I used to think that when I was ready to start investing, it meant to see a financial planner at a local financial institution and hand over my money and expect that I would be able to retire one day. After realizing that my returns were not meeting my financial goals because I wasn’t given the right advice, I took accountability for my money. I started investing on my own after doing a lot of research.
It can be as simple as putting money into the S&P 500 (top 500 companies in America, think Amazon, Apple, Costco etc.) or as complex as tailoring your selection to your unique situation of having selected ETFs and stocks to hedge risk. Consider suitability for your circumstances and do your research.
To get started, one of the first things I did was looking for the right brokerage.
What is an Online Brokerage?
An online broker lets you buy and sell stocks within your trading account. This method of buying and selling stocks is more cost-effective than a traditional brokerage. Before deciding on a brokerage, something to consider is to clarify your financial goals are and what you want to get out of the trading platform.
If you are starting, what you value will be different from someone with experience. It’s beneficial to research which platform will serve you best as there could be account minimums and inactivity fees.
What to look for would depend on what matters to you. Some examples of what brokerages are known for:
o Low fees
o Customer service
o Research
o A passive investing approach
What Do I Use?
I wanted a brokerage that had minimal fees. I mentioned in this post that I was paying a 2% portfolio management fee. While fees shouldn’t dominate your investing decisions, they play a role in how much money you get to keep.
Which is why I used Questrade, there are no fees charged for tax-free savings accounts (TFSA) or registered retirement savings plans (RRSP) and considerably low trading fees. The platform is relatively easy to learn and use.
For those brand new to trading and have many questions, Questrade will cover necessary information that can you can find under Resources & Support, Help & How-To. The blog has useful information; however, it isn’t search-friendly, and you will scroll for a long time.
On the Questrade website, webinars are available to everyone for free.
Get Started with Questrade
The Bottom Line
It’s possible to invest when starting with a small amount of money. You need to do your research in finding minimum deposit requirements, the commissions and fees associated with each trade, and decide on which broker you would like to open an account.
I hope you found this post helpful on how to you can start investing with little money online.
Thanks for reading,
Michelle
