What Is the Minimum to Start Investing in Stock?

by Geri Terzo ; Updated July 27, 2017
Investing even in small increments can help you reach your financial goals.

Depending on where and how money is invested, different account minimums may be required. Typically, investors purchase stocks and bonds through a broker and the minimum investment is outlined by this firm. Mutual funds also carry investment minimums, but there are ways to bypass minimums.

Brokers

A broker firm may have a minimum investment requirement to open an account. Some online brokers do not require minimum investments and any number of stocks can be purchased, but there is a brokerage fee. Some brokers waive the minimum investment if the investor holds a savings account with this firm.

Types

Some companies offer direct investment plans, which allows the investor to bypass investing through a stock broker. This eliminates the brokerage layer of fees but many companies require a minimum account balance, the amount of which will vary.

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Mutual Funds

Mutual funds are designed to be investor-friendly, and while there are account minimums, these amounts are often meant to be low and non-inhibiting. Despite low minimum requirements, investors do not always understand the fee structure of mutual funds and without proper due diligence may be surprised by unexpected charges, according to an article from The Associated Press.

About the Author

Geri Terzo is a business writer with more than 15 years of experience on Wall Street. Throughout her career, she has contributed to the two major cable business networks in segment production and chief-booking capacities and has reported for several major trade publications including "IDD Magazine," "Infrastructure Investor" and MandateWire of the "Financial Times." She works as a journalist who has contributed to The Motley Fool and InvestorPlace. Terzo is a graduate of Campbell University, where she earned a Bachelor of Arts in mass communication.

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