest financial index in France, and is also called the CAC40. It is important not only in European indices but also worldwide, and behind only the British (FTSE 1000) and Germans (DAX 30).
Can I earn money by investing in the CAC 40? Stay with us to find out!
This brief introduction will certainly not be enough to understand how to invest in this stock index, but stick with us and we will explain everything to you. First of all, you cannot invest directly on the Paris stock exchange. You should invest in the FRA 40 and not the CAC 40, because it is a stock market index, useful for understanding how the market behaves, but it is not tradable. All you need to do is choose a suitable contract for difference (CFD) and you can start trading immediately.
Read also: How to buy shares on the stock market?
Need a stockbroker?
Yes, you need an intermediary to be able to invest in products like stocks, these intermediaries are known as brokers. We have taken a very careful look at how different brokers are performing in the market, thinking about platform fees, platform security, and the range of products available. We eventually found out that the best broker to start trading with is eToro. To read a more complete analysis, you can go to the CAC 40 lists.
Out of all the brokers out there, as we said, we believe eToro is absolutely the best in its class. Here’s how to start investing through this broker:
1- Create an account
By going to the official eToro platform, you can immediately complete the registration process, without too much hassle if you pay attention to the instructions provided.
2- Profile verification
Verifying your profile is an essential step before you can start trading online. The eToro team will get back to you in due course if there are any issues, but if you’ve followed the previous step carefully, nothing should happen.
3 – First deposit
Now you need to make your first deposit with eToro, remember that it is one of the cheapest brokerage platform to start trading. Thanks to eToro, I was able to start investing in the CAC40 and then profit from the Paris stock exchange, which we can define as a gold mine of the online financial market. To make your first deposit, you can use almost any existing payment method.
4 – Choose FRA40
eToro uses a myriad of possible currencies, singly or in pairs, but what you need to select is FRA40. To be able to then trade online, we recommend that you deepen your knowledge via the site mentioned above.
In conclusion, we believe that trading on the CAC 40 is the revolution of 2021, and that anyone interested in online trading should at least try to make a few attempts at trading on this stock index, as the possibilities for enrichment are really numerous, even for the most inexperienced.
Read also: The different ways to invest in stocks on the stock market