Investing Product Review: MyStockFund

When it comes to online discount stock investing, it can be tough to choose one. I had a look at MyStockFund, and it looks like a great resource for beginning stock investors. It is especially helpful because there is no minimum balance required, and you can start with as little as $10. For those who have a fear of investing, or don't feel as though they have enough money to get started investing, MyStockFund can be a great option.

Minimum investment account balance

One of the things I find refreshing about the MyStockFund online broker is the fact that there is no requirement for a minimum balance. Some online brokers require that you have $1,000 or $2,000 or more in your investment account in order to keep it active. Having no minimum balance is very encouraging for the novice investor who is starting out small.

Additionally, it is possible to invest as little as $10. This way you can start small. Virtually anyone can start investing for $10. It is a great confidence booster. And the fact that it is possible to buy for as little as 99 cents means that your account is unlikely to be overly depleted by paying commissions.

Dollar cost averaging

One of the great features of MyStockFund is that it is possible to do dollar cost averaging. This means that you can buy portions of shares. And you can set it up so that you automatically invest every month. You can set up your account so that each payday, money is deducted and placed in your investment account to automatically buy stock shares. And because dollar cost averaging allows you to buy fractional shares, you can get as much (even half shares) as your automatic investment will buy. This ensures that you get in the habit of regular investing.

Another bonus is that you can set up your account for free dividend reinvesting. This means that when your investments pay a dividend, you can automatically turn around and invest it again. Dividend reinvesting is an important part of a good, solid investment strategy, and doing it automatically will ensure that you don't miss out on anything.

Retirement accounts

Many people don't think of putting money in retirement accounts as investing, but it is. MyStockFund offers IRA accounts that you can open. And, because anyone who pays taxes can open an IRA, it is possible to set up this retirement account outside of your workplace. Another investment account with tax advantages is a good thing.

Disclaimer: I am not an investment professional. This should not be construed as investment advice. All investment carries the risk of loss. Before investing, do your own research and/or consult with an investment professional.