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If your savings have been lying idle in the bank, do yourself a favor and do these sums. How much would you have 20 years from now, taking into account the prevailing interest rate? Now, what if you put aside half that amount into investments that grow by a conservative 7% every year?

It becomes obvious that everyone must have some form of investment for retirement planning and investing online is one of the most convenient ways to do so.

Let's take a look at some of the available options.

1. Stocks - this is the most traditional investment vehicle for people investing online today. Stocks allow you to own shares of a company and depending on the company performance, you might get regular payments known as dividends. To trade stock, you need to pay the entire share price as well as a small fee to your broker known as a commission.

2. Options - this is a contract that allows you to purchase or sell stock at a pre-determined price. However, options are normally traded and seldom exercised. The advantage of trading options is that they usually cost a lot less to purchase and their value can increase drastically based on a small movement of the stock price. The downside is that options contracts expire after a pre-determined period of time, making your investment totally worthless if not exercised. Brokers usually charge commissions whenever options are traded.

3. Foreign Exchange - this is essentially trading currencies of two different countries with forex traders speculating that one currency will be strong and the other weak. Forex trading has many advantages such as high volume, high leverage, and you don't have to pay any commissions. The foreign exchange market is the largest market in the world, and you can start off with as little as $50.

No matter which investment vehicle you choose, investing online is an excellent opportunity for individuals such as ourselves to create wealth beyond what can be earned through a normal job, and it would be a pity if these opportunities are not taken.

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