You have decided to start investing but you are having trouble to know where or how to open an investment account.
You think the financial world is very confusing with so many options out there, so where do you start, because this is really all very frustrating at the moment.
Ok, I hear you, opening an investment account can be complicated, so here are 3 things to help you understand that process and make it less puzzling for you. So here it is:
👉 How much money do I need to open in an investment account?
Some investment accounts have a minimum of $100, others much more. Shop around, plenty of cheap internet brokerage solutions these days. Still you will need to put some money that will be reserved only for this account so you can invest only into stocks and ETFs.
It’s not for paying your rent or buying your grocery. That money is going to be locked for some time, months, years, and at least 1-3 years to see some real results.
👉 Where am I going to invest that money into? Which stocks? Which ETFs? And how do I find them?
The brokerage house behind your investment account might give you some ideas where to invest once you open your account.
Be careful though, those ideas are often there to push you to buy and sell stocks frequently and pay them a commission each time, sometimes hidden commissions.
If your broker is claiming to be “free”, read the fine print and disclosure before you start buying all those stocks, because nothing is really free.
👉 Finally, you will need to read and sign a lot of regualory documents to open your account. Most of them are done electronically but it’s still a tedious process.
You will be asked about your level of financial knowledge, and the type of risks you want to take. Read everything carefully, and expect about 1h to review and complete the whole process.
Everyone, even investment professionals, has to go through that process. It’s the law. So don’t worry, it’s not only you.