Frequently Asked Questions (FAQs)
Q: What's the minimum amount of money
I need to get started?
A: Now that it's possible to make trades
with commissions
as low as $3 per trade or even lower, it's getting easier
to start with a small amount of money. We personally started
out investing $50 a month in mutual funds. The problem was
we were paying an outrageous commission of 8.5%. I don't want
you to make the same mistake. In our beginner's portfolio,
we recommend mutual funds that only require an investment
of $50 a month. Not only that, their performance is great
and they don't charge any commissions.
For people wanting to invest in stocks,
we recommend investing at least $100 into each stock of one
of our stock
portfolios. Depending on the portfolio, that would be
roughly $2,000. If you use a discount
broker that charges $5 per trade (note: we recommend certain
brokers once you subscribe), your commissions to buy all of
the stocks in one of our stock portfolios will be less than
what many full-service brokers charge for just one
trade.
Always remember to only invest money
that will be in the market for the long haul; don't invest
funds that will be needed in the near future.
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