How to Buy Stocks on a Budget

Money-Management-Buy-Stocks

Joanna Marie, Negosentro |  There are a million and one ways to make money although sometimes it seems so hard to make it. Aside from being employed and getting paid a salary, there are other stress-free ways to generate income. Selling products, monetizing a skill and trading or buying stocks and shares are just a few ways to generate more income. It is sometimes assumed that in order to do the latter you need a robust amount of capital; however, this certainly isn’t the case. To clarify, this article is going to look at a few different ways that you can buy sticks on a budget.

Acorns

One way that you can invest on a budget is by using Acorns. It works essentially by taking your leftovers from large purchases and putting it into an account. Every time you reach $5, they will then take that money and invest it in something. The service does cost $12 a year to use. However, that isn’t so bad for them to help you invest your money. Acorns are ideal as they’re simple and don’t require a great deal of money to start with. You could choose to invest more, and of course, that would increase your return on investment.

Buy Penny Stocks

Did you know that with as little as $5 you could buy stocks? These stocks are usually traded on the over-the-counter-market which generally consists of smaller businesses. You should be aware, however, that there is generally a lack of information that surrounds them which makes them most appropriate for experienced and highly skilled investors. It may also be suitable for you if you’re interested in high-risk. Alternatively, you could use penny stock brokers to help you invest as they’re more experienced and conversant in that area of investing. When choosing a broker, consider one who has shares available to short, one who has flat commission rates, and one that will not impose unfair trade limits.

Stockpile

Another way of buying stock on a budget is by using Stockpile. Through this, you get access to around 900 stocks and ETFs and the buy or sell trade price is as little as 99p. Another alternative they have is to buy gift cards which give you a fractional share of stock in a company when they’re redeemed. This is a great idea if you want to give someone shares as a gift whether it’s an adult or kids. Stockpile also has an app which is useful for first-time investors as it offers investment tips. It also makes buying stock convenient for the younger generation as they can be traded via their mobile phones.

You don’t necessarily need tons of money to buy stock. It is, however, true that the more money you have, the more you can do. With as little as $5 you can buy penny stocks, and with a little bit more there are other investments that you can add to your portfolio. What is more important is that you take calculated risks if you’re going to trade independently and if you’re going to use a broker use one who has your best interest in mind.