Thursday, 02 July, 2020

Micro investing for beginners


Beginner's guide to the best micro-investing

So, today Micro investing for beginners is our topic. The biggest bank in Australia at the Commonwealth Bank, so you can invest as little as $50 in the stock market with a brokerage fee as small as two dollars up to amounts of a thousand after that it’s 0.2% that’s really cheap compared to what you’d normally get. When you’re investing in the stock market, which is a minimal investment of $500 and brokerage fees somewhere between you. You know ten and thirty dollars, which makes it really hard for people. Just starting out to get investing, they don’t want to lose 500 bucks, if they’re just having a play around .

How Micro investing for beginners

It doesn’t actually invest your money into stocks, as you might think. It invest your money and finance into an exchange-traded fund like in ETF. An ETF is basically a bundle of stocks put together into one fund and then listed on a stock exchange. These ETFs are then bought and sold just like ordinary stocks but instead of investing in one company as you might. You invest in shares, you’re investing in a whole bunch of companies what I like about this that is that it’s really easy to use it’s a really sleek design.

I first downloaded it and jumped on it a couple of days ago. It took me about ten minutes of playing before I really got the hang of it.Let’s go into the COMSEC pocket app, so when I first opened it. It opens my last investment, which in this case was the sustainability leaders ETF. I’m a millennial but if you scroll down, here to explore more investments. This is where you can find all your other options. So, you’ve got the Aussie top 280 F. Here are the dividends there are the other options but if we go back to the first one, the Ozzy top 200 ETF what I like is you can see. Here exactly what ETF it is, you can see the price per unit $27 83 and then when you click on explore. It takes you to a few more details. So, you can see what companies the ETF is holding and then you can see its performance and returns over one year two years and all time, if you like which is great so in the last year.

I can see that it returns eleven point six four percent, which is pretty decent and then down. Here if you’re ready to invest in this ETF. You click here and you can see, here what the minimal investment is going to be. So, in this case, it’s sixty one dollars COMSEC pocket says that you can invest as little as fifty but there’s only really a couple of ETS in here that let you invest for around $50. So, for this one the minimum is 61 and I’m going to invest 70 which is approximately two units. if I like I can invest it as a regular investment. I can set it as a regular investment, click next and then I get the option of choosing fortnight or monthly payments .

So, if I choose monthly, I can select a day. It’s the tenth maybe that’s the day. I get paid and continue it reminds you of what’s going to happen and then you get a final screen showing you the investment amount what your fees are and what days this money’s going to be coming out. If I click here that will set that up as a regular investment and voila. You’ve invested in the stock market. So, it’s as easy as that there are a few micro investing apps that are doing similar things to contact pocket. The one that really comes to mind is raise, the difference between contact pocket and raise is that while contact pocket. Lets you invest into an individual. A TF raise actually pulled your money into a fund of ETFs just like a fund within a fund, it’s like the inception of the stock market.

The COMSEC pocket, lets you invest in seven different ETF themes raise. Lets you invest in six different portfolios made up of different ETFs. These range from low risk conservative all the way to the more aggressive depending on what types of ETFs are in the funds. So, they also invest your funds differently, where COMSEC pocket allows you to invest $50 at a time and to an ETF of your choice with raise. You can also invest a lump sum but it also collects spare change as you spend a spare change connected to your debit card when you make purchases and invest that in $5 increments into the fund.

You’re basically investing amounts, as small as $5 fees are also kind of different with both platforms. So with COMSEC pocket, you’re not charged a monthly fee that you are charged $2 brokerage every time. You place a trade, so with braze, you’re not charged a brokerage fee but you are charged a monthly fee of two dollars 50 a month. It can add up, it really comes down to how often you plan to use concept pocket. If you intend to make trades regularly say may be twice a month that’s $2 per trade $4 a month that ends up being a pretty high brokerage fee at the end of the year. You might have been better off going with raised.

Micro investing for beginners

If you intend to place one big trade of say a thousand bucks a year then concept pocket definitely has an advantage over raise in terms of fees but it really all comes down to your preference do you prefer say raised to handle your MA and to manage your funds into a pool of ATF’s and they can make the decisions or do you prefer to kind of own your own investments like with COMSEC pocket look at it and you can see what atf you’re trading with and you get all the information that you want do I want risky or aggressive or do I really like this ETF do I really like this Aussie stocks ETF what I really like is that it’s upfront about where it puts your money it gives you these really easy to understand themes but it also goes into detail about what the ETF is about its performance over several years and it informs you about what your risks are so when you go to place a trade .

When you go to invest it reminds you that you should pay off any debts before you invest in this ETF I love that I’d like to contribute small amounts frequently you can contribute or you can invest twice a month or week invest monthly but at the end of the day that’s ultimately a really bad strategy because your brokerage fee goes up to a much higher amount than if you just invested a single lump sum the other thing is that there’s just too few options for my liking so if you’re interested in investing in more than just these ETFs or if you’re interested in investing in stocks then there might be something better else out there for you who knows they might be adding a few more ETFs to COMSEC pocket .

We’ll have to keep an eye out the fees are really low compared to others on the market. There’s no inactivity fee or monthly fee, which is great for new investors. It’s a really great way to get new investors or newbie investors interested in the stock market and that’s a big green tick for me. So, our review of contact pocket what did you think, would you use the app and what do you think of the ETS that they’re providing as well would you invest in them.

Copyright © 2020 by www.goodfinanceday.com - All rights reserved.