Beginners seeking cheap day trading opportunities have more alternatives than ever before given the new, inexpensive ways to invest for people all over the globe. Here we will look at a few of the ways investing has expanded to the lowest capital levels imaginable. We will answer questions about low capital requirements, no- or low-fee accounts, and minimum trade sizes.
What Is the Minimum Capital Level Needed to Invest Today
Surprisingly enough the lowest amount of money needed to begin investing today ranges somewhere between $100-$250 these days. That represents the minimum deposit required to open an account at most of the absolute bare-bones cheap day trading brokers. While clearly such low dollar amounts are not likely to be sufficient to make money in the stock market – there are in fact platforms where low funding accounts can still be efficient enough to work for individuals of small resources.
How Cheap Day Trading Is Made Possible with No or Low Fees
One of the largest barriers to entry in the stock market is transaction fees. The fixed amount of cost to make a single transaction in most accounts is what prevents people of few assets from getting ahead with a traditional account. While an eight dollar ($4 to buy and same to then sell – about the lowest cost you will find in a traditional account) fee on a $500 trade may not sound like much, that represents 1.6% – more than the vast majority of securities moves in a given session. This makes it practically impossible for someone of little means to make money in the stock market.
Other alternative platforms available in the world today offer better cost / benefit opportunities for people of limited means. One of the reasons for this is the elimination of fees on certain types of accounts. The lack of set or fixed price costs per trade eliminates the biggest hurdle for people trying to grind out a living on the cheap day trading. Investors using these systems are less likely to be trapped in capital-intensive investments due to the entry / exit costs and can instead focus their attention on profitability of their positions.
What Is the Minimum Trade Size to Be Profitable
These days (depending on where you live and how much you need in income daily) it is possible to be profitable making trades online as small as five dollars. Obviously not ever security in the world is available to buy in such small quantities but I was certainly surprised to learn that there were in fact platforms which would allow such small increment investments.