Investing with 100 pounds is possible! When you start investing with 100 pounds, that is a nice starting amount. But before you start, it is important to decide where you are going to invest. You can invest the 100 pounds in one go, but you can also invest in different shares to spread your chances. If you do not have any experience, you can first practice on the internet and then invest 100 pounds for real to try your luck.
What is the best way to invest 100 pounds?
With 100 pounds you can achieve good results! It is important to select a smart investment method. Below we discuss the different ways you can invest 100 pounds.
Active investing with 100 pounds
You can choose to trade in the price development of a stock. You can then speculate on both price rises and price falls. In addition, you can take a larger position by using leverage with the 100-pound amount: You can then trade 500 pounds worth of shares.
Did you know that you can try out the active trading of shares completely free & without risk? At Plus500, you can test trading of CFD shares with a demo. When you are ready, you can deposit 100 pounds and get started immediately. Use the button below to open an account directly with Plus500:
Invest 100 pounds in shares
It is also possible to invest in shares with 100 pounds. It is important to choose a broker where you pay low transaction costs. At many banks and brokers, you pay fixed transaction fees. For example, if you pay a 2 pound per order minimum, your costs quickly add up to 2%! That way it is exceedingly difficult to achieve a good return on your investment.
For that reason, it is smart to invest with a broker without fixed commissions. At eToro you do not pay commissions on any shares. This allows you to buy several shares, even with 100 pounds. Use the button below to open a free account with eToro:
Invest 100 pounds a month
Some investors want to invest a monthly amount of 100 pounds. This is smart: The power of compounding allows you to quickly build up a decent amount of capital. Moreover, with 100 pounds you can spread your risks: you buy in both economically positive and negative times so that you never lose all your money at once.
If you want to invest a fixed amount monthly, you can do this by investing in an investment fund or ETF. This fund invests your 100 pounds in a selection of shares. At the broker DEGIRO you can make an investment in many core funds for free. Use the button below to open an account with DEGIRO:
Why invest with 100 pounds?
There are several reasons why you would want to invest with 100 pounds. You can start saving money now, but how high are interest rates these days? The interest you receive from the banks is exceptionally low, which makes it more attractive to invest. Your money becomes less valuable long term which is of course not your goal.
You can achieve a higher percentage by choosing to invest and if it works out well, you can get a good return on it. It is even possible to earn a living as a daytrader, every day. There are people who have stopped working and are only active as a day trader. However, it is important to remember that investing is a risky activity: There are certainly no guarantees!
Achieving a return with 100 pounds is possible. You can use a lever with a modern CFD broker that can run up to 1:30. You can use leverage to take positions with a higher value than the amount you put into your account. This new way of trading has many advantages.
Successful with 100 pounds?
It is precisely this leverage that makes it so attractive to invest 100 pounds with a CFD broker like Plus500 or eToro. With 100 pounds, you can open positions with a total value of 3000 pounds or more, thanks to the leverage. With these brokers, the profit is determined by the price difference between the moment you open the position and the moment you close the position.
If you buy 10 CFD Apple shares at a price of 600 pounds, and they rise to 630 pounds within 3 days, this difference will be your profit. However, please note that this works both directions: this profit can turn into a loss if you have made a wrong estimate. However, by using a stop loss you can ensure that your losses are limited as much as possible.
Investing in CFDs
When you only have 100 pounds you can choose investing in CFDs(Contract for Difference). With CFD trading, you buy a contract on the price differences of the share. This means that you can obtain a positive result when the prices move. Since you can open a trading position on both increasing and decreasing stock prices, you can be active under different types of market conditions.
You can easily try out the possibilities of investing in CFDs with a demo; that way, you do not even have to deposit money. When you are ready, you can immediately deposit 100 pounds into your account to invest in your favourite shares.
The possibilities of investing are manifold: you can invest in stocks, but also the Forex, commodities, and index funds, and all this can be done within a single account.
Invest with 100 pounds?
Some people prefer to invest their 100 pounds. The difference with speculating is that investing is long-term. For example, you buy a share to sell it back a few years later. When you can invest a fixed amount of 100 pounds every month, investing can be very interesting.
For example, if you want to invest a small amount of 100 pounds, it is wise to do so in an index fund. An index fund is a fund that tracks a bundle of stocks. The advantage of an index fund is that you can already apply a solid level of risk diversification, even with a small amount of money. You buy a stake in the fund and you become co-owner of, for example, 100 different shares. As a result, you are far less likely to lose a large amount of money with your investment.
When you start investing 100 pounds, it is wise to deposit this amount with the fund in fixed intervals. By doing this, you make sure you also spread your risk over time. It is a shame to step in only when the markets have reached a new peak.
Do you want to know where to buy shares in index funds? This can be done with an online broker. We have listed the best parties for you: