One of the biggest barriers people face when they want to get started in investing is the perception that they don’t have enough money to set aside in an investment portfolio. If you’re in a similar situation, then low-cost investment options are the perfect solution to help you build interest-accruing savings with minimal upfront monetary requirements. Take Stockpile, for instance, which allows investors to get started with as little as $5. Many of us can afford to invest $5-10 per month, though a platform as easy-to-use as Stockpile, you might find yourself investing more.
To learn more about how Stockpile works and whether or not it’s a good fit for your financial situation, check out what Stockpile has to offer:
Fractional Shares of Stocks
Investing in stocks has the potential for great rewards on your initial deposits, but what if you want to invest in a company with extraordinarily high stock prices? For instance, as of October 2017, Amazon’s stock price has exceeded the $1,000 mark.
For other investment programs, this would equate to a $1,000 minimum investment just to buy one stock, but for Stockpile, you can purchase fractional shares of over 1,000 different stocks and ETFs (such as Amazon, Apple, Google, Facebook, and Netflix) based on how much you can afford to invest at a given time.
All too often, people wait to start investing because they’re worried they don’t have “enough” money to start. However, you could be missing out on valuable opportunities for great returns while you’re sitting on the sidelines. This is why fractional shares of stocks are excellent options for anyone who wants to add more diversity to their portfolios, and Stockpile makes this easy with their low-fee trading options.
With Stockpile, each trade costs just $0.99. This means that, when you buy or sell a stock, ETF, or ADR, you’ll pay less than a dollar each time. There are no minimum balance requirements, no monthly account fees, free electronic transfers, and free cash transfers (except for domestic wire transfers, which cost $25). If you want to gift a stock to someone else, you’ll pay $2.99 for the first stock and $0.99 for each subsequent stock you purchase as a gift (as well as a 3% credit/debit card fee).
Redeeming gift cards for stocks is free (the fee is paid for by the person giving the gift), and you can even switch to a different stock for free. Considering how expensive other investment brokers can be when it comes to executing trades (even “low fee” platforms like E*Trade and Charles Schwab charge $6.95 and $4.95, respectively), Stockpile is one of the cheapest options available.
Funding Your Account
When you sign up for Stockpile and sync your checking account with your Stockpile account, you’ll be able to choose whether you want a 3-day transfer (free) or an instant transfer (works with most debit cards) for just $0.25. If you have additional questions about funding your account (or anything else related to using Stockpile), they have a nifty FAQ guide here.
How to Get Started
When you initially sign up for Stockpile, all you need is your name, email, and a strong password to get started. You’ll be asked to verify your email, choose an account type (individual or custodial, if you’re investing for a minor), then fill in other personal information (employment info, address, birthdate, Social Security number).
Once you complete this initial process, you’ll sync up one of your checking accounts (if you bank with a smaller institution that isn’t listed, you can do this manually – otherwise, you simply log in to your online banking account and verify via email or phone). At this point in the process, you’re now ready to start investing in stocks!
When you become a Stockpile member, you’ll be able to see how much cash is in your account (unallocated funds, waiting to be invested), as well as the historical and current performance of your Stockpile portfolio. You can adjust your monthly deposits, explore new companies and stock symbols based on research-driven analytics, and learn about new stock market developments, all from your Stockpile dashboard.
Should You Sign Up for Stockpile?
Although investing in bonds and mutual funds is generally a safer option for conservative/moderate investment portfolios, there are significant rewards associated with the higher risks of investing in stocks. No portfolio should be entirely comprised of stocks, but Stockpile makes it easy for investors who want more flexibility and options to partake in some of the biggest brands on the stock market for minimal costs.