What is a 'Minimum Deposit'

A minimum deposit is the minimum amount of money required to open an account with a broker, financial advisor or bank. It is sometimes called an initial deposit or, in the case of bank accounts, minimum balance.

BREAKING DOWN 'Minimum Deposit'

Minimum deposit amounts range from $0 to $10,000 or more in the U.S. and cover the baseline costs associated with setting up a new account and maintaining it thereafter.

Most of the bigger brokers will offer retail investors investment accounts that can be started with a modest minimum deposit. Some brokerage firms even offer accounts with no minimum deposit, so that investors can try out their trading platforms and research tools without having to fund their accounts.

Many robo advisors, which provide financial advice or investment management online with moderate to minimal human intervention, now have lower limits on deposits. Betterment has no account minimum at all.

Besides minimum deposits, there are many other factors to consider when picking a broker or investment manager, not least being brokerage fees and management fees.

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