What’s the minimum amount to invest in stocks?

In my opinion, the minimum amount to invest in stocks used to be about $500.
If you invested less, then the trading fees and taxes could have eaten into your profits so much that it almost wouldn’t be worth investing less than $500. But online brokerages started offering $0 trade fees. Therefore, if your online brokerage charges no trade fees, then there really isn’t a minimum amount needed to invest. You just need to have enough money to buy the amount of stock shares that you’re interested in.

If your brokerage does charge trade fees, then let me give you an example of why you would want to invest a minimum of around $500.

Let’s say you invest $500 into shares of a stock.
Let’s also say your trade fees are $6 to buy and $6 to sell.
If your stock goes up by a modest 2.5%, and you sell your stock, you have now made a gross profit of $12.50.

However, your trading fees were $6 to buy and $6 to sell for a total of $12.
Therefore, your net profit was 50 cents.
Without even considering possible tax that you may have to pay, you can quickly see that investing less than $500 is usually not worthwhile, unless you’re making a huge return.

I hope this info is helpful for you.

-Grant

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