The Benefits of Opening a Brokerage Account with Limited Funds
The Benefits of Opening a Brokerage Account with Limited Funds
You've probably heard that investing is important to build wealth. But if you don't have a lot of extra money in your checking account, you may be hesitant to actually get started with investing. It's natural to assume you need a large sum to open a brokerage account and start putting your money into the market -- especially if you think investing is something rich people do.
The reality, though, is that it is absolutely worth opening a brokerage account even if you have only a little bit to invest now or for the foreseeable future. Here's why.
Many brokerage accounts make it easy to invest with very little money
- Opening an account with a discount online broker isn't something you need a lot of money to do.
- Many brokers have no minimum balance requirements and charge no commission fees.
- Some brokers offer fractional shares, allowing you to buy stocks and ETFs with hardly any money.
Your small investments can add up over time
- Get your money working for you and benefit from compound growth.
- Even small investments can lead to significant returns over the long term.
- Develop your knowledge and increase contributions over time.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.