Tags: ways | buy | cheap | stocks

6 Ways to Build Strong Investment Portfolio by Buying Cheap Stocks

6 Ways to Build Strong Investment Portfolio by Buying Cheap Stocks
(Dollar Photo Club)

By    |   Thursday, 07 September 2017 12:27 PM

Beginners might believe they don’t have enough money to start investing.

Other investors are just looking for ways to buy cheap stocks.

There are plenty of opportunities for everyone to spend less with the chance of earning more.

Investors can find cheap stocks and also find quality investments without the high management and expense fees of trading firms. Investments may include spending less for less-established company stocks or owning a few shares of respected companies.

Try your hand at these six ways to buy cheap stocks and you could be on your way to a strong financial portfolio:

  • Stash — You can buy Exchange-traded funds (ETFs) from this online investing company for as little as $5 for fractional shares, a far lower minimum investment than most ETFs, according to Clark.com, the website of financial advisor Clark Howard. ETFs include stocks, bonds, commodities, and other assets, trading during the day close to the net asset value.
  • Acorns — The micro investing method allows people to automatically invest with extra change. You can set up recurring investments with small amounts. If you buy something for under $4, Acorns rounds it out to $4 and puts the extra amount in savings, using it to invest when the account reaches $5.
  • Buy direct Direct Stock Purchase Plans (DSPPs) are offered by many companies that allow small investors to buy their stock with low minimums, $50 or less. They usually require low automatic withdrawals each month from an investor’s banking or savings account. Online sites, such as Computershare, offer DSPPs from many companies.
  • Discount brokers — They offer significantly reduced commissions on trades without the full-service approaches, such as investment advice, from other brokers. Online discount brokers, such as Interactive Brokers, spend more of the commission fees on trade execution rather than operational costs of larger brokerages, according to U.S. News. Scottrade offers research analysis and software at cheaper rates than brand brokerages.
  • Free trading — Some trading sites offer buying and selling with no commissions or fees. There are no commissions for trading with Robin Hood through your smartphones. Loyal3 charges no fees for buying or selling stocks. It’s free to open an account and buy fractional shares for only $10.
  • Penny stocks — These stocks cost under $5 a share or $3 and lower. They are not traded on the major stock exchanges but listed on over-the-counter, or OTC, bulletin boards and the OTC Markets Group, NerdWallet explains. The stocks are from up-and-coming companies, so they can be risky and may be for more experienced investors. Penny stocks can be found through online brokers.

© 2020 Newsmax Finance. All rights reserved.

1Like our page
Beginners might believe they don't have enough money to start investing. Other investors are just looking for ways to buy cheap stocks.
ways, buy, cheap, stocks
Thursday, 07 September 2017 12:27 PM
Newsmax Media, Inc.
Newsmax TV Live

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

© Newsmax Media, Inc.
All Rights Reserved