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How to Invest $150 a Month into Multiple Stocks

Wondering how to invest $150 a month into multiple stocks? It is said time and time again that if you are going to invest in the stock market for the long term you need to invest in many different stocks to diversify.

It used to take thousands of dollars to do this, however that was then this is now. It is now possible to invest a small amount of money, say $150 a month into a widely diversified stock market portfolio.

So, how is this possible? Well, you have to follow these steps.

Open Up An Investment Account

Before you invest into the stock market you have to open up an account with a large broker. Normally it takes between $2,000-$5,000 to open up an account, but some have been getting ridiculously cheap.

Scotttrade for example will let you open up an account for $500. If you only have $150 in investable cash you can easily save that up in just a few months.

Another even cheaper alternative is Zecco. This small broker has lowered their minimum from $2,500 to $0. You can officially open a stock trading account with no money to fund it! Talk about cheap.

Once more they allow you to place a certain number of trades each month free. If you are only making one or two investments a month you can get away without spending a dime on commissions.

Buying Multiple Stocks

Ok, so how do you go about buying multiple stocks with just a small amount of money to invest with? Simple, ETFs. These funds allow an investor to buy multiple stocks at the same time.

The most popular long term investment ETF happens to be the SPY. This ETF tracks the top 500 companies in the US. So investing into it is the equivalent of investing into the top 500 companies in America, you don’t need any more diversification then that.

There are other ETFs such as the DIA and QQQQ which can help you to invest in multiple stocks as well, but the SPY is considered to be the best.

In Conclusion

Just because you are just getting started does not mean you will not be able to invest into stocks. If you have any disposable money a month at all, take advantage of the market. You will find out just how powerful it can be.

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