One of the misconceptions that many have about investing is that it is hard to do. Perhaps 25 or 30 years ago investing was a little more complicated (and expensive), but today it’s not that way at all. The cost of investing has dropped dramatically in recent years, and it’s easy to trade shares online, buying and selling with the help of one of numerous online brokers.
Get Started with Online Trading
Learning how to buy shares online requires only that you start out with a few dollars. Many online brokers allow you to open an account for free, with no minimum. If you have 25 dollars and an interesting in earning a better return for your money, it’s fairly easy to get started. Most online brokers can help you establish an online trading account in less than 15 minutes. You will probably need to link a bank account, providing a source of funding for your brokerage account, but that transaction can usually be completed within three to four business days.
Most online brokers, like E*TRADE, offer easy to use platforms that allow you to intuitively buy and sell shares. If you are concerned about stock picking (buying shares of individual companies), you can choose to invest in funds. Buying funds of shares is also usually very straightforward when you trade through a reputable online broker. You get instant diversity when you invest in funds, which means you don’t have to worry about what happens if you put all of your eggs in one basket. Start with an all-market type of fund, and your performance is tied to how the market does overall, rather than how well a single company does.
There are also a number of investment options that are low-cost. From brokers that have low, flat-fee commissions, to ETFs with expense ratios of as little as 0.4 per cent, there are a number of affordable choices.
When you get started with trading shares online, it’s important to be consistent. These days, brokers are set up so that you can buy partial shares of companies and funds. This means that even if all you do is invest 25 dollars a week, you can still start adding to your portfolio. You don’t need a lot of money to start; all you need is consistency.
While you probably won’t get rich by investing just 25 dollars a week, it still makes sense to get started. You can earn a modest return over time, putting the power of compound returns to work for you as early as possible. As you begin to earn more money, or free up more assets, you can increase the amount of money you invest.
There is no need to think that you can’t invest. The reality is that almost anyone can open an online account and begin to trade shares online. If you have 25 dollars and an Internet connection, you can begin to trade online. Choose a major, reputable broker, and the process is simple and secure.
In reality, there is no better way to build wealth than investing. The good news is that it’s not just for those with vast capital resources anymore. You can start investing almost immediately.