To invest a small amount of real money, find a large company that pays good dividends and sign up for a direct investment program, or betteryet, a dividend reinvestment program (DRIP). Every time the company pays dividends, it will instead credit your account with the fraction of a share your dividend money would buy. When those fractions have dripped up enough to add up to more than one share, they are converted to the appropriate number of real shares, the remaining fraction remains, and the process continues.
Prefer companies headquartered where you live, and attend shareholders' meetings to see how sausage is really made.
Also, depending on the tax laws of your country, you may avoid paying taxes on the dividends if you designate this account as one of several tax-sheltered types, eg. an Individual Retirement Account (IRA), or a 529 college savings account, though they may be called differently where you live.
At the same time, nothing can stop you from paper-trading stocks, bonds, mutual funds, ETF, pork bellies, futures, the lottery, and the most exotic Asian and Bermudan options you can find.Keep a detailed accounting, including all costs and fees, and you'll know how much you would make or lose.
None. You could lose the lot with forex and stocks. Why don't you save more money say $1,000 and invest in an etf such as the Vanguard S&P 500. You sound like a novice so I want you to understand that money can easily be lost. You need to know what you are doing.
I would do forex. Im opening to blowing 300$ just to learn more about it.
Stocks are easy. You could get started right now with a site like loyal3. You wont make much money with stocks, and you can play around with it for a few weeks and see what happens.
If you have only $300 to start with then forex is an easier option for you as you'd be trading on margin so you'd be taking bigger positions (make sure you understand the risks of leverage and margined trading).
but before you even start... ask yourself: "What do I know about forex trading and stocks?" if you can't show much knowledge then you should go to your local bar and spend the money on booze as you'll have much more fun and adrenalin :)
Forex deal with spread betting which is a little bit risky. I'd look at penny shares for oil, wheat and tobacco companys. Bear in mind each transaction will cost you a small share dealing fee so maybe just pick 3 companies to invest in rather than for instance 6 or 8.
long positions in stocks, mutual funds. FX can be extremely volatile and dangerous to get into if you don't know what you'redoing, especially since forward contracts often require only a 10% margin, so if you're on the wrong end of the trade, and it's very likely you will be, you'll be screwed. Talk to a financial adviser. Unless you're ding it because you're interested in it, I'd let a financial professional handle it for you.
S&P 500 index fund with the lowest possible cost. Make sure it is in a IRA if you plan on making this a long term investment. Then invest monthly what you can afford even 50-100 a month will add up over time.
It is your choice. Both options have risks involved. whether stock or forex, start with a small amount so that loss if any will not put you in trouble. Once you gain confidence, you can increase the amount.
Mutual funds. Invest $25 a week from age 25 to 65 and you will average 1.6 million at retirement. Never invest in single stocks.
Neither. Save up until you have sufficient cash to open a mutual fund account. Then you can contribute to it as you are able with NO fees. Forex and stocks will kill you on brokerage fees.
I can only start with up to $300. What is best to start investing in with this small amount? Forex or stocks?
