EDUCATION
How to Invest in the Stock Market (for Beginners)
Why You Should Invest in The Stock Market
How Should I Invest as a Beginner?
How to Invest in Stocks
Step 1: Open a Brokerage Account
To start investing, you’ll need to open a brokerage account. A brokerage account is an investment account that allows you to buy and sell stocks. Opening a brokerage account is easy, quick, and free.
Popular Brokerages for Beginners
These platforms are more user-friendly and crafted for beginners (but have less advanced technical capabilities):
- Webull: https://a.webull.com/i/ClearValueTax
- Robinhood: https://robinhood.com/
Popular Brokerages for More Advanced Investors
- Charles Schwab: https://www.schwab.com/
- Interactive Brokers: https://www.interactivebrokers.com/
- E*Trade: https://us.etrade.com/home
Step 2: Fund Your Brokerage Account
Once you set-up your brokerage account, you will need to transfer money to your account.
All you have to do is link your bank account to your brokerage account, which you’ll generally do when you set-up your brokerage account.
Once your bank account and brokerage account are linked, you can send money and withdraw money between accounts quickly and for free.
Step 3: What to Invest in as a Beginner
Now that you have your brokerage account set up and funded, it’s time to decide what to invest in. As a beginner, one of the best ways to start is by investing in an S&P 500 ETF.
What’s an S&P 500 ETF?
The S&P 500 is a list of 500 big, successful U.S. companies like Apple, Amazon, and Microsoft. When you buy an S&P 500 ETF, you’re basically buying small parts of all these companies at once. This helps spread your money out (which means less risk) since it’s not all tied to one or two stocks.
Why Start with an S&P 500 ETF?
Think of it as a shortcut to building a balanced investment. Instead of picking individual stocks (which takes time and can be risky), an S&P 500 ETF gives you instant access to a wide range of top companies. Historically, the S&P 500 has grown about 10% per year, making it a steady way to grow your money over time.
How to Buy an S&P 500 ETF
In your brokerage account, search for a S&P 500 ETF (some of the most popular ones are SPY, IVV, VOO, and RSP). Pick one, enter how much you want to invest, and hit “buy.”
Resources
For more information on how to invest in the stock market, check out our step by step guide for beginners:
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EDUCATION
Financial Resources
Looking to expand your financial knowledge? We’ve taken the most popular topics and set up resources for you to succeed. You will acquire all the essential knowledge to excel in finance and establish a strong groundwork for your financial future.