For many new investors something which often worries them is "how much money do I need?" To start investing you will probably be surprised to discover that you don’t really need anywhere near as much money as you may at first think. In fact to answer the question "how much money do I need to start investing?" the answer could be as low as twenty five dollars if you are going to make regular payments into your investment plan. "How much money do I need to start investing?" in reality of course depends on exactly what kind of investment you are going to make. If you are looking to make small regular savings each month then you should consider mutual funds. That way the amount you require to start will be very low but you will already have begun your investment portfolio and can built from there.
With these smaller payments you do need to consider very carefully the charges that you will incur especially with annual minimum balance fees. If you have decided to start your investments with a lump sum then the minimum amount you need will vary depending on a couple of factors. Firstly you will need to decide whether or not you require a full service broker or whether you feel confident of making your own investment decisions. If you feel that you would like the reassurance of having a full service broker then you will generally find that they are looking for you to invest between $3,000 and $5,000 minimum.
There are a few however that will consider acting for you with a minimum balance of just $1,000 providing you are prepared to search around. Online brokers offering a cut price service where you are responsible for your own investments will often let you open accounts with amounts as low as $500. These will obviously enable you to get a start in the market much more easily but you do need to be confident in your own decisions. Whether you go for the online brokerages or the full service option you do need to keep in mind that each trade will incur a fee.
These fees will of course have a disproportionately large effect on your account if you only have small amounts invested. So please remember to allow for them when deciding on the answer to "how much money do I need to start investing?"
Howard Martell is the Owner of http://HomeProfitCoach.com/firstclass . Check us out anytime for marketing tips and a free subscription to our cutting edge newsletter.