Finding quality, cheap stocks is a lot like bargain hunting – the pay off can be huge, but you’re also dealing with more risk and volatility. Still, time and time again investors are attracted to stocks under $5 because of the opportunity they offer. These stocks allow you to start investing with a small amount of up-front capital.
Are you looking to get in on some of the best stocks under $5? We’ll go over everything you need to know about these securities and how you can start investing for $5 or less.
How To Find Stocks Under $5
There are two main ways you can get started investing in stocks under $5. You can either do the research yourself or opt for a fully managed investment account. These two approaches are very different and there are various pros and cons to each. The good news is, we’ll go over each method so you can choose what works for your wallet and skill level!
Get a Fully Managed Investment Account
This is a type of investment account that is managed by a professional portfolio advisor or financial institution. This means a professional financial advisor or investment expert makes decisions about the account. They may decide what types of securities will be in the account – the kind of stocks, bonds, ETFs, etc, it will feature. They may also make decisions about when to buy and sell different securities depending on market fluctuations.
Opting for a fully managed investment account is like taking a hands-off approach to investing. Many people prefer to go this route because they’d rather leave their money to the professionals. Although there’s no guarantee, fully managed portfolios can sometimes be better diversified and better able to manage risk than individually picked stocks.
Some fully managed portfolios charge fees or require higher minimum investment amounts. If you’re looking to get started for $5 or less, MoneyLion is a great option.
MoneyLion’s fully managed investment accounts makes it easy for you to start investing by doing all the work for you and charges only $1 a month administrative fee. These portfolios consist of stocks, ETFs, and bonds. Plus your portfolio will be always customized according to your financial situation and personal preferences.
Look at Pink Sheet Stocks
Another way to find the best stocks under $5 is to research stocks on your own. You can use sites like Yahoo! Finance or Nasdaq to view financial news and data about stocks. You should use information about P/E ratios, dividends, average trading volume, and more to compare different equities and make your decision.
Once you’ve selected your stocks, you will need to open a brokerage account that allows you to purchase single stocks. Some of these accounts may charge you based on each trade or require high minimums. It’s a good idea to research different brokerage accounts before you make a selection.
This method may sound time-consuming – and that’s because it is. It can take hours and hours of research to find the right stocks. Once you’ve selected your best stocks under $5, you’ll constantly need to stay updated on news and relevant financial information that could affect the price of your portfolio.
All in all, it’s a lot of work. Which is why most people who don’t have the time or a financial degree opt for a professionally managed portfolio instead.
Can I Invest $5 Today?
Yes! If you’re looking to invest $5 today, we think that fastest and most cost-effective way to get started is with a MoneyLion investment account.
All you need to do is download the MoneyLion app and you’ll have a suite of financial products at your fingertips the very same day. Here’s how you can get started.
- Download the MoneyLion App
- Choose your investment strategy – MoneyLion will walk you through this process with a few questions about your income and risk tolerance.
- Add funds from a linked checking account – for example, your RoarMoney account.
- Turn on Auto Invest – This feature helps you make consistent deposits towards your portfolio by automatically transferring an adjustable amount of money from your bank account regularly. It’s a great strategy for growing your money faster!
- Monitor your money – check your MoneyLion account daily to stay on top of your finances. You also want to keep an eye on your checking account, other accounts, spending habits, credit score, and more. Check out our financial tools to help you monitor your finances here.
Start investing with $5
Times have changed. Investing doesn’t need to be complicated or only for the wealthy anymore. In fact, 90% of MoneyLion customers are first-time investors. Why? Because people value MoneyLion’s commitment to affordable, quality investment portfolios available to everyone.
MoneyLion’s portfolios consist of top-grade, well-diversified, and low-cost exchange-traded funds (ETFs), stocks, and fixed-income (bond) ETFs. There are no minimums and you’ll never have to pay for asset-based management fees when you invest with MoneyLion.
Best part? You can get started in minutes!
Learn more about how investing with MoneyLion works here.