If you have a $1000 that you want to start investing in the stock market, good for you! The problem that you are going to face is the fact that $1000 may not be enough if you are looking to get into the traditional stock markets of the world. You can start trading with only $1000, but it is going to be pretty hard to make it by yourself if you don’t know what you are doing.
It is incredibly easy to make the wrong call and ruin everything, losing your investment and a lot more too. Remember that in the stock market, starting with $1000 makes you a “small” investor.
The Different Types of Investors
The market is full of investors with varying interests and capital. In the broad spectrum, investors can be classified into three main groups: small, institutional and high net worth. Institutional investors are those who invest in stocks for a living, or as a profession. High net worth investors are those who have a lot of capital at their disposal. This is typically upwards of $750,000 in invested assets. A small investor, which is what you are going to be if your investment amount is $1000, is someone who trades for personal gain. For the most part, a small investor will only be able to invest in a limited number of assets because of the sheer cost of most assets.
Biggest Disadvantages of Traditional Trading
One major disadvantage for someone on a budget like yourself is the cost of trading in normal stocks. Most brokerage firms charge you higher percentage fees for your investments than they do investors with high net worth. This is because investors with more capital are able to negotiate lower fees due to their huge investment potential. This makes it terrible for you when you want to get into the trading game and make a profit, as you will usually be trying way too hard to break even each year.
The biggest question that needs to be asked here is why you are letting yourself come under so much stress and risk for such little in the way of rewards. There is no logical reason for you to be doing all this, when your $1000 could be put to great use elsewhere, working to earn you more profits than you ever deemed possible.
Binary Options are Here for You
If you don’t know what this is, it is binary trading:
- Binary options are an alternative to typical stocks that are a lot cheaper, safer and easier to work with.
- This type of trading is built to cater to the working class. Whereas in normal stock trading your $1000 would make it nearly impossible to make any good trades at all, in binary options you will be able to open Bronze tier accounts at some brokers.
- You will be able to gain access to a ton of educational material, high bonuses for your investments, epic withdrawal times, and access to hundreds of assets that you can trade for incredibly low prices.
The minimum deposit required to open an account at most binary brokers is about $250, although this can go lower to about $10 in some situations. Binary trading is all about low cost investments that work out really fast and allow the trader more control over their money. You predict whether an asset will rise or fall in value in a period of time. If you predicted it correctly, you get returns of up to 95% of your investment. There is literally no better way to invest your $1000 in trading than with binary options!