I want to start investing in the stock market but I don't have a large sum of money to start an account. Does anyone know of any websites that do not require a large amount of cash to start an account and get trading? I just don't have 2500 bucks to start an account at fidelity and I really want to experiment with the market just a bit. Not 2500 bucks worth. Thanks for the Help.
2007-03-07 03:11:09 · 4 answers · asked by Some Random Guy 3 in Business & Finance ➔ Investing
Go to www.sharebuilder.com. I have a small account there, and it's great. You can buy fractional shares because it works on dollar-based investing. You can save a nice tidy sum for emergencies or long-term goals. It will not make a good bank account for short-term saving. They typically charge $5 commission on buying stocks, but will charge $15 when you sell. So pick wisely on issues that will grow in the long-term and hold them.
If don't want to go the internet route, you can write or call the investor relations number of any corporation. Tell them you're a potential investor and you want a prospectus. They'll send some info and forms in the mail. If you want to start cheap, utilities and local power companies in many states offer good stock and reasonable prices, and of course, the energy market is always growing. Some sports franchises like baseball teams can be bought into this way, but they frequently want a high minimum that you said you wanted to avoid.
Not knowing anything else about you, keep in mind that it helps to be over 18 and have a reliable job before doing any kind of investing. Read all the books and internet articles you can, so you understand things like dollar-price averaging, price-earnings ratio, and the difference between dividend stock and capital gains stock. Also, don't plan on getting rich overnight. Getting rich overnight by playing the stock market is really difficult. Saving diligently over time, but dealing with your debts first, especially credit cards, will build wealth.
Skylor Williams
2007-03-07 03:26:16 · answer #1 · answered by skylor_williams 3 · 0⤊ 1⤋
I'd suggest opening a UK Spread Betting account (even if you are foreign). You can trade everything you would through a traditional broker and far more besides. So long as you use guaranteed stop losses, you can trade for as little as a Pound (or a Dollar) a point.
One thing I'd advise you to straight away is not to use 'trading' and 'investing' in the same breath. There is a world of difference between the two.
2007-03-07 11:19:35 · answer #2 · answered by Oliver T 3 · 1⤊ 0⤋
start with penny stocks you can buy a lot and not spend much but they can pay very well
2007-03-07 11:22:43 · answer #3 · answered by kelly 3 · 0⤊ 0⤋
E*Trade.
2007-03-08 00:13:36 · answer #4 · answered by Anonymous · 0⤊ 1⤋