Invest with 1000 pounds: these are the best options!
Would you like to invest with 1000 pounds? Even with an amount of 1000, you can achieve good results! In this article, we will look at how you can achieve a good return on the stock market with 1000 pounds.
What can you invest in with 1000 pounds?
With 1000 pounds, you have various investment opportunities! With these tips, you can ensure that you achieve the best results with your investments!
You can choose to buy a selection of shares with 1000 pounds. In the past, this was often not attractive due to the high transaction fees. Nowadays, however, much more is possible: brokers have greatly reduced their transaction costs. This means that you can even invest in a nice selection of shares with a small amount like 1000 pounds.
Are you curious which brokers you can turn to with an amount of 1000 pounds? In the table below, you can see which providers allow you to invest with an amount of 1000 pounds (sometimes even without transaction costs):
| Brokers | Benefits | Register |
|---|---|---|
 | Buy without commissions. Your capital is at risk. Other fees may apply. | |
 | Speculate with CFD's on increasing & decreasing prices of ! 82% of retail CFD accounts lose money. | |
 | Benefit from low fees, an innovative platform & high security! | |
 | Speculate on price increases and decreases of with a free demo! |
Option 2: invest 1000 pounds in crypto
Cryptocurrencies can be very interesting for the speculator who doesn’t mind putting (part of) the 1000 pounds into a very risky but potentially profitable asset. Cryptos regularly rise and fall by tens of percentages in value. If you buy the right crypto at the right time, you can achieve a significant return.
Would you like to know more about investing in cryptocurrencies? Then read our article on the subject. You can invst in crypto with one of these popular crypto exchanges:
Option 3: invest in an index fund
Another attractive option when you have 1000 pounds, is to invest in an index fund or ETF. With an index fund, you invest once or periodically in a wide selection of shares. This allows you to apply a solid level of risk diversification directly, which is ideal for the average investor. In addition, costs are low when investing in index funds, which is of course ideal when investing with only 1000 pounds. In this article, you can read in detail about how investing in ETFs works.
Option 4: day trading with 1000 pounds
Stock market prices constantly fluctuate: you can capitalize on this by actively speculating. It is important to keep a close eye on the latest developments. For example, if negative news comes out about a company’s sales, the chances are high that the share will decrease in value. You can then take a short position to achieve a positive result.
Option 4: Repay debt
Sometimes people are so focused on earning money that they forget about their debts. If you have a debt, you pay monthly interest on it. By paying off the debt, you actually achieve a nice return immediately. Especially if the interest rate on your debt is high, it’s better to pay it off right away. With an interest rate of 5%, you already save £50 annually if you use £1,000 for repayment.
Option 5: Invest in commodities
It can also be smart to invest part of the £1,000 in commodities. Precious metals such as gold and silver are relatively stable in value and often perform well during an economic crisis. With some brokers, it’s even possible to actively trade in the price fluctuations of commodities. If you want to learn more about investing in commodities, you can read our article on the subject:
Option 7: Lend £1,000
You can also choose to lend your money. For example, you can lend £1,000 to a friend at a low interest rate. Another option is to buy a bond: with a bond, you lend money to a company or government.
There are also special online platforms where you can lend money to new businesses: this form of investing is also called crowdfunding. First, research the creditworthiness of the party to whom you lend your money.
Option 8: Invest in your pension
Research shows that many people forget to accumulate wealth for their pension. That’s a shame! Starting young with building your pension means you’ll end up with a large sum later on. Moreover, you often receive interesting tax benefits when you set aside money for your pension.
Option 9: Invest £1,000 in a business
Another good option is to invest £1,000 in your own business. In practice, the return on investment in your own business is unlimited. Of course, you need a good idea for this: spending £1,000 on a random idea won’t make you rich. Moreover, it’s important to remember that entrepreneurship often costs a lot of blood, sweat, and tears. This option is therefore not suitable for the investor with a limited amount of time.
Option 10: Invest in education
Sometimes investing in yourself is the best choice. For example, you can buy some good books about managing your finances. You can also develop a new skill that may enable you to earn more money in the future. Investing in yourself always pays off well. Even if you lose money, at least you’ve grown as a person!
Why is investing £1,000 a smart move?
Saving no longer yields anything; worse yet, it now costs you money. The savings interest rate no longer outweighs inflation, which means that your money becomes less valuable over the long term! By investing, you can achieve a higher return.
For example, you can deposit a monthly amount into a reliable ETF. ETFs track a certain index, allowing you to benefit from the average return on the stock market. If you achieve an average annual return of 8%, you would achieve the following return with a monthly deposit of £1000:
| Year | Capital |
|---|---|
| 5 | £70.399 |
| 10 | £173.838 |
| 20 | £549.143 |
| 30 | £1.359.398 |
| 40 | £3.108.678 |
| 50 | £6.885.241 |
However, it is important to remember that return is a reward for risks. When you aim for a high return, you also face higher risks. With some investments, you can even lose your entire investment!
Setting up your own plan: investing £1000 per month
If you have sufficient income, it may be wise to invest £1000 per month. If you have enough time, you can do your own research and select strong stocks. If you have little financial interest, you can choose to periodically deposit a fixed amount into an ETF. In the latter case, you still benefit from market developments without having to put in much effort.
Personally, I choose to deposit £1000 into an index fund every month and not think about it further. This way, I build up a nice fortune in the long term. Investing a fixed amount monthly is also known as dollar cost averaging: it allows you to benefit from the average return on the stock market with minimal effort, resulting in maximum results!
It is important to always develop your own investment plan. What works for you may not work for me. I have developed a handy tool that allows you to test how much wealth you can accumulate when investing £1000 per month:
Only invest money that you can afford to lose; past results do not guarantee future performance!
How to achieve a high return with £1000?
If you want to achieve a high return with a small amount of £1000, you can use derivatives. With derivatives, you can actively trade in, for example, stocks and commodities. But how do you achieve a higher return by using them?
If you want to achieve great results with investing and invest £1000, you can use a leverage. With modern CFD brokers, you can use a leverage of up to 1:30, but what does this actually mean?
With a leverage, you can take positions with a larger value than the amount you have on your account. With £1000, you can trade up to £30,000. This greatly increases your profits and losses in proportion to your deposit of €1000!
If you don’t mind taking big risks, you can also invest in cryptocurrencies. Some cryptocurrencies multiply in value, while others turn out to be worthless in the end.
Get started with investing on your own
When you are interested in investing, it is wise to start by opening a free demo account. You can easily open a demo account with various brokers. By practicing, you learn to recognize patterns and know what to look out for in order to become successful.
Once you know enough about investing and know what to do, you can deposit the thousand pounds into your account.
Frequently Asked Questions about Investing 1000 pounds
The only practical way to invest 1000 pounds ‘without risk’ is to put it in a savings account. You won’t lose any money in absolute terms on your savings account. However, due to inflation, your money will become less valuable in practice: product prices increase every year while the amount in your savings account remains the same.
It is certainly advisable to keep a certain amount of money in your account for difficult times. However, not investing anything is a waste: this way, you actually know for sure that your wealth will become less valuable in the long term.
It can definitely be wise to invest 1000 pounds. By starting with smaller amounts, you increase the chance of building a large fortune in the long term. You also receive a return on your return, which means that the amount you build up grows exponentially.
You won’t notice this in the beginning, but your wealth will actually grow faster in the long run. This means you can never start early enough.
What you should do with 1000 poundsdepends on your personal situation. If you want to achieve a high return and don’t mind taking big risks, you can invest in, for example, crypto or derivatives.
Do you want to slowly but steadily build a large fortune? Then investing in an ETF may be the solution.
1000 pounds is already a decent amount to start with. You can go to almost all brokers with an amount of 100 pounds or more. With 1000 pounds, you can, for example, buy multiple stocks or invest in an ETF and thus follow an entire index at once. In this article, you can read in detail about the possibilities.
When you invest £1000 and take the time to make it profitable, you can achieve a high return. With an average stock market return of 8%, you would have £2,158 after 10 years, £6,848 after 25 years, and even £46,901 after 50 years. However, please note that past performance is no guarantee of future results!
Auteur
Over Alex Mostert
When I was 16, I secretly bought my first stock. Since that ‘proud moment’ I have been managing trading.info for over 10 years. It is my goal to educate people about financial freedom. After my studies business administration and psychology, I decided to put all my time in developing this website. Since I love to travel, I work from all over the world. Click here to read more about trading.info! Don’t hesitate to leave a comment under this article.
