Investing
Getting started with investing, from choosing an account and low-cost index funds to stocks, bonds and how much risk to take.
Getting started
How to Start Investing: A Beginner's Guide
You don't need a lot of money or expert knowledge to start investing. Here's what to do first, which accounts to use, simple low-cost ways to invest, how much risk to take, and the common mistakes that cost beginners the most.
| Provider | Fractional shares | Details |
|---|---|---|
| Charles Schwab Brokerage account, opens in a new tab | S&P 500 stocks only | Visit site Charles Schwab Brokerage account, opens in a new tab |
| E*TRADE from Morgan Stanley Brokerage account, opens in a new tab | Most stocks and ETFs, from $5 | Visit site E*TRADE from Morgan Stanley Brokerage account, opens in a new tab |
| Fidelity Brokerage account, opens in a new tab | 7,000+ stocks and ETFs, from $1 | Visit site Fidelity Brokerage account, opens in a new tab |
See all 6 brokers and how we chose them
For information only, not a recommendation. Rates and terms change often and may depend on where you live; check the details with the provider before you apply. Pond.com isn't paid by any provider listed here.
Getting started with investing
Investing helps your money grow faster than savings over the long run, with some ups and downs along the way. You don't need to be an expert, and you don't need a lot of money to start.
How to start investing walks through what to do first, which accounts to use, simple low-cost investments and the mistakes that cost beginners most.
Learn the building blocks in stocks vs bonds and ETFs vs mutual funds, and see why many people use index funds. When you're ready, how to choose a brokerage account explains what to compare.
Most investing starts with retirement accounts. See retirement accounts explained and what is a 401(k) match?.
Investing involves risk, and Pond provides general information, not investment advice.
Common questions
Many brokerages have no minimums and offer fractional shares, so you can start with a few dollars. Get any employer 401(k) match first, then invest small amounts regularly in a low-cost index fund or target-date fund.
Broad, low-cost index funds or a single target-date fund are simple choices that spread your money across many companies. Avoid putting money you can't afford to lose into single stocks or trends.
No one can reliably predict short-term market moves. For long-term goals, investing regularly, whatever the market is doing, has historically worked better than waiting for the right moment.