Invezz is an independent platform with the goal of helping users achieve financial freedom. In order to fund our work, we partner with advertisers who may pay to be displayed in certain positions on certain pages, or may compensate us for referring users to their services. While our reviews and assessments of each product are independent and unbiased, the order in which brands are presented and the placement of offers may be impacted and some of the links on this page may be affiliate links from which we earn a commission. The order in which products and services appear on Invezz does not represent an endorsement from us, and please be aware that there may be other platforms available to you than the products and services that appear on our website. Read more about how we make money >
How to Invest in Royalties in 2025
In this guide
Trade your favourite markets with our top-rated broker, .
CFD service. 82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
This information is NOT relevant to EU residents who are to be serviced by EU subsidiaries of the Plus500 Group, such as Plus500CY Ltd, authorised by CySEC (Reg. 250/14). Different regulatory requirements apply in Europe such as leverage limitations and bonus restrictions.
Investors seeking portfolio diversification and passive income streams can turn to royalties investing as an alternative to traditional investments like stocks or bonds. Royalties provide exposure to various asset classes such as intellectual property, natural resources, and even music and entertainment.
Use this comprehensive guide to learn more about royalty investing. Discover the different types of royalties available, their associated risks, and the potential rewards they offer. Our expert team has also evaluated the best platforms and marketplaces for royalty investments so you can learn how to invest in royalties today.
What are the best royalty investing platforms?
Copy link to sectionThe platforms below are the top royalty investing marketplaces. Our team of investing experts carefully selected them after rigorous evaluation and testing. Click any of the links below to invest in royalties now, or keep scrolling to learn more.
Plus500
CFD service. 82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
This information is NOT relevant to EU residents who are to be serviced by EU subsidiaries of the Plus500 Group, such as Plus500CY Ltd, authorised by CySEC (Reg. 250/14). Different regulatory requirements apply in Europe such as leverage limitations and bonus restrictions.
51% of retail CFD accounts lose money. Your capital is at risk.
Top royalties platforms, reviewed
Copy link to sectionWe found 4 online brokers for users based in
1. Plus500. Best for international trading*
Copy link to section
Overview
We love Plus500 because it is one of the industry’s most transparent and reliable brokers. Its fees are clear and you’ll know exactly what you will be paying before you trade. Its technology driven platform gives access to futures for a range of instruments, including forex, commodities, and cryptocurrencies among several others.
Plus500 has something for all types of traders, no matter what level of experience. Its low margin requirements (starting at $20) and different contracts make it a top choice for day traders. At the same time, its trading academy is packed with educational content, perfect for beginners just starting.
For accurate instrument availability, visit plus500.com.
The fees: Plus500 charges a commission of $0.49 per Micro contract and $0.89 per Standard contract (per side). There is an Auto-Liquidation fee of $10 per contract. Other exchange fees may be applicable and can be found on the CME group website.
*Based on a comparison of 60+ leading brokers and trading platforms.
Highlights
| No. of tradable assets | 2800+ |
| Min. Deposit | $100 |
| ID verification required | Yes |
| Free demo account | Yes |
| Supported assets | Stock CFDs, ETF CFDs, Forex CFDs, Crypto CFDs, Index CFDs, Commodity CFDs |
| Mobile trading app | Yes |
| Web trading platform | Yes |
| Regulatory bodies | FSA, ASIC, FMA, FCA, CySEC |
Fees & Costs
| Trading fees | No |
| Inactivity fees | Yes |
| Rollover/overnight fees | Yes |
| Withdrawal fees | No |
| Spreads | Yes |
| Conversion fees | Yes |
Pros & Cons
Buy or sell stock CFDs with Plus500. 82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
2. eToro. Best for beginners, copy-trading & demo-account
Copy link to section
Overview
We love eToro because it’s a trading platform built with beginners and casual traders in mind. The platform combines an interactive, social trading experience with an easy-to-use interface, making it ideal for novice traders.
The far-reaching catalog of more than 5,500 stocks and ETFs includes big names like Apple and Tesla, as well as smaller companies with high growth potential. You can start trading with as little as $10 using fractional shares if you’re on a tight budget.
One feature we particularly appreciate is the ability to interact with eToro’s 35 million users on any asset, market, or portfolio page. If you find traders whose strategies match your risk tolerance, you can copy their portfolios automatically using eToro’s flagship copy trading functionality. This is a great way to learn and potentially benefit from the expertise of more experienced traders.
If you don’t feel comfortable investing your cash straight away, you can use a free demo account, credited with $100,000 virtual dollars. This offers plenty of opportunities to try out a trading strategy that works for you across stocks, crypto, and options trading markets.
Highlights
| No. of tradable assets | 3600+ |
| Min. Deposit | $100 |
| ID verification required | Yes |
| Free demo account | Yes |
| Supported assets | Stock CFDs, ETF CFDs, Forex CFDs, Crypto CFDs, Index CFDs, Commodity CFDs, NFTs |
| Mobile trading app | Yes |
| Web trading platform | Yes |
| Regulatory bodies | ASIC, FCA, CySEC, FinCEN |
Fees & Costs
| Trading fees | Yes, on certain assets |
| Inactivity fees | Yes |
| Rollover/overnight fees | Yes, on CFDs |
| Withdrawal fees | Yes |
| Spreads | Yes, on certain assets |
| Conversion fees | Yes, for non-USD currencies |
Pros & Cons
eToro offers real assets only, no CFD products. eToro securities trading offered by eToro USA Securities, Inc. (‘the BD”), member of FINRA and SIPC. Investing involves risk, and content is provided for educational purposes only, does not imply a recommendation, and is not a guarantee of future performance. Invezz.com is not an affiliate and may be compensated if you access certain products or services offered by the BD.
3. Public. Best for AI analysis
Copy link to section
Overview
We love Public because it makes use of cutting-edge AI technology to enhance your trading and investing experience. Public’s AI-powered feature, Public Alpha offers personalized insights and recommendations through its natural language interface in real time.
Public’s AI technology helps you make more informed decisions by analyzing massive amounts of data and providing actionable insights. These AI-driven insights are easily accessible and give users access to the latest advancements in financial analysis and trading.
Not only do can you use AI to help your investments, Public is one of the lowest cost brokerage firms out there. You can invest in stocks and ETFs commission free. You can also buy and trade fractional shares and if you want to diversify, you can explore a range of alternative investments including music and film royalties.
The fees: There are no fees for investing in stocks during regular trading hours in the US – 9.30am-4pm EST. There is a $2.99 fee for trades outside of regular hours.
Highlights
| No. of tradable assets | 9,000 + |
| Min. Deposit | $20 |
| ID verification required | Yes |
| Free demo account | No |
| Supported assets | Stocks, ETFs, Crypto, , , |
| Mobile trading app | Yes |
| Web trading platform | Yes |
| Regulatory bodies | SEC, FINRA, SIPC |
Fees & Costs
| Trading fees | Yes |
| Inactivity fees | Yes |
| Rollover/overnight fees | No |
| Withdrawal fees | No |
| Spreads | Yes |
| Conversion fees | Yes |
Pros & Cons
What are royalties?
Copy link to sectionRoyalties are payments made to the owners or creators of certain assets. Royalty payments are recurring (rather than one-off) and represent a form of passive income. Royalties allow individuals or entities to earn a share of the revenue generated from the use or exploitation of these assets.
Traditionally, investing in royalties was reserved for high-net-worth individuals or institutions. However, thanks to online trading platforms such as Public, the ability to invest in royalties is open to anyone. Royalty investments offer long-term growth potential, recurring revenue streams, portfolio diversification, and exposure to specific industries or asset classes.
There are lots of options when it comes to royalty investments. Investors can explore various ways to buy royalties such as investing in royalty income funds, directly buying royalties, or acquiring royalty interests in specific assets or properties. This can include purchasing music rights, buy song rights, buying and selling music, or buying music catalogues among others.
How do royalties work?
Copy link to sectionRoyalties are fairly simple to understand. A royalty is essentially a form of compensation paid to an owner or creator of an asset, based on the revenue generated from the use or exploitation of that asset. Here’s a quick breakdown of how royalties work:
- An asset is created. The first step is self-explanatory. An individual or entity creates or owns an asset. For example, a book, a song, or a natural resource like oil or gas.
- The asset is licensed or leased. Next, the owner of the asset gives permission or a licence to a third party to exploit it in exchange for royalty payments. For example, a musician writes a song and then sells the rights to the song in exchange for regular royalties.
- Royalty agreement is established. A royalty agreement is a contract outlining the terms and conditions, including the royalty rate and payment schedule.
- The asset generates revenue. The third party now has to generate revenue on the asset through sales, licensing, or production. For example, a publishing company may sell copies of a book, earning revenue from book sales.
- Royalties are paid. The owner of the asset receives a percentage of the revenue generated. For instance, a book author may receive a 10% royalty each time a book is sold.
One of the easiest ways to understand royalties is from the music industry. For example, if a songwriter creates and owns the rights to a song, they can license or sell those rights to a record label or publisher. When the song is played on the radio, streamed online, or sold, the songwriter earns a royalty income based on the revenue generated.
Investors can earn money from royalties without having to create an asset. This can be done by using a royalty marketplace or platform like Public. Here, you simply buy a stake in a royalty-generating asset and collect payments at regular intervals. Our guide below explains exactly how to invest in royalties.
Types of royalty investments
Copy link to sectionThere are many different types of royalty investments you can buy. Here are some common options and a brief explanation:
- Oil and gas royalties. You can invest in royalty income from oil and gas wells through purchasing rights or interests in existing wells. When you learn how to buy oil royalties you will earn a percentage of the revenue generated from the sale of these resources.
- Music royalties. Many people first think of royalties as buying music rights. Investors can earn royalty income from the sale, streaming, or public performance of musical works by purchasing music catalogs or music royalties.
- Book royalties. Book royalties are another popular royalty-earning option. Authors and publishers can sell royalty interests in their works and investors can buy these royalties to earn a share of the revenue from book sales.
- Patent royalties. Inventors and companies can generate royalty income by licensing their intellectual property (IP) to others. Investors can buy royalties in patents to share IP revenue.
- Trademark royalties. Like patent royalties, trademarks can generate royalty income. A company can license trademarks to investors, who can earn a share of revenue.
- Software royalties. Investors can investigate how to invest in tech royalties or how to invest in crypto tech royalties to invest in software, applications, or blockchain-based technologies.
- Renewable energy royalties. Like oil and gas royalties, renewable energy royalties allow investors to earn income from renewable energy projects such as wind turbines or solar farms.
- Mineral royalties. Mineral royalties let investors earn income from the production or sale of minerals such as coal, gold, and silver. Mineral royalties work in a similar way to oil royalties.
- Entertainment royalties. The entertainment industry is vast and goes beyond music. Investors can gain exposure royalty investments in television shows, movies, and other forms of entertainment by acquiring rights to the IP or revenue streams.
How to invest in royalties – step by step guide
Copy link to sectionThanks to the growing number of royalty platforms, it has never been easier to make royalty investments. Use our guide below to learn how to invest in royalty income in 2025.
Step 1. Choose a type of royalty
Copy link to sectionThere is a wide range of royalty income investments available so the first step is to consider your options. It’s often a good idea to stick to an industry or area where you have some expertise.
Also, certain types of royalty income are better suited for long term investing so decide how long you want to invest. Our guide above explains the types of royalties available.
Step 2. Select a royalty exchange and create an account
Copy link to sectionNow that you know what type of royalty investment you’re interested in, it’s time to find an exchange or royalty marketplace. We recommend Public as the best royalty investment platform. Here you can find a wide selection of royalty options suited to all types and levels of investors.
Before you proceed, you’ll need to create an account. This is usually a quick process but you may need to pass KYC checks so keep some form of identification with you during the signup process.
Step 3. Make your royalty investment
Copy link to sectionNow you’re ready to make your royalty investment. To do this just log into your account and navigate to the royalty section of your dashboard. Here you will be able to see the available royalty investments. Click on the one you want to buy and enter the amount of money you want to invest and click the buy button.
Step 4. Monitor your investment and collect your payments
Copy link to sectionIt’s a good idea to stay on top of your royalty investments by regularly checking in. Most royalty platforms take care of all payments for you, so you will receive your income at regular intervals, usually monthly or quarterly. Some platforms allow you to automatically reinvest your dividends.
What are the risks of royalty investing?
Copy link to sectionLike any type of investment, the main risk of investing in royalties is losing money. Royalties are considered alternative investments, which means the risks associated with them are heightened. However, that doesn’t mean investing in royalties is not a suitable option, especially if you’re looking to add diversification and passive income to your portfolio.
Here’s a quick look at a few more risks and advantages of investing in royalties:
Pros
Copy link to section- Buy and sell fractional shares of royalties
- Low minimum investment and barrier to entry
- Earn passive income
- Add diversification to your portfolio
- Yields are generally higher than other investments
Cons
Copy link to sectionWhat are the fees when you buy royalties?
Copy link to sectionWhen you buy royalties or invest in royalty income, the fees you’ll be required to pay can vary depending on the platform you use. When using a trusted alternative investment platform, or royalty marketplace, many fees are built into the purchase price. For example, you won’t have to worry about legal fees for drafting contracts and conducting due diligence.
You will have to pay brokerage fees and commissions, which will vary on the platform you use. Many royalty investments involve ongoing administrative fees charged by the managing entity or platform to cover operations and management costs. These recurring fees can be a fixed amount or a percentage of the royalty income generated.
Bottom line
Copy link to sectionLearning how to invest in royalty income can offer opportunities for diversification and passive income for your portfolio. Royalty income is considered an alternative investment, so it’s recommended to allocate only a small portion of your portfolio to it. With so many types of ways you can get royalties, it’s important to take your time before investing.
One of the most popular ways is investing in oil and gas royalties, which often offer stability compared to other markets. However, suppose you learn how to invest in music royalties, how to invest in tech royalties, or how to invest in crypto tech royalties. In that case, you’ll be able to further diversify your royalty investments.