How Much Money Is Needed To Start Investing In Stocks?

| December 4, 2010 | 3 Comments

One of the most common questions about investing is: How much money is needed to start investing in stocks?

how much money needed for stock investing

The problem is many people want to start investing in stocks, but give up because they find out that it’s harder than it seems and that it requires more capital than what they have.

The fact about stock investing is that it requires more capital that you need for something like a unit trust, because of the larger commissions involved, and the higher cost per unit. This is especially true if you are thinking of trading regularly, versus holding your stocks for the longer term.

What people usually do is to save their money in normal savings account first, for a few months. This allows them to build up a larger pool of capital, which they can then use to invest with. A typical amount to start is something usually larger than $2000.

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Category: Learn to Invest & Trade

About the Author ()

John Tan has been Vice President of BlueTrust Investments Corporation for 6 years since the mid-90’s. He has since moved on, to be a professional full-time trader.

Comments (3)

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  1. Hoang says:

    Which websites can I go through for free reseach reports on macro and micro issues for stock decision making?

  2. Stanley says:

    One bank in Singapore offers an investment account without minimum commission fee. I think that’s a good choice for new investors. They can invest ETFs listed on SGX (a little boring, though, much safer and easier than cent stocks). However, by using that account, securities are under the Bank’s custody instead of CDP, but I see there’s no other difference except that.

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