How do I start investing with only $25?

I am new to stock trading and I have $25 on a TD Ameritrade Account that I can use for stock trading. Is $25 too small of an amount to begin investing with? What should I look out for when trading with such a small amount? Should my orders initially be market orders or limit orders? What are some tips for earning a return when investing with this amount?

Investing, Stocks, Starting Out
Answers
Sort By:
Most Helpful
November 2017

Yes, I think so.  TDA charges $6.95 per trade.  Thus the commission on your first trade will eat up more than 25% of your portfolio.  The return you can earn on $25 isn't going to make a difference in your life anyway.

Every month, when you sit down to pay your bills -- rent, utilities, credit cards etc. -- make a point of "paying yourself" too.  Put a set amount away into that TDA account.  Get into the habit of living without $100 or $200 every month.  Then as you start to earn more, increase the monthly deposit.  Pretty soon you'll have some real money. 

In addition, if your employer offers it, get enrolled in a 401(k) and put away money every month tax-deferred.  Take advantage of your company match, if there is one.  Between retirement savings and regular savings, your goal should be to have 20 times your annual living needs (after Social Security) by the time you retire.

November 2017
December 2017
December 2017
December 2017