100 pounds is a very nice amount to start your trading adventure with. You can decide what you are going to trade. For example, you could trade your 100 pounds in one go or you could trade different stocks to diversify and spread your risk. If you don’t have any experience yet, you can start by practicing online and then start trading for real with 100 pounds.
Why trade with 100 pounds?
There are several reasons why you should trade with 100 pounds. Although, you could put your money in a savings account, how much interest would you get nowadays? The interest rate you get from your bank is very low, so you might as well start trading. Trading offers you a better chance of making a profit. When you simply save your money, it becomes less valuable over time and this is probably not your goal for investing your money.
By choosing to start trading, you can get a much higher return and, if everything goes well, you can make a lot of money. It is even possible to make a living as a day trader. Day in, day out. There are plenty of people who have quit their day jobs to become day traders, and they earn a solid income simply by trading.
Getting a nice return on your investment of 100 pounds is possible. At a modern online CFD broker, you can use a leverage up to 20:1. With a leverage you can open positions with a larger value than the amount that is on your account. This new, innovative way of trading has a lot of advantages.
Success with 100 pounds?
Leveraging makes it very interesting to start investing with 100 pounds at a CFD broker like Plus500 or Markets.com. With 100 pounds you can open positions of a total value of 2000 pounds or more. With these brokers, the profit is determined based on the difference between the price at the moment you open a position and the price at the moment you close a position.
For example, if you buy ten Apple stocks for a price of 600 pounds and the stock goes up within three days to 630 pounds, then the difference between the opening and the closing price is your profit. This goes both ways though; this profit can turn into a loss if you make the wrong estimation. By using a stop loss, however, you can make sure you only lose a certain amount of money.
Trading in CFDs
We’re talking about trading CFDs (Contract for Difference). You close a contract automatically and profit from the price differences. This means that you can make money when prices go up, but also when prices go down.
You can easily test the possibilities of investing in CFDs with a demo. Depositing money will not be necessary! When you are ready, you can immediately deposit 100 euros in your account to invest in your favorite shares. The higher the amount you deposit, the higher the potential result you can reach. The first deposit is your most important one! If you deposit 100 pounds, for example, you can immediately start discovering the possibilities of trading.
Invest with 100 pounds
Some people prefer to invest their 100 pounds. The difference with investing is that investing is long-term. For example, you buy a share to resell it a few years later. When you can miss a fixed amount of 100 pounds every month, investing in this way can be very interesting.
If you want to invest a small amount of 100 pounds, it is wise to do this in an index fund. An index fund is a fund that follows a basket of shares. The advantage of an index fund is that you can already apply diversification, even with a small amount of money. You buy a participation in the fund and you become co-owner of a selection of different shares. The diversification lowers the risk of your investment and makes it less likely that you lose a big part of your investment.
When you are going to invest 100 pounds periodically, it is wise to deposit this amount every month into your fund. By doing this, you make sure you spread your investments out over time. After all, you do not want to lose money because you invested all your money just before the markets are about to crash.
Do you want to know where you can buy participations in an index funds? Buying participations in an index fund is possible with an online broker. We have listed the best brokers for you:
The possibilities of trading are tremendous; you can trade in stocks, Forex, commodities and Index Funds. And all of that can be done from one account. Another advantage of CFDs is that you pay lower transactions fees than the ones you pay with traditional trading.