INVESTMENT IN STOCKS 

Investing is a way to set aside money when you are busy with your life and have that money work for you in the future time. Investment means setting aside money now with the expectation of receiving more money in the future. The goal of investment is to put your money to work in one or more types of investment tools in the expectation of receiving and growing money over time. 
Investing is unlike consuming and in investing we grow money over time. However, investing also has been associated with risks of losses. Investing in the stock market is the most common way to get an idea of investment experience. 
Before investing, it is important to know what kind of investor you are. Some investors want to be active in managing their money’s growth, while others prefer to set it and then forget about it. More traditional online brokers allow you to invest in stocks, bonds, mutual funds, index funds, and exchange-traded funds. 
Online Brokers
 
Image source: bankrate.com
A broker can be full-service or discount. Full-service brokers give the full range of traditional brokerage services like financial advice for retirement, healthcare, and money-related things. They usually deal with higher net-worth clients. They can charge a lot of fees. This can include a percentage of your transactions, and a percentage of your assets that they manage. They can take the yearly membership fee also sometimes. The high fees that they take are justified as they give advice detailed to your needs. 
Discount brokers give tools to select and place their own transactions. Many of them also offer a ‘set it and forget it’ advisory approach. As financial services have progressed in the 21st century, online brokers have added more services like educational materials on their websites and mobile apps. In addition to this, there are many brokers with no (or low) minimum deposit restrictions, but you may face other restrictions. These can be certain fees being charged to accounts that don’t have a minimum deposit. This should be taken into consideration by investors if they want to invest in stocks. 

Robo-advisors
 
Image source: techfunnel.com
This approach and group of investment advisors came up after the 2008 financial crisis. This was given by Jon Stein and Eli Broverman. They belong to a company Betterment. Their approach was to use technology to lower costs for investors. They also aimed at streamlining investment advice.
After Betterment launched its robo-advisors approach, many online brokers like Charles Schwab have added their own Robo-like advisory services. 

Investing through your employer
 
Image source: proservice.com
If you are on a budget, try to invest at least 1% of your salary into the retirement plan which is available to you at work. The truth is that even this amount would be helpful. This will make the contribution even less painful. When you get used to the 1% contribution, maybe you can increase it as you get more. 
If you have a 401(k) retirement account at work, then you may be investing in your future already with allocations to mutual funds. And also, your own company’s stock. 

Minimums to open an account
 
Image source: istockphoto.com
Many financial institutions have a minimum deposit thing. Putting it differently, you need to deposit a certain amount of money so that your account application gets accepted. Some firms don’t even allow you to open an account with a small sum even like $1,000. 

Commissions and fees 
 
Image source: trade.education.com
Though many brokers have been racing to lesser down or eliminate commissions on trades, but still all brokers have to make money from their customers one way or another. Also, ETFs offer index investing to everyone who can trade with a bare-bones brokerage account. 
Your broker will charge a commission. This will happen every time you trade stock. Also, this is applicable to buying or selling. However, some brokers charge no trade commissions at all. But also, they make up for it in a different way. There are no charitable organizations that run brokerage services. 
Depending on how often you trade, these fees can have an effect on your profitability. Investing in stocks can be very costly if you constantly keep changing your positions frequently, especially with a small amount of money available to invest. 
The trade is an order to purchase or sell shares. If you want to purchase five different stocks at the same time, this would be seen as doing five different trades, and you will be charged for each one. 

Diversification: A way to reduce risks
 
Image source: ebrary.net
By investing in a range of assets, you reduce the risk of one investment’s performance hurting the returns of your overall investment. In terms of diversification, the biggest difficulty in doing this will come from investment in stocks. This is where the major benefits of mutual funds or ETFs come. 

Conclusion
 
Image source: economictimes.indiatimes.com
The easiest way to buy stocks is from an online stockbroker. After opening and funding your account, you can buy stocks from the broker’s website in minutes. There are other options as well like using a full-service stockbroker or buying stock directly from the company. You can even start investing in the stock market with as less as $10. This is all because of zero-fee brokerages and fractional shares. For this, you need to develop an investing strategy, choose an investing style, use index fund investing, buy and sell individual stocks, buy and hold quality stocks and ETFs, and contribute money consistently. You can invest in the US stock market even if you are a foreigner. Investing is a way to keep money and set aside money while you are busy with life. This money serves you in the future. It is different from consuming. Investing in stock markets is risky also, so, one should be careful while investing in the stock market. However, investing in the stock market is the most common way for beginners to get a hang of investment. 


By Bhawna