Can you tell me about the $1000 dollar minimum for stock trading?

Question

Does this mean you need a minimum of $1000 in your brokerage account or does it mean that you have to spend a minimun of $1000 on shares from ONE company?

Answer 1

This $1000 minimum is non-existant unless the particular company you're investing with has imposed it or you want to invest in a mutual fund which has a minimum of $1000.

If your investing company has imposed a minimum, it would most likely be, $1000 in your brokerage account and not per stock.

In general there is no minimum although if you pay $30 per trade, it doesnt make much sense to buy stocks with much less than $1000 since the commisions will eat up your profit.

Answer 2

I am going to assume that you are talking about the $1000 minimum needed to open an account at your brokerage firm.  In that case, it does not mean that you have to spend a minimum of $1000 on shares from one company.  Instead, it simply means that you need a minimum of $1000 deposited in your account.  This minimum requirement may vary among different brokers.  For example, I use Firstrade and they actually do not have a minimum deposit requirement.

Answer 3

There's no fixed requirement of $1,000 for trading.

Most brokerage firms have minimum requirements for opening an account.  

This minimum is really your equity required, it can be in cash, stocks, or bonds.  The firm does not want accounts to have values less than their minimums.

The minimum means that you must put up that amount, you can use it to purchase securities or just leave it in a money market. as long as there is enough in the account to meet the minimum.

You open an account and buy stock using the minimum as a guideline, if the market falls and your equity falls (below the minimum) the firm will not require to put up more money.

The minimums are used since it cost firms to open and maintain accounts, so they don;'t want accounts with little or no value.,