Thread: Any tips for trading with low capital?

Results 1 to 5 of 5

  1. #1

    Default Any tips for trading with low capital?

    What is the best strategy for someone who can only afford to start out with <$500?

    It seems like commissions kill you unless you invest a lot. Even for a discount broker like trade king at $4.95.

    That's

    4.95x2 = $9.9 rounded to $10 that's a 5% loss if you invest $500. It's even worse if your broker is TD Ameritrade (which I use... for the tools mostly) where I spend $20 just on commissions. I've looked into penny stocks but the risk seems scary especially for a beginner (I have about a year of experience and I've done a lot of simulated trading.)
  2. #2
    AbbieLiger
    Guest

    Default

    I also looked into margin, but most firms require at least $2,500. Some even require $10,000. Heck some firms won't even let you open a CASH account with less than $500.
  3. #3

    Default

    There is a federal minimum requirement for margin accounts. I thought it was 2k$. There isn't much you can do w/ 500 without the fees eating you up pretty good. Maybe keep saving and work your td ameritrade paper trading account on thinkorswim to keep engaged and see how well you do with that.
  4. #4
    AchmedOt
    Guest

    Default

    May want to have a look at SureTrader. It's in the Bahamas and can get you around the PDT rules. It's not for everyone, but I have clients who use them and like the freedom it gives them on smaller accounts. 6 to 1 leverage to give you $3k buying power off $500. Of course if you lose more than $500, well you owe them.... Margin is risky especially if new to trading. So while having a SureTrader account and access to the leverage, doesn't mean you have to use it.
  5. #5

    Default

    You pretty much get what you pay for about anywhere you go. All of these places provide services etc. and need to make their money or cover expenses somewhere. To be honest I can't imagine any of them have much to gain servicing a 500$ account. There has to be some kind of benefit in it for them to make it worth doing. Have you spent much time paper trading?....that might be a good place to start so you can become familiar with the difficulties with having a small account.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts