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Your answer is TDAmeritrade. No minimum balance and there are 100 free ETFs. ETFs won't swing as much as individual stocks but you will have something to track without paying anything.
I started that way years ago, and built upon over the years, and IMHO, it is an excellent way for anyone to start investing in one of the largest company's in the world.
If I were the OP, I'd pay off all credit card debts (or other consumer debts) first if you have them. That's an immediate and guaranteed after tax return of 18% or whatever interest rates you're paying on the cards. Then save up enough cash to build up a 6 month emergency fund. Only after you've done those 2 things should you even think about investing in equities. You can keep it simple and just pick an index mutual fund which provides instant diversification. If you are young (20s to 30s), just pick one of those target retirement funds that is appropriate for your age and risk appetite. Leave it alone and watch it compound. IMO, it is malpractice to tell someone who only has $50 dollars to start buying individual stocks.....without even knowing the person's overall financial picture.
If I were the OP, I'd pay off all credit card debts (or other consumer debts) first if you have them. That's an immediate and guaranteed after tax return of 18% or whatever interest rates you're paying on the cards. Then save up enough cash to build up a 6 month emergency fund. Only after you've done those 2 things should you even think about investing in equities. You can keep it simple and just pick an index mutual fund which provides instant diversification. If you are young (20s to 30s), just pick one of those target retirement funds that is appropriate for your age and risk appetite. Leave it alone and watch it compound. IMO, it is malpractice to tell someone who only has $50 dollars to start buying individual stocks.....without even knowing the person's overall financial picture.
Considering what little information the OP provided, I'm not sure any suggestions should be considered "malpractice"; they are just suggestions based on the OP wanting to begin investing with as little $50. Maybe he has $50 left over after all his bills are paid and simply wants to start investing for his future.
None of us know his overall financial posture and were simply providing suggestions; like you did. And like the previous suggestions, your suggestions should also be considered (except for the malpractice statement).
Last edited by marc515; 11-28-2012 at 08:18 AM..
Reason: Grammar
I started that way years ago, and built upon over the years, and IMHO, it is an excellent way for anyone to start investing in one of the largest company's in the world.
This is a very important post. Anyone can start investing in any of hundreds of companies, either thru sites like Computershare, or BYN Mellon. And many companies have their own monthly investing sites, such as Duke Energy or Dominion Utilities, where you can invest as little as $25 per month with no charge. The important thing is to START.
You do not need a lot of money to start investing in high quality companies. The hardest thing is just starting, and getting in the habit of doing it every month.
I hope this answer updates everything answered before. It is possible.. you can make big
Quote:
Originally Posted by ColorsOfMe
What is the best way to get started in investing with stocks, with very little money ($50)? I am much more interested in learning "how" to trade or invest at this point, then in worrying about the return. I did see some free online application about two weeks ago (can't remember the name of it) designed to teach people how to trade stocks, but it was useless to me. There wasn't really any sort of tutorial to go along with it.
in fact, 50 dollars is enough to get you a robin hood account which is free for stocks that cost more than a dollar. probably someone with more experience knows more about that. I just started.. so far just made a $5 dollars trading.
Why is a $50 investment a waste of his time you can invest what ever you can afford I have known people that have made money in penny stock that just started with very little money. I have made money just fooling around with little money the key is picking the right stock if you land a stock that gain 3000% over time you make money the key is making money no matter the amount you invest every one isn't going to get rich I don't care if you do invest $5000 if you pick the wrong stock it doesn't matter does it
What is the best way to get started in investing with stocks, with very little money ($50)? I am much more interested in learning "how" to trade or invest at this point, then in worrying about the return. I did see some free online application about two weeks ago (can't remember the name of it) designed to teach people how to trade stocks, but it was useless to me. There wasn't really any sort of tutorial to go along with it.
Honest answer: don't bother until you get $1,000 to open up an account.
Use the $50 to buy a couple of good investing books, I will recommend
One Up On Wall Street - Peter Lynch
The Intelligent Investor - Benjamin Graham (never read it myself, but it's high on everyone's 'great books' list.
The Snowball - Buffet's biography
That's a good use of $50 for now.
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I hope this answer updates everything answered before. It is possible.. you can make big
