How to invest 50 pounds (2024)?
Recently, we have received many questions from people asking if it is possible to invest with 50 pounds. The answer is yes, it is definitely possible! In this article, we discuss the best options for investing £50 per month.
Why is it interesting to invest 50 pounds monthly?
Many people incorrectly think that investing is only possible for the wealthy. This is unfortunate because starting early with a monthly investment of £50 can lead to a nice fortune. If you invest £50 per month at an average annual return of 8%, then you will achieve the following results:
- After 10 years, you would have £17,383
- After 25 years, you would have £87,727
- After 50 years, you would have £688,524
Starting early with a small amount increases the chance of ending up with a large amount because you receive a return on your return. However, do not forget that investing can also result in losses. But what are the options for investing 50 pounds?
What can you invest 50 pounds in?
Buy stocks with £50
Nowadays, there are various brokers where you can start investing with £50. In the past, this was unattractive because you often had to pay high minimum fees, which made it impossible to achieve positive returns.
Fortunately, there are now several brokers where you can buy shares without fixed commissions. Moreover, you can invest in fractional shares: you then buy a small part of a stock.
Are you curious about which brokers also allow you to buy shares with £50? In the table below, you can see which broker allows you to buy shares with 50 pounds:
| Brokers | Benefits | Register |
|---|---|---|
 | Buy without commissions. Your capital is at risk. Other fees may apply. | |
 | Speculate with CFD's on increasing & decreasing prices of ! 80% 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! |
Invest £50 in Bitcoins
If you are not afraid to take a little more risk, you can also invest 50 pounds in cryptocurrency. Many young investors find crypto an interesting option. The price of Bitcoin can easily rise or fall ten percent in a day, so even with a small amount, you can quickly see results.
You can invest in crypto with one of these reliable crypto exchanges:
| Brokers | Information | Register |
|---|---|---|
 | Speculate in popular crypto products with eToro! Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more | |
 | Speculate on increasing & decreasing crypto prices with the CFD provider Plus500 using a demo account. 80% of retail CFD accounts lose money. |
Invest 50 pounds in an ETF
You can also choose to invest 50 pounds monthly in an ETF. This allows you to build up capital over time. It is then advisable to hold the funds for a longer period.
Would you like to read in more detail how you can invest in ETFs with £50? Then read our extensive special on ETFs:
Daytrading with £50
You can also decide to actively speculate with an amount of £50. With active speculation you can use leverage: this allows you to invest a large amount with a small amount. It is also possible to take short positions, which also allows you to speculate on a falling price.
In this article, we describe in detail how day trading works. Day trading is generally very risky and when you start with a smaller amount, your risks are even higher. It is therefore advisable to practice with a demo first.
Pay off debts with 50 pounds
If you have interest-bearing debts (such as a mortgage), you can make monthly repayments on them. By paying off your debts, you are actually achieving a “guaranteed return.” You pay less interest each month and spend less on repayments.
More investment options with 50 pounds
- You can invest in commodities with 50 pounds
- You can trade CFDs with 50 pounds
- You can speculate in options with 50 pounds
Strategy for investing with 50 pounds
Dollar-cost averaging is a common strategy for people investing with 50 pounds. You invest a fixed amount each month, which averages your returns on your investments.
When you invest all at once, you never know if you are buying at a high or a low price. By investing a fixed amount each month, you take emotions out of your decision-making and can actually invest on “autopilot.” ETFs are well-suited for applying dollar-cost averaging, but you can also use this strategy to buy other investments.
Smart to start early
It is advisable to start investing early, even with small amounts. For example, you can start putting 10, 50, or 100 pounds a month into an index fund at a young age. Time is then your best friend: over a period of decades, you can build up a substantial amount through compound returns.
This is because you also receive returns on your returns. In the long run, this adds up, which means your wealth grows exponentially. When you start investing early, you need a much lower monthly amount to achieve the same goal.
Are you curious about how much return you can earn with a monthly investment of 50 ppounds? The table below shows how your returns grow when you achieve an average annual return of 8%.
| Year | Capital |
|---|---|
| 5 | £3.519 |
| 10 | £8.691 |
| 20 | £27.457 |
| 30 | £67.969 |
| 40 | £155.433 |
| 50 | £344.262 |
Is it possible to invest with 50 pounds?
Ten years ago, it was impossible to invest with 50 pounds. It is impressive that it is now possible to invest with 50 pounds. However, it is important to be extra careful about transaction costs when investing with 50 pounds: with more expensive brokers, the costs are too high to achieve a good return with 50 pounds.
Therefore, select a broker where you do not pay fixed commissions. Click here to compare the best brokers.
Can you spare 50 pounds?
Be mindful of the risks! Investing 50 pounds can be a good idea if you enjoy it or want to start exploring the stock market slowly. However, it is important to only invest money that you can absolutely spare. Do not invest money that you will need soon: investing is a risky activity that can cause you to lose money.
Investing is usually worthwhile if you can afford it. With enough time, even small monthly investments of £50 can yield a good return, as your return earns a return. Always consider whether you can afford to invest the money for an extended period of time.
Surprisingly, it is possible to invest in real estate starting from £50. While you cannot purchase a house with this amount, you can invest your money in a real estate fund. The fund invests on behalf of you and many other investors, for example in apartments, from which you receive a portion of the rental income. Always research the exact investments of the real estate fund, as there are also many fraudulent funds that are not supervised by a regulator.
Most investors will not earn a lot in the short term with a £50 investment. The average annual return on the stock market is around 8%, and there are also years in which you may incur losses. If you manage to achieve a 10% return, you will receive £5. However, monthly investments of £100 can be interesting, as your returns will also earn returns, leading to exponential growth in your investments.
It is impossible to predict with certainty how much a £50 investment will yield. With some high-risk options such as cryptocurrencies and stocks, you can achieve returns of tens of percent. However, the risk of significant losses is also greater with these investment options. Therefore, thoroughly research the risks and opportunities and choose an investment that suits you well.
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.
