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Invest $5000 | Best Ways to Invest $5,000


Ten years ago, financial experts would recommend index funds, investing in high-yield savings accounts, or opening an account with peer-to-peer money lending platforms. However, things have significantly changed over the past few years. One important point to note here is that by 2021 the world of investment is contemplating more varied ways than before. For instance, Robo-advisors, cryptocurrencies, and other modern assets platforms are now widespread. 

This guide will talk you through the best ways to invest $5000, covering a range of methods to strategically grow your financial position over time.

#1 Broker to Invest $5,000 – eToro

How to Invest $5,000 – Choose a Broker

If you want to invest money that you may not need to use for a more extended period, you must choose the best strategy. Note that some methods are likely to work better for you than others. Below are a few of the most viable places to invest your $5,000.

  • eToro – The best option to invest $5000 in the US
  • Robinhood – Diversify your investments with Fractional Shares
  • BlockFi – No Hidden Charges on Your Crypto Investments

Best Ways to Invest $5,000 in the UK – Overview

There are hundreds of options to invest $5,000 from your home comfort. This paper narrows the option to the following list:

  • Cryptocurrency – You can opt to invest in the crypto business. 
  • Shares and Stocks – A variety of stocks are available for you to invest $5,000 in the US. 
  • Real Estate – You can generate profit from the real estate business. 
  • Roth IRA – It allows you to leverage post-tax money in retirement accounts. 
  • College Savings Accounts – It enables users to prepare for college expenses. 

Here is a complete guide for these investment options. 

How to Invest $5,000 in the UK – A Quick Guide For 2021

The procedure to invest $5,000 in the stock markets is accessible in the US. In any case, you can follow these steps to place your first investments. They include:

  • Step 1: Open an eToro Account  The platform is one of the most popular and most reliable options to invest $5,000. You ought to click on Join Now to commence the account opening process.
  • Step 2: Upload ID  You can upload your ID, driver’s license or passport to verify your personal information.
  • Step 3: Deposit Funds  The account will allow you to deposit funds with bank transfers, e-wallets, and credit cards.
  • Step 4: Search Asset  You should click on the Trade Button to choose the apt assets for your investments. Popular options include commodities, crypto, ETFs, and eToro support stocks.
  • Step 5: Invest $5,000  You can then click on the Trade button and the Open Trade button to submit your investments.

67% of retail investor accounts lose money when trading CFDs with this provider.

Step 1: Where to Invest $5,000  – Full Broker Reviews

It would be best to opt for the best broker to reap a higher profit from the financial market. Best platforms get regulated by the FCA, provide access to various markets, and feature low fees. Also, it would be best to opt for a straightforward platform. Here is a list of reliable brokers that you can consider. 

1. eToro – The Best Option to Invest $5,000

Our research concluded that eToro would be the best broker to opt for when investing your $5000 into the financial markets. It is a top-rated trading platform with more than 20 million users and is suitable for newbies. It comes with a straightforward user interface that makes it a better option for beginners. The process to create an account, deposit your money, and place the first investment can take as little as five minutes.

Once you complete the account registration, you will access a pool of financial markets. The good thing is that the platform offers hundreds of stocks for investors looking for shares from 17 different exchanges. It covers stocks from Asia, Europe, the US, and the UK. 

etoro review

Besides, the platform also offers ETFs and index funds, which can be an excellent option for investing your $5000. Above all, the platform provides a crypto department that is suitable for additional investments.

In general, it is easy to deposit money into your eToro account if you find this platform exciting and promising to give you profit on your $5000 investments. You can make instant deposits using a credit or debit card. 

Besides, this broker also supports bank transfer options and e-wallets like Skrill and PayPal. Also, FCA regulates and authorizes all eToro functions and markets. Another great tip is that FSCS will cover all your investments in terms of safety and security.

Pros

  • The social trading tools allow users to generate default investments portfolios.
  • It is ideal for beginners.
  • The platform has over 20 million users, which is promising.
  • FSCS covers the platform, and FCA regulates its operations.
  • It allows bank transfers, e-wallets, and credit cards.
  • The minimum investments on the platform are as low as $50.
  • It charges no commission and also features zero stamp duty.

Cons

  • It does not support MT5 and MT4.
  • The platform is too primary for experienced traders. 

 67% of retail investor accounts lose money when trading CFDs with this provider.

2. Robinhood – Diversify Your Investments with Fractional Shares

This platform has a moderate risk level. If you want to trade your money in ETFs or stocks, but you also want to ensure you remain more diversified, going for a fractional share could be the best idea. Generally, fractional shares mean investing a certain percentage of your total money or shares. Instead of buying a full share, going for fractional shares allows you to trade your $5,000 in several ETFs or stocks. Thus, you spread the risks.

Obtaining fractional shares allows you to own slices or fractions of renowned companies around you. Yet, the price of one share of AMZN (Amazon) stock is currently above $3,000, making it slightly a significant barrier to entry. All the same, you can invest your investment into a section of Amazon stock. 

Robinhood is one of the most popular modes of fractional shares investment. The reason for this is that the app is user-friendly, and trading is free. Upon signing up and opening your account, you may start earning free stock worth $225. Another great check-out option is Stash. 

Pros

  • It allows you to invest your $5,000 across various ETFs and stocks.
  • This option makes it possible to trade in fractional shares using any given online brokerage company. 
  • With this method, you can invest in popular stocks without necessarily buying a whole share. 

Cons

  • Choosing a brokerage company that asks for commissions may increase the cost. 
  • Only some brokerage firms allow you to trade in fractional shares.

 67% of retail investor accounts lose money when trading CFDs with this provider.

3. BlockFi – No Hidden Charges on Your Crypto Investments

Just like the above method of investment, the risk here is also moderate….



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