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how much money is a good amount to start with when investing?
I want to invest in stocks, but how much should I start with?
4 Answers
- Anonymous1 decade agoFavorite Answer
Due to brokerage commission, the absolute minimum is about $500 but a more practical minimum is about $1000. Figure it this way. It costs at least $7.00 in brokerage commissions to buy a stock. On a $1000 purchase that is 0.7% but on a $500 purchase 1.4% Another way to look at it is the chunk it would take out of your earnings on a round trip. Say you bought 100 shares at $10.00 each and sold them at $12.00 each. Your gross return would be $200, but after commissions only $186. Actually, just a tad less, so brokerage commissions would take 7% of your profit.
- Anonymous1 decade ago
start with 500.. most online broker requires 500 or more to open an account. Personally, I think Sogotrade is best among all online brokerages. You can get a lot of free trades: about 100 free trades with 500 minimum deposits. It has very good customer services, it also has live help, and you can chat with representatives about any question. After that, only 3 dollar for each trade, pretty sweet when compared with other online brokerages.
Referral code: 453934
- Anonymous1 decade ago
if you want a feel of the markets, and not serious investing, i would say $25
you can open an account and trade currencies at oanda.
google it. they don't offer more than 50:1 leverage, so as a newbie your account will last for a long time.
this will just give you an idea of how charts work and you can practice technical analysis
i believe you should combine technicals and the fundamentals. look for undervalued stocks that are in a good technical pattern.
- Anonymous1 decade ago
If you are serious to invest and have no intention to lose your money, you can google for HSFX Asset Management and start making consistent profits!