The Beginner’s Guide on Micro Investing 2021 Update.
Investing can be intimidating to those who have no clue what they’re doing. But most smart people realize that investing is a great way to save money for the future. No matter your goal, sometimes just getting started is the hardest part.
This article aims to guide you on all you need to know about micro-investing.
When it comes to investing, people in Europe, the U.S., and elsewhere around the globe find themselves wary of getting involved, even if investing can help them achieve their long-term financial goals. Information gaps, such as the idea that you need a lot of money to start investing, are common factors in this hesitancy.
Many people think investing is intimidating or simply out of their reach due to limited finances. But new technology has made investing more accessible, with some micro-investing platforms only requiring a few dollars to get started.
What is Micro Investing?
Micro-investing is an alternative means for investing small amounts of money without using a traditional bank or brokerage. It aims to remove common barriers to investing, like account minimums and per-transaction fees.
We can classify micro-investing apps into two categories, including micro-investing apps that allow investments as small as $5 and spare-change investment apps that round-off your purchase to the nearest dollar amount and contribute the difference to your savings account.
Micro Investing Platforms
If you’re new to investing and want to explore fresh, up-and-coming investment opportunities, consider investing with a startup. Here are several micro-investing platforms that focus on supporting entrepreneurs and startup companies.
1. Trove Finance
Trove Finance is Nigeria’s first micro-investing platform that allows users to trade Nigerian, Chinese, and U.S. Stocks, ETFs, Bonds, and Cryptocurrencies. The best part is that you can trade with as low as ₦1,000, for Nigerian stocks and cryptocurrencies, and as low as $10 for foreign stocks.
SeedInvest provides an equity crowd-funding platform that allows anyone to invest in startup companies. Something that used to only be accessible to venture capitalists and other elite investors. Since its inception in 2012, it has raised over $100 million for over 150 startups with a network of more than 250,000 investors.
CowryWise is a financial technology company that helps people save and invest through a mobile application.
With CowryWise you can invest in low, medium, and high-risk investments. Some of these investments include Nigerian Eurobond, Mutual funds, and other money market securities provided by third parties.
- Saving interest: 10%
- Investment interest: varies
4. Investment One
This platform is part of GTB Asset Management wholly-owned subsidiary of Guaranty Trust Bank Plc (GTB).
This platform offers distinctive business in financial services such as asset management, stockbroking, trust and pension fund management services, and others.
- Interest rate: Varies
- Investments: Savings, Investment banking, and private banking
5. Stanbic IBTC
Stanbic IBTC provides both local and foreign investors various investment packages such as pensions, wealth management products, real estate, traditional loan calls, and financial services including mutual funds.
- Savings interest rate: varies
- Investments: Financial services and pensions management
Why Do People Like Micro Investing?
Micro investing makes saving a few dollars or naira here and there pretty easy. It’s a set-it-and-forget-it approach. It doesn’t require strategic saving; instead, it makes use of spare change you might throw on your counter after work. That’s definitely low effort.
You also don’t have to have a lot to get started! You can start by investing the change leftover from your morning snack! It doesn’t get much easier than that, if easy is what you’re looking for.
Is it worth it?
I’m telling you! This is a great option for a beginner investor who wants to get their feet wet before diving into the investment world. While it won’t make you rich, it can help you boost your income by a few hundred dollars a year.
Additionally, many micro-investing platforms have resources that can help you learn the basics of investing to give you more confidence when you’re ready to start making bigger investments.
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