Is $500 enough to get started when investing in shares?
Getting started with investing can seem a bit overwhelming, especially when you don’t even know where to begin. Not only that, but it can sometimes feel like you need to have loads of money to even think about starting—but is that true?
Let’s say you have $500 to start with. If you’re investing in the ASX (Australian Securities Exchange), you generally need this as a minimum to begin with, so that’s why it has been chosen.
So, let’s have a look at what you do with $500 and whether or not it’s enough to get started with.
What can I do with $500 when investing?
When looking to invest $500, it can seem like it wouldn’t be enough when you have giant stock prices in big tech companies and the like. However, if you value diversification, then investing this set amount in a managed fund or ETF (exchange traded fund) might be the kind of option that would be preferable.
Alternatively, you may want to invest in single stocks, however, it’s important to make sure that you do sufficient research before committing any cash. If you’re investing in the ASX, you’ll have to keep in mind the minimum investable amount. So. with only $500, you’re generally only going to get one company's shares!
If you’re investing in the US stock market, you usually don’t have the large minimum in trades like with the ASX as well as the ability to buy fractional shares.
Should I wait to invest a larger amount?
Just like with savings, the major benefits of compound interest come from regular deposits and time. So, if anything, a dollar cost averaging strategy where you contribute a regular portion of your income can be helpful.
What’s more, the $500 minimum for ASX shares is generally for your first time buying the share, with all subsequent minimum investments needing to only be the price of the share plus brokerage fees.
However, if you’re looking to invest in a couple of shares (on the ASX) at once, you may want to hold off until you have saved up enough to get all the shares you want at the same time. However, also remember that time in the market is also important.
How can a small amount add up over time?
Now $500 doesn’t seem like a lot when you get started with investing, but the most important thing is that you get started early. The number one reason for this is compound interest.
So, what is compound interest? Essentially, this is when the money you earn from shares (dividends) or a savings account (interest) increases the amount you earn the next time. Over time, this compounds from tiny gains to big leaps.
Keep in mind that, even if you’re regularly contributing only a small amount every pay cycle, this can still help to compound the growth. For this reason, it’s important to make sure you’re budgeting properly.
Where can I invest $500?
When looking to invest, be sure to choose the right platform for you. Part of this is making sure that there are low or no account fees and making sure that your brokerage fees aren’t too bad. Some platforms even allow for no brokerage fees on certain markets like US shares.
Keep these factors in mind when looking for a brokerage platform, as comparison can help you to find the account that works for you. At Mozo, we have dozens of share trading platforms you can compare so that you get the share trading platform that works best for you.
Share account comparisons on Mozo - rates updated daily
Share Trading
Small trade brokerage
Monthly fee
$3.00$0.00Invest in AU stocks, US stocks, HK stocks and ETFs on moomoo trading platform. US trades from $0.99 USD, other fees apply. Backed by a Nasdaq-listed fintech. (T&Cs apply).
Share Trading
Invest in AU stocks, US stocks, HK stocks and ETFs on moomoo trading platform. US trades from $0.99 USD, other fees apply. Backed by a Nasdaq-listed fintech. (T&Cs apply).
- Monthly fee
- $0.00
- Monthly fee waiver
- -
- Special offers
- Ongoing free access to real-time US market data.
- Brokerage details
- ASX trades are 0.03% the transaction amount, minimum $3.00 per order. US trades from $0.99 USD, other fees apply.
- Settle from any bank account
- Settlement account offered
- -
- CHESS ownership available
- Share pack
- Independent broker reports
- International markets
- Options
- Warrants
- IPOs
- Live data
- Market depth data
- Real time charting
- Other restrictions
- Additional fees apply for US trades.
Read our Mozo Review to learn more about the Share Trading
Share Investing
Standard
Small trade brokerage
Monthly fee
$0.00$0.00CMC Markets Invest makes it easy to trade with a handy web and mobile platform, competitive pricing and thousands of securities. Buy Australian and US shares from $0 brokerage (T&Cs apply - see website for full details).
Share Investing
CMC Markets Invest makes it easy to trade with a handy web and mobile platform, competitive pricing and thousands of securities. Buy Australian and US shares from $0 brokerage (T&Cs apply - see website for full details).
- Monthly fee
- $0.00
- Monthly fee waiver
- -
- Special offers
- -
- Brokerage details
- $0 for trades up to $1,000. Greater of $11 and 0.1% for trades over $1,000.
- Settle from any bank account
- Settlement account offered
- ANZ Cash Account
- CHESS ownership available
- Share pack
- Independent broker reports
- International markets
- Options
- Warrants
- IPOs
- Live data
- Market depth data
- Real time charting
- Other restrictions
- -
Read our Mozo Review to learn more about the Share Investing
Tiger Account
Small trade brokerage
Monthly fee
$5.50$0.00Tiger Brokers is an online broker listed on NASDAQ. It offers access to US, ASX & HK stocks, ETFs and US options trading. Mozo special offer for new users only: Earn 7% p.a. on uninvested cash balance up to AUD 100,000 for the first 150 days, with a value up to AUD 2,877. Plus get US$30 Tesla (TSLA) and US$30 NVIDIA (NVDA) shares with an accumulated deposit greater than AUD 2000. T&Cs apply – for full details, go to the Tiger Brokers website.
Tiger Account
Tiger Brokers is an online broker listed on NASDAQ. It offers access to US, ASX & HK stocks, ETFs and US options trading. Mozo special offer for new users only: Earn 7% p.a. on uninvested cash balance up to AUD 100,000 for the first 150 days, with a value up to AUD 2,877. Plus get US$30 Tesla (TSLA) and US$30 NVIDIA (NVDA) shares with an accumulated deposit greater than AUD 2000. T&Cs apply – for full details, go to the Tiger Brokers website.
- Monthly fee
- $0.00
- Monthly fee waiver
- -
- Special offers
- Mozo special offer for new users only: 7% p.a. on uninvested cash balance for 150 days valued up to AUD2,877. Plus get US$30 TSLA and US$30 NVDA shares with accumulated deposit more than A$2000. T&Cs apply.
- Brokerage details
- 0.055% of trade value, $5.50 minimum brokerage.
- Settle from any bank account
- Settlement account offered
- no
- CHESS ownership available
- Share pack
- Independent broker reports
- International markets
- Options
- Warrants
- IPOs
- Live data
- Market depth data
- Real time charting
- Other restrictions
- -
Read our Mozo Review to learn more about the Tiger Account
Share Trading
Small trade brokerage
Monthly fee
$7.70$0.00Buy and sell with a low $7.70 flat fee per trade and access to all ASX Shares and ETFs to invest in with GO Markets. Enjoy dedicated local customer support, a regulated Australian company for trading ASX Shares and ETFs. Plus, enjoy $0 Brokerage on your next 15 trades! (T&Cs apply).
Share Trading
Buy and sell with a low $7.70 flat fee per trade and access to all ASX Shares and ETFs to invest in with GO Markets. Enjoy dedicated local customer support, a regulated Australian company for trading ASX Shares and ETFs. Plus, enjoy $0 Brokerage on your next 15 trades! (T&Cs apply).
- Monthly fee
- $0.00
- Monthly fee waiver
- -
- Special offers
- -
- Brokerage details
- $7.70 brokerage for trades under $100,000, then 0.05%.
- Settle from any bank account
- Settlement account offered
- Macquarie Cash Management Account
- CHESS ownership available
- Share pack
- Independent broker reports
- International markets
- Options
- Warrants
- IPOs
- Live data
- Market depth data
- Real time charting
- Other restrictions
- -
Read our Mozo Review to learn more about the Share Trading
ASX Shares
Small trade brokerage
Monthly fee
$0.00$0.00Join the world’s leading social trading platform, trusted by 30 million users worldwide. Invest in stocks, crypto, ETFs and more - all in one place. Hone your financial skills with a $100K virtual demo account.
ASX Shares
Join the world’s leading social trading platform, trusted by 30 million users worldwide. Invest in stocks, crypto, ETFs and more - all in one place. Hone your financial skills with a $100K virtual demo account.
- Monthly fee
- $0.00
- Monthly fee waiver
- n/a
- Special offers
- -
- Brokerage details
- There are no brokerage charges but a 0.50% fee is applied to all funds paid into or taken out of the USD settlement account
- Settle from any bank account
- Settlement account offered
- Customer funds are held in a Trust Account managed by JP Morgan Chase and Co
- CHESS ownership available
- Share pack
- Independent broker reports
- International markets
- Options
- Warrants
- IPOs
- Live data
- Market depth data
- Real time charting
- Other restrictions
- $5 USD withdrawal fee applies and a $10 monthly inactivity fee is charged after 12 months with no login activity.
Read our Mozo Review to learn more about the ASX Shares
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