How to Start Investing: A Beginner's Guide
Compare top investment platforms, learn the 5 essential steps, and start building wealth today
By Amiel Riss · Last updated: March 2026
Disclosure: Some links on this page are affiliate links. If you sign up through them, we may receive a commission at no extra cost to you. This does not affect our recommendations — we only feature platforms we believe are suitable for beginners.
Why Learning Comes Before Investing
Before you start investing, it's essential to understand the basics: what a stock is, what bonds are, how fees work, what compound interest means, and how the capital markets operate. Knowledge is the most powerful tool an investor can have.
5 Steps to Start Investing
- Build an Emergency Fund First
Make sure you have 3–6 months of living expenses saved in a liquid, accessible account.
- Learn the Basics
Understand the difference between stocks, bonds, ETFs, and index funds.
- Choose a Platform That Matches Your Needs
Consider fees, available assets, user experience, and regulatory protection.
- Start Small and Diversify
You don't need thousands to begin. Spread your investments across different asset classes.
- Stay Consistent — Invest Regularly
Set up automatic monthly contributions and avoid emotional reactions to market swings.
Which Platform Is Right for You?
Each platform below serves a different type of investor. eToro is ideal for beginners — it offers social trading and the ability to copy top traders with zero commission on stocks. Plus500 is designed for experienced traders who want access to CFDs on stocks, forex, commodities, and crypto with professional tools. Udemy is for those who prefer an education-first approach — learn investing fundamentals from world-class courses before putting money to work.
Investing FAQ: Common Questions Answered
How much money do I need to start investing?
You can start investing with very little — many platforms allow you to open an account with as little as $50–$100. The key is to start early and be consistent.
What's the difference between stocks and ETFs?
A stock represents ownership in a single company. An ETF (Exchange-Traded Fund) is a basket of stocks, bonds, or other assets that trades like a stock. ETFs offer instant diversification.
Is investing risky?
All investing carries some risk. However, historically, diversified long-term investing in index funds has produced positive returns over periods of 10+ years.
Which platform is best for beginners?
The best platform depends on your goals. For beginners who want simplicity and social features, eToro is a popular choice. The most important factors are: low fees, regulatory protection, ease of use.