In this mini-guide on how to invest 10 euros we will explain how to start operating on the financial markets from scratch, with very low capital. Investing in the stock market, in the collective imagination, is an activity that requires enormous economic resources, and until not too long ago it was actually like this, and the few platforms that allowed you to invest little money, aroused many doubts and uncertainties, above all due to the lack of transparency of the platforms themselves.
However, for some years now, the world of investments has been shaken by the ever-increasing diffusion of online investment platforms, certified by bodies such as CySEC, on which it is possible to start investing with small sums. In this guide I want to show you how to start investing with only five euros.
This once science fiction possibility is now a reality thanks to countless platforms such as eToro and XTB. In fact, with the latter there is no limitation in terms of minimum deposit. You can also start with 10 euros. However, we recommend starting to invest with at least 100 euros, in order to guarantee the necessary coverage and diversification for your portfolio.
Click here to open an account with XTB.
💶 Investment: | €10 |
❓ How to invest: | CFD Trading |
📍 Where to invest: | eToro |
🏆 Best Alternatives: | XTB |
- What does it mean to invest in the stock market?
- Is it possible to invest 10 euros?
- Automatic trading
- Invest in CFDs
- What to invest in with 10 euros?
- Conclusions
- FAQ
What does it mean to invest in the stock market?
Let's start by saying that stock market investments are very varied, and the investment possibilities are very wide.
When it comes to investing in the stock market most people immediately think of the stock market, but that is just one of the many financial markets in which it is possible to invest. Investing in the stock market means investing not only in shares of companies, but also in bonds, government bonds, treasury bills, commodities, cryptocurrencies, currencies e differential contractsmore commonly called CFD.
Contracts for differentials are one of the great innovations in the financial sector that numerous online brokers make available to their customers and users of their trading platforms, to make investments in a simple, transparent and secure way. These contacts can have applications in any financial market and are divided into two broad categories, CFD bull contracts and CFD bull contracts.
Upward CFDs are contracts which, very simply, allow you to obtain a positive investment when the securities in which you have invested increase their value, while downward CFDs are contracts which allow you to obtain a result when the securities on which you have invested, see their market value decrease. This is made possible by a mechanism called financial leverage, which gives the possibility of investing not in the entire stock, but only in a fraction of it.
There are countless trading platforms on the net, but only a few of them are authorized to operate in Italy and certified by bodies such as CONSOB, national commission for companies and the stock exchange, which has the task of monitoring the activities that allow financial operations to be carried out to protect investors.
A platform certified by CONSOB is a platform recognized by the Italian state, authorized to operate legally in Italy and whose operations, transactions and deposits are totally transparent, in short, they are safe and reliable platforms that allow you to invest independently and without the risk of being scammed.
Is it possible to invest 10 euros?
Small investments, generally investments of less than €100, are usually called micro investments and if you want to start investing with only €10, all you have to do is choose one of the best online trading platforms, sign up, and start investing. invest. However, you must know that most of the best platforms, such as XTB, require a minimum deposit, consequently, if on the one hand you can invest even just 5 euros, you will necessarily have to make a minimum deposit on your investment account.
In the case of platforms like eToro il minimum deposit is 50 euros (which is very little, considering the functions of the platform), while on XTB il minimum deposit does not exist. However, we recommend an investment of at least 100 euros to ensure correct hedging of positions, diversification and money management.
To invest 10 euros, all you have to do is register on the platform you want, make the initial deposit so as to activate your investment account and choose what to invest in among countless CFD contracts, shares, government bonds, commodities, ordinary bonds treasuries, ETFs, bonds, currencies and cryptocurrencies.
Alternatively, you can choose any other platform and invest 10 euros in any stock traded by the broker, keep in mind that the greater the number of investments you make, the greater the potential positive result.
Imagine investing €10 in the shares of an oil company such as Saudi Aramco, and at the same time invest another €10 in commodities, in particular oil, and finally, invest another €10 with an upward CFD on diesel. These three separate investments are linked together by a very thin red thread, since the price of diesel depends directly on the cost of oil and Saudi Aramco is Saudi Arabia's oil extraction company, which alone controls more than 10% of the world oil extraction.
With these three micro-investments, starting at €10, you will be able to potentially obtain much higher results than you would obtain by investing €30 in just one of the three stocks. This is obviously an example, it could also happen that while the price of fuel and diesel increases, the value of Saudi Aramco shares decreases, or vice versa.
In any case, to answer the initial question, yes, it is absolutely possible to invest only 10 euros in the stock market, and this thanks to some of the best online brokers and the leverage mechanism that allows you to invest in fractions of stocks, shares, currencies etc.
How can I invest 10 euros?
There are many ways you can invest 10 euros, and I can't tell you which is the best or the safest, but I can tell you which tools to use to start investing with 10 euro micro investments.
If you want to start investing with 10 euros, it is very likely that you are not an expert trader, and are unfamiliar with trading platforms, so I want to show you some tools that could help you learn how to trade and invest.
Free trading course
The first resource I want to recommend is a trading course, processed by the XTB platform. It is a completely free trading course in which you will be taught the basics of trading, and you will be shown all the functions available on the XTB platform. This course has been designed to teach inexperienced traders how to trade.
The course is aimed primarily at users of XTB, one of the best trading platforms in the world, completely free and attentive to its users. To follow the course and learn how to trade, all you have to do is click here. Everything you will learn in the XTB trading course you will be able to put into practice, in real time, without any cost or risk, through the demo account made available by XTB.
The demo account is a virtual account, with virtual money, which allows you to operate on the platform, with all functions and titles updated in real time, but without using real money, in this way you will be able to familiarize yourself with the platform and its functions, and put strategies and experiments into practice, until you are ready to try your hand at real investments. At that point, all you have to do is switch from the demo account to the real account, and start investing real money.
Obviously you can invest the amount you want, on each security on the platform, you can then decide to invest even just €10.
Social Trading
Social trading is a very important resource to learn how to trade, this tool is offered by the eToro platform, it is a totally revolutionary and innovative feature that allows traders to observe other traders on the platform and learn to trade by imitating their investments.
One of the most powerful features of social trading is the copy trading. This is a particular function that allows users to literally copy all the operations performed by other traders, in a completely automatic way. While social trading can be an unparalleled educational tool, copy trading is more simply a tool to get results without too much effort. By choosing to copy the best traders, a user can obtain important results, without any effort and without any difficulty, but above all, without any cost.
Copy trading is in fact an automatic trading tool, completely free and the only difference between the copied user and the copying user is the invested amount, which will be proportionate to the copying user's deposit. In fact, you can decide to copy other traders by investing only $200 on a single trader. The minimum amount for a copied position is $1;
Automatic trading
Automatic and semi-automatic trading is one of the best tools for small investments, and consists in using some functions offered by the different trading platforms that allow you to perform some actions automatically.
Among the most efficient and performing automatic systems, complete and above all free, the automatic functions of eToro e XTB, these automatic systems allow users to define a purchase and sale price of the shares or securities in which they have invested or in which they intend to invest, in this way it is possible to maximize the return on their investments, and at the same time contain losses .
One of the most widespread uses of automatic functions is linked to the target price, a price defined by the market which, according to analysts, will be reached by shares, stocks or other financial resources. Let's take the price of gold for example.
The average value of which fluctuates around 40 euros per gram. A user could use the automated features of the trading platforms for buy gold o Gold ETFs, when the price of the resource is below average, thus, for example when the price of gold and consequently also of gold ETFs drop to 33 euros, the platform will automatically buy gold, and when the price of the resource will rise above the average value reaching a target price of 50 euros, the platform will sell automatically, allowing the user to profit from the difference. In the same way, however, a user could decide to use the automatic functions to build an anchor of security around his investments.
For example, let's assume that a user has invested in BPER shares when their price was €2,3 per share, and which points to a target price of €4.
If unfortunately something were to happen for which the share price should start to decrease, the loss of value of the shares would result in a loss for the user, but thanks to the automatic functions, the user can set a stop loss at €2, just below the average fluctuations, in this way, if the shares were to lose too much value, the system would automatically sell them, in order to contain the losses.
Invest in CFDs
One of the best ways to invest small amounts of money, easily and safely, and profit from market fluctuations, so as to invest both when the value of stocks, securities and assets increases, and when their value decreases, is through the CFD tool. Contracts for difference offer the possibility of investing small amounts of money on the performance of the shares, both up and down.
This very powerful tool is offered by the major online brokers, and allows you to obtain important earnings with extremely small investments. The CFD financial instrument was invented in England in the XNUMXs, but only in the early XNUMXs, thanks to the diffusion of the first online brokers, did it begin to spread rapidly.
This instrument is highly appreciated due to its main features, such as the possibility of investing both upwards and downwards on all global financial markets, the absence of commissions, and the possibility of operating in real time. It means that if the shares of a given company or a new IPO are rapidly increasing or declining in value, a user can buy a CFD contract on the upside or downside, depending on the performance of the shares, and invest immediately. Furthermore, the user can close the trade at any time, and this is because the user does not have to have a hedge, and the only risk capital is that actually invested in a given CFD.
What to invest in with 10 euros?
Trading platforms such as eToro, XTB allow you to make micro investments on any security they trade, so it's up to the user to choose what to invest in.
However, according to many analysts, the best companies in which to invest small sums, such as 10 euros, are the tech startups and new IPOs.
This is because the price of their shares, when launched on the financial markets, is generally very low, but tends to increase quite rapidly, especially on the secondary market, consequently it is possible to invest a few euros to buy many shares of a startup or a new IPO and after a few days, resell those same shares at a higher price, which, in the case of tech startups recently listed, it is often several times higher than at launch.
To give some examples, at the time of listing on the stock exchange, the value of Spotify's shares it was around $145, and, within a few weeks their value had reached over $190 and currently spotify's stock value is over $270.
Conclusions
Investing with 10 euros is not only possible, but it is also very simple, thanks to the best trading platforms.
One of the best financial instruments to invest with only 10 euros are CFD contracts, but, thanks to financial leverage, it is possible to acquire fractions of shares or securities, and consequently invest 10 euros to buy fractions of shares whose cost is hundreds of euros.
Many trading platforms require a minimum deposit to open an investment account of around 100 euros or more, but once you open your account you can invest as little as 50 euros. Platforms like XTB ed eToro, allow you to invest even just 50 euros and are authorized to operate in Italy and certified by CONSOB.
FAQ
Can I invest just 10 euros?
Yes, you can only invest 10 euros thanks to CFDs or financial leverage that allows you to buy fractions of shares or securities.
What is a CFD?
A CFD is a contract for difference, it is a contract entered into with the broker in which the performance of the shares, securities, commodities or other financial instruments traded by the broker is declared, and if the performance should go according to forecasts, the user will get a profit. This tool was invented in the 90s and has spread since the 2000s thanks to the diffusion of online brokers and trading platforms.
What is leverage?
Leverage is a tool that allows you to buy fractions of shares or securities traded by a broker, in this way, you can also invest 10 euros in shares whose cost is several hundred euros.
Where can I invest with 10 euros?
To invest with 10 euros, you can use any online broker or trading platform, especially those that allow you to acquire CFD contracts and operate with financial leverage mechanisms. Among the best online brokers, I point out platforms such as XTB. These are platforms made available to users by international brokers, totally free and without commissions, which allow you to buy and sell shares, both on the primary market and on the secondary market for very few euros.