How to invest without risk?

Risk and investing are inextricably linked: the outcome is unknown and there is always a chance that you will lose your investment. Nevertheless, it is possible to invest entirely without risk. With some brokers, you can try out trading completely free by means of a demo. When you lose the money, it is not as bad since you do not lose anything yourself.

100% risk-free investing

Risk-free investing: it is possible! Brokers make free demos available to engage customers. This is not surprising in itself: more customers means more profit. Each time a transaction is executed, the broker earns a small amount of money. The more people end up investing with the broker, the more they earn in the long run.

With a demo, you will experience one on one what it would be like in real life when you start investing. Do you want to try this way of investing? Then use the button below to see what the best demos are for risk-free trading:


Can you invest money without risk?

Many people are looking for a way to invest their money entirely without risk. This is understandable: losing money does not feel good at all. Nevertheless, risk and return are inevitably linked. The reason you receive returns is that you run the risk of losing a large part of your deposit.

But did you know that not investing is also risky? Because of inflation, the prices of all investment products rise every year. The savings rate is not high enough to compensate for this. If you do not invest, you are guaranteed to lose money. When you do invest, you at least have a chance of making money.

However, you should remember that when investing the focus should not be on avoiding risk: investing without risk is an illusion. The focus should be on investing with the lowest possible risk. But how can you reduce your investment risk?

zonder risico beleggen

How to reduce risks?

When you start gambling on the stock market, you have a 50% chance that you will make the right decision. After all, the price can go in two directions: up and down. However, by taking into account several factors, you can increase this percentage. This makes it possible to make a profit in more than 50% of the cases.

You can predict the stock price with some certainty by considering the news and price developments. For example, for shares a profit warning can be a good reason for a sharply falling price. In addition, pay attention to the price developments within the chart and see how the price reacts to certain levels.

By responding smartly to new developments, you could increase your trading profitability and lower your risk. By building in another clever trick, you can reduce the risks even further.

How to manage risks?

It is possible to make a profit while you are right in less than 50% of the cases. You can do this by ensuring a favourable ratio between your risk (or maximum loss) and your target price.

For this, you can set a stop loss (on which you automatically take your loss) and move it on a daily basis when the stock price develops in your favour. As an example, you could move the stop loss to the lowest price of the day.

By applying this strategy, you ensure that a profitable investment yields more on average than a loss-making investment would cost. In the end, you can greatly reduce the risk of investing, but investing without risk is unfortunately impossible. 

Choose a risk profile that suits you

When you start investing, it is advisable to first determine your risk profile. The risk profile indicates how much risk you are willing to take. Young investors often have more space to take risks, as there is more time to wait for recovery.

Many investment profiles are divided into risk classes: they range from offensive to defensive. Offensive risk profiles are much riskier: offensive investments are for example investments in emerging markets.

Before you start investing, it is advisable to think carefully about your risk appetite. Determine on which risk level you can still sleep well: this is often a risk level that fits you well.

In the long term, the risk decreases

It is important to remember that investment risks decrease in the long term. For example, stocks are very volatile in the short term. In the long term, the economy grows: by shifting your focus to the long term, you increase the chances of a good investment result.

Depositing regularly

If you want to invest with low risk, it is wise to make regular deposits. This way you avoid investing your money only at the top of the market. It is also important to invest only with money that you can really miss. That way you invest at least without the risk of truly getting into trouble.

What are low-risk investments?

Not every investment product has a similar risk. It is therefore wise to investigate carefully whether the investment product you want to invest in is a good fit for you. In the article on the relationship between risk and return we discuss the risks of various investment products.

In this part of the article, we briefly look at some lower-risk investment options. Keep in mind that you can always try investing in these products without risk through a demo.

In an index fund

The most popular option for people who want to invest without risk is an investment in an index fund. An index fund follows a basket of stocks. It is a very passive way of investing where you do not have to make many decisions yourself.

If you want to invest in an index fund, it is wise to step in staggered. Deposit a fixed amount every month and do not look at your investment on a regular basis. That way you can build up a nice amount in the long term.

A good party where you can invest in index funds is DEGIRO. At DEGIRO you do not pay purchase & selling costs on funds that are included in the core selection. Use the button below to open an account directly with DEGIRO:



Bonds are also seen as a low-risk investment. Some people even think that government bonds are entirely risk-free. However, this is not entirely true: the price of a bond can still fluctuate greatly.

A bond is a debt. With a bond, you lend money to another party. Even with fluctuating rates, you know that you will receive the same amount back at the end of the term. However, low long-term interest rates have caused the yield on bonds to drop sharply.

Do you want to know exactly how investing in bonds works? Then read our article on investing in bonds:


Stable stocks

Some stocks also have relatively low risk. Remember that stocks are never completely risk-free. The prices can fluctuate considerably and in the short term you can definitely lose money.

However, by buying stocks in a stable company with a long history, you reduce the likelihood of losing your entire investment. Stable stocks often grow less quickly, but offer a relatively stable and secure return. These types of shares are perfect for the novice investor who is looking for an investment with little risk!

Do you want to know how best to buy stocks? We published a comprehensive guide that teaches you exactly how to buy shares:


Useful links: start trading directly!

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