Invest Small Amounts: How to start in 2022
Published: 10 January 2022 by Andrew
Investing is always a good idea but many think that it always takes large capital to start: is it possible to Invest Small Amounts?
Of course, it is possible to start investing small amounts and get more than decent results, even if you are inexperienced.
This guide explains in detail how to invest small amounts without risk and without making mistakes: we explain the basic principles of financial investments and point out the best platforms to invest, also suitable for beginners.
Among these platforms it is advisable to immediately report eToro.
It is true that there are several that are safe and also suitable for beginners (and we will present them later) but eToro has a unique feature: it allows you to copy, in a completely automatic way, what the best investors in the world do.
In this way, even a beginner has the opportunity to immediately obtain the same results as the best investment professionals. And, if he wants, he even has the opportunity to learn how to invest easily by observing live what the best are doing.You can sign up for free on eToro by clicking here
How to Invest Small Amounts
What does it mean to invest small amounts? First of all, we point out that we are referring to capitals between 10 and 1,000 euros, even if usually the sum that is used to start is equal to 250 euros.
With such small amounts, most investments are absolutely impossible: for example, you cannot make real estate investments with 250 euros and you can’t even start an economic activity.
The only investments that can be started even with small amounts are financial ones. In fact, it is possible to buy stocks, cryptocurrencies, currencies or commodities and obtain a financial profit when the price rises or falls.
The most suitable investment for those who have only small amounts to invest (or in any case do not want to risk large amounts) is represented by CFDs (contracts for difference).
It is a financial instrument that is particularly easy to understand and use, even for those who have never dealt with investments. Thanks to this tool it is possible to speculate on all the main financial markets.
The main advantage of CFDs is that they allow you to make a profit both when the market goes up and when the market goes down.
How is it possible? To give a concrete example, suppose we want to invest in Amazon shares. We can buy the CFD on Amazon to make money when the price goes up, or we can sell it short to make money when the price goes down.
Short selling is a purely speculative operation that serves precisely to obtain a profit when a financial security loses value.
It may seem complicated but it is not at all and the best apps for investing (which we will discuss shortly) also offer particularly useful support for beginners.
The advantage of investing with CFDs
We have already seen what is the main advantage that those who invest with CFDs get: they can make a profit on any stock both when it falls and when it rises.
The only requirement is to make a roughly reliable forecast on the price trend of that stock. Of course it is always possible to use eToro to automatically copy professional investors.
Other investing apps also offer support tools for those unable to make forecasts independently.
CFDs also have the advantage of allowing very short operations: for those who invest small amounts it is really important to be able to perform many operations that open and close in a short time (even better if they close in profit).
In addition, CFDs also offer the advantage of leverage: thanks to leverage, it is possible to make investments for a larger amount than the amount actually available.
The levels of financial leverage that can be used vary with respect to the security in which you invest. Investing apps can guarantee higher levels of leverage for experienced investors.
Finally, the best apps for investing with CFDs do not charge fixed commissions on transactions. Paying fixed commissions on a single transaction is really a bad idea for those who invest small amounts.
An example? Fineco applies a fixed commission of 7 euros on each operation, if you start with 250 euros you burn the capital entirely with just over 30 operations (assuming they close everything in profit).
Where to Invest Small Amounts
Which securities are suitable for investing small amounts? Here are the main categories to invest in:
Although they may seem completely different markets, in reality they behave in exactly the same way from the investor’s point of view.
In which market is it worth investing more? There is no one-size-fits-all answer. Indeed, many beginners easily solve the problem by using eToro to copy the best investors (who know very well which markets are really worth investing in).
Best Apps to invest small amounts with CFD
Up to now we have talked in theory about the best system for investing small amounts, CFDs. To invest with this tool, you need to use the services of an App (or investment platform).
We have collected the best apps to invest with CFDs that are also suitable for beginners. All the apps we have selected are easy to use and are also safe:
Min. Deposit: 50€
Min. Deposit: 100€
Min. Deposit: 50€
Min. Deposit: 250€
Min. Deposit: 100€
72.30% of retail CFD accounts lose money
Min. Deposit: 250€
eToro is a platform for small investments that has had a resounding success worldwide, having managed to collect more than 20 million satisfied customers in just a few years.
The great success of eToro is due to the fact that it is the only App for investing small amounts that allows you to copy, in a completely automatic way, what the best investors in the world do.
How is it possible? Thanks to the innovative Copy Trading System (developed by eToro and patented) it is possible to identify the investors who in the past have achieved the best results with the minimum risk.
The user can view a large number of information such as preferred markets, risk appetite, strategies used in the investor profile.
In any case, the data on profits obtained in the past is usually more than enough to make an intelligent choice: the user can select which investors he wants to copy and it will be the automatic software that will replicate all the operations in real time.
In other words, when the investor buys a security, the software will also buy it for the user. And the same when it sells.
The advantage for the user is twofold (and explains the success of eToro): he can obtain returns identical to those of the best professional investors in the world and he can also learn to invest by observing the best ones, since eToro also functions as a social network.You can sign up for free on eToro by clicking here
The minimum amount to start investing with eToro is 200 euros. However, it is possible to operate with a free demo, ie with virtual money, to gain experience and better understand the mechanism. In this case, there is no need to make any investments.
ForexTB is the other great option for those who want to start investing small amounts without the risk of making mistakes.
The platform is really simple and intuitive and there are no commissions or fixed costs. All subscribers are guided step by step by a trading expert who provides precise directions over the phone (literally step by step).
Those who want to learn more also have the opportunity to download an excellent course for free that explains how to invest small amounts.
The course is very much appreciated because it is completely free (registration is enough), easy to study even for a beginner and all practice oriented.You can download the ForexTB course for free by clicking here
We note that many paid courses cost too much (there are courses that cost more than 7,000 euros), are incomplete and often purely theoretical. Furthermore, these courses are typically very difficult for a beginner to study.
Among the other advantages of ForexTB, we remember a free demo, unlimited and without restrictions, particularly suitable for those who want to experience risk-free.You can sign up for free on ForexTB by clicking here
The minimum amount to invest with ForexTB is 250 euros. Those who choose to start in demo, of course, do not need to make any deposits.
Moneyfarm is a tool that allows you to invest, in a more or less simple way, in the financial markets using ETFs.
Some consider Moneyfarm a platform to invest small amounts but in reality it is not, since it still requires a minimum investment of 5,000 euros to get started.
Why invest small amounts?
Why do many people prefer to invest small amounts? In some cases it is simply due to the fact that you do not have a lot of money available. Especially young people make small investments because they have no other solution.
Some people decide to invest small amounts because they do not completely trust the App they use to invest.
It is good to point out that all the Apps we have mentioned in this article are absolutely safe because they are authorized and regulated. Are the European authorities that guarantee the safety of investments.
A smart motivation for investing small amounts is to make money: by making small investments you learn the basic mechanisms of the markets and therefore you are ready to make a higher investment.
Read also: Trading low minimum deposit
Those who want to invest small amounts today have the opportunity to do so with free apps such as eToro or ForexTB that allow you to make financial investments easily and safely, even without experience.
These are particularly intuitive applications; in the case of eToro, it is even possible to copy in a completely automatic way what the best investors in the world do.
This type of application is based on a financial instrument called CFD (Contracts for Difference) which has the following advantages:
- It allows you to invest in a stock and make a profit whether it increases in price or decreases
- There are no fixed commissions
- It is possible to carry out operations of very short duration
- It is possible to apply financial leverage
Probably eToro which allows you to automatically copy the best investors in the world.
The ideal tool is represented by CFDs (Contracts for Difference), which are intuitive and easy to use.