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If you are new to the world of stock market trading and looking to invest, say, C$ 100, one of the ways to go about it is to open a brokerage account with securities affiliated app and link your bank account to it.
These 100 bucks, advisably a surplus amount from your savings, can be invested in large-cap or dividend-paying stocks.
If you are looking for a short-term investment, you can go for mid-cap and small-cap stocks, which are riskier than a large-cap stock but could offer higher returns in the short-term period. This is one circumstance where short-term investing or trading does not match long-term prudence.
A C$ 100 investment in the stock market can earn you healthy returns, but it comes with some risky trends. For instance, the COVID-19 pandemic had caused the market to crash in 2020. But eventually, the stock market also hit lifetime highs as economies recovered from the pandemic lows.
Some investors prefer the safe route of banks when it comes to parking their funds. While depositing your excess money in a savings account will generate a low-interest rate in years and, in some cases, wash away your interest earnings due to higher inflation, there will be minimal risk to your money.
Investing C$ 100 into some value or growth stocks, on the other hand, will come with considerable risks as well as the chance to boost up your portfolio in a span of months. Historically, stock markets have reportedly surpassed almost every other investment option in the last few decades.
You can also choose to park your excess cash in exchange-traded funds (ETFs), as they are often considered to more stable in growth. Their designated fund managers track the markets and are expected to invest your money wisely.
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Investing C$100 Through Fractional Stock App & Regular Brokerage
An investor can also sign up for fractional stock investing app, where one can build a diverse portfolio of giant firms’ stocks, such as Shopify (TSX:SHOP), Barrick Gold (TSX:ABX), Suncor (TSX:SU), etc within the C$ 100 investment range. In other words, if you want to invest in Shopify, which is trading at about C$ 1,500 apiece, you can buy a fraction of its common share. For example, 0.01 share for C$ 15.
As mentioned earlier, to begin investing in an individual company’s stocks, one can open an investment account with a brokerage. In order to invest C$ 100, you will likely have the options to invest in mid-cap and small-cap stocks. This is why some large-cap companies opt for share-split. For example, you could buy Canadian Pacific Railway (TSX:CP) stock, which under C$ 100 apiece, because the railway enterprise recently announced its share-split at 1/5.
An individual stock could give you higher returns against the benchmark index in the long-term period. A single stock could also swell multiple folds over the years to become worth a massive amount. In case of CP Rail stock, for instance, an investor who put in, say, C$ 100, in this share 20 years back, their investment is likely to have grown over C$ 300,000 now.
The above constitutes a preliminary view and any interest in stocks should be evaluated further from investment point of view.
