5 Ways to Make Money Through Online Investing


The following 5 ways to make money online in this section are for those people who have money to invest or loan to others. So, these ways don’t require much time but they do require money and some are riskier, but the potential returns can be great.

Online investing can provide incredible returns on investment for very little of your time and enable you to accrue considerable wealth over time if all things work in your favour.

Online investing can also be very risky if you don’t do due diligence, don’t know or monitor your investments well enough and if you take too many risks.

The secret to success with online investing is to spread your risks across investments, perhaps making a few higher risk investments that offer the potential for high returns if things go well, but off-set these with some lower risk investments which have an almost guaranteed return even if the returns aren’t as favourable.


Lending money to individuals on sites like Zopa, RateSetter or similar.

Peer-to-peer lending, or P2P-lending, is the practice of lending money to individuals or small businesses through online services that match lenders directly with borrowers. Since P2P lending companies operate entirely online, they run at a lower overhead, therefore can afford to provide the service cheaper than traditional financial institutions. Thus, lenders often earn higher returns compared to savings and investment products offered by banks, while borrowers can borrow money at lower interest rates.

Professional or not, experienced or inexperienced, employed or unemployed, P2P lending can be done by anyone. However, it is important to note that P2P lending isn’t for everyone. Whilst it works well for many, returns (and indeed your capital) aren’t guaranteed. The primary risk is, of course, not being repaid. However, P2P is now regulated – the new rules states that P2P firms must present information clearly, be honest about risks and have plans ready in case things go wrong.

So, what’s the best P2P lending site? Well, the market’s developing fast and lots of new sites are popping up, however there’s currently a clear top three that make up much of the market and give the best returns. Zopa.com is one of the longest running P2P lending sites, with good rates and now works like a normal fixed-rate savings firm.

Zopa offers three products:

Access – which has projected annual returns of 3.5% after fees and bad debts.

Classic – 4.5% projected annual return but a 1% fee to withdraw funds.

Plus – which offers the highest rate of return (6.7% with a 1% withdraw fee).

Like a lot of things in life, the greater the risk the higher the return and that’s exactly how it works with Zopa. The first two products, Access and Classic, are both covered by its Safeguard risk fund whilst the Plus isn’t. The Safeguard fund effectively spreads the impact of bad debts across all its savers. In the background, your money’s spread across a mixed-risk basket of borrowers. Unless there’s a catastrophe, you should get what’s promised.

Another popular P2P site includes ratesetter.com. RateSetter is made to look and feel like normal savings for beginners, you choose your account and put cash in. One advantage of RateSetter over Zopa is it’s more customisable over rate. For example, if it suggests a market rate of 5% to you – if you wanted your money to be lent out quicker you could go for 4.8%, or if you were willing to wait you could see if it’d be matched at 5.2%. RateSetter also has a high customer satisfaction rate of 98%, and an impressive claim that not one of their ‘’57,233 individual investors has lost a penny of the £2,097,753,812 that has been lent’’ Past performance is not a guarantee of the future. However, it’s a track record they go out of their way to maintain.

Finally, is fundingcircle.com. Funding Circle is a leading marketplace with a focus exclusively on small businesses in the U.S and the U.K. This means they offer the highest rates – but also the biggest risk of bad debt. With Funding Circle, you have two choices, between bespoke lending and spreading the risk.

Bespoke lending is when you get a loan proposal and you personally access each business and whether you want to lend to it. Whereas spreading the risk is an easier option if you have less time (or simply no clue how to decide), as it’s an auto-bid system that simply spreads your money over a wide range of lenders. So, if one fails to repay, it won’t hit you too badly. Again, you choose your target interest rate – a higher rate means there’s likely to be a bigger risk of some failing to repay.


Trading in stocks and shares of larger public listed companies.

A share represents a ‘share’ of ownership in a company, which you can buy or sell. When you find a share to buy, you are essentially buying a small stake in a company, in other words, you become a joint-owner of the company along with all the other shareholders.

When looking to buy shares, the aim is for the shares to grow in value over time. Essentially, you are looking to buy a share when it’s low in price and then sell it later when the price increases to make a profit. However, with that comes the risk that you will lose your money if the company goes bust.

What makes stocks and shares so appealing is the fact that it’s one of the best long-term investments in the financial marketplace. They tend to outperform many other types of assets including government bonds, corporate bonds and property. What’s more, shares are designed to provide investors with two types of returns, annual income and long-term capital growth.

As we have already established, long-term capital growth simply refers to the value of the share increasing overtime – offering a profitable return. However, annual income comes in the forms of dividends, which are typically paid twice a year. Dividends are a reward for shareholders and are paid when a company is profitable and has cash in the bank.

It must be made clear that share prices can go down as well as up, so buying shares is never without risk. Buying shares is usually (this does vary) a long-term investment, so if you want to double your money in a year, buying shares is probably not the best way to do it. However, if you want to invest for 10 or 20 years, shares may be a rewarding investment.

Stock and shares open a whole new world of financial opportunities. If this sounds like something you’d be interested in, head on over to sites such as invest.com and cityindex.co.uk to get started today.


Loaning to small businesses to help them grow quicker.

Funding Circle is a leading marketplace with a focus exclusively on small businesses in the U.S and the U.K. This means they offer the highest rates – but also the biggest risk of bad debt. With Funding Circle, you have two choices, between bespoke lending and spreading the risk.

Bespoke lending is when you get a loan proposal and you personally access each business and whether you want to lend to it. Whereas spreading the risk is an easier option if you have less time (or simply no clue how to decide), as it’s an auto-bid system that simply spreads your money over a wide range of lenders. So, if one fails to repay, it won’t hit you too badly. Again, you choose your target interest rate – a higher rate means there’s likely to be a bigger risk of some failing to repay.

Personal money is money that you have, receive or borrow as an individual rather than under your business’s name. Examples include borrowing from your life savings, loans from friends or family members, consumer credit cards, personal loans, retirement funds and home equity loans or lines of credit.


Foreign exchange, commonly known as ‘Forex’ is the exchange of one currency to another at an agreed exchange price on the over-the-counter market. Forex is the largest market in the world, with an average turnover over $4 trillion USD a day.

Essentially, Forex trading is the act of simultaneously buying one currency while selling another. Currency values rise (appreciate) and fall (depreciate) against each other due to several factors including economics and geopolitics. The common goal of forex traders is to profit from these changes in the value of one currency against another by actively speculating on which way Forex prices are likely to turn in the future.

One of the key elements behind Forex’s popularity is the fact that the Forex market is open 24 hours a day. Unlike most financial markets, the Forex market has no physical location or central exchange but instead comprises of a global network of businesses, banks and individuals.

This means that currency prices are constantly fluctuating in value against each other, offering multiple trading opportunities. However, since it is the
existence of volatility within the Forex market that enables traders to take advantage of exchange rate fluctuations, traders must be aware that greater volatility also means greater risk potential.

Unlike the stock market, the Forex market revolves around more or less 8 major currencies. A narrow choice means no room for confusion, so even though the market is huge, it’s quite easy to get a clear picture of what’s happening.

Forex.com is perhaps the most obvious and recognised Forex trading website, with maximum value and reliability. However, if you are new to the Forex market, plus500.co.uk may be a better way to go. Upon sign up, they offer you a free demo account enabling you to learn how it works and test the waters before you go in and try it for yourself.

In summary, Forex trading isn’t a lightweight, easy-going money-making scheme. It requires time and effort to follow the exchange market, to learn the system and to make intelligent speculations. However, the returns are as high or low as you are willingly to risk and put in.


Matched betting is a betting technique used to profit from the free bets and incentives offered by bookmakers. It is generally considered risk-free as it is based on the application of a mathematical equation rather than chance. All bookies promote offers (especially during big sporting events) to entice new gamblers to place bets with them. We simply lace a bet at a bookmaker and then bet against the same outcome at a betting exchange. By covering all possible outcomes, we make guaranteed risk-free profits regardless of the result.

There are two parts to matched betting, back bets and lay bets. A back bet is when we bet on something to happen, like betting that Andy Murray will win Wimbledon. If our back-bet wins, we get our stake back plus our winnings. If our back bet loses, we lose our stake. A lay bet is when we bet against something happening, like betting that Andy Murray won’t win Wimbledon. If Murray doesn’t win Wimbledon, our lay bet wins because we bet that he wouldn’t win. If Murray does win Wimbledon, our lay bet has lost. We place lay bets to effectively ‘match’ our back bets and that’s where the term ‘matched betting’ comes from. So, if we bet on Murray to win at the bookmaker and then lay him to win at a betting exchange, the two bets cancel each other out but for a tiny loss.

The great thing about matched betting is that you can pretty much start with any budget, be it £50 or £500. If your starting budget is small, just start with the smaller sign up offers and build up a steady bankroll. The amount you can earn from matched betting depends on how much effort you are prepared to put in. The more time you can commit to matched betting, the more profit you can make, but even if you can only spare 20 minutes a day, you can easily earn over £400 a month.

If you’re willing to put the time and effort to learn the ropes of matched betting, then check out matchedbettingblog.com for a fully extensive guide. Or simply get started today, by signing up for an account at a betting exchange such as smarkets.com and betfair.com.

Author: Aliva Tripathy

Taking out time from a housewife life and contributing to AxiBook is a passion for me. I love doing this and gets mind filled with huge satisfaction with thoughtful feedbacks from you all. Do love caring for others and love sharing knowledge more than this.

Leave a Reply

Your email address will not be published. Required fields are marked *