How much money do you need to start investing in stocks? The truth that investors must know!!

Investing in stocks is an effective way to grow your money, often yielding returns much higher than savings or bank deposits. Due to this potential, many people are eager to try. However, for beginners, opening an account and preparing funds for investment are common questions.

Understand Clearly: How many types of securities accounts are there?

Before discussing the money needed, we must first know how many types of stock trading accounts exist, as each has different requirements and conditions.

Cash Balance Account: Choose this account if you’re a beginner

This is a straightforward account—only buy as much as you have in your funds. It’s simple, with no complicated considerations. Most serious investors choose this because:

✅ Advantages:

• Easy to calculate and control
• Automatically limits trading amount based on account balance
• Suitable for beginners
• If you want to buy more, just transfer more money in

Cash Account: For those who have studied already

This account type offers higher trading limits but requires a 20% deposit of the approved credit limit. For example, if you have a limit of 1,000,000 THB, you need to deposit 200,000 THB. Due to the T+3 settlement system, money management becomes more strict.

Margin Account (Credit Balance): For advanced investors

This account allows borrowing money from the broker to buy stocks. The advantage is investing with more than your actual capital, but it comes with strict requirements and high risks. Suitable only for experienced investors.

Stock price + minimum number of shares = money needed

Factor 1: Stock price

Stock prices on the Thai stock exchange fluctuate constantly, moving with market conditions and company performance. For example, OR shares at 20.50 THB or PTT at 50 THB per share. The price determines the initial amount of money to prepare.

Factor 2: Minimum trading lot (Board Lot)

The Thai stock exchange sets a minimum trading lot of 100 shares per order. Therefore:

Money needed = Stock price × 100 shares + commission

Example: Buying PTT at 50 THB requires 50 × 100 = 5,000 THB plus a 0.287% commission, which is 14.35 THB, totaling 5,014.35 THB.

In fact, some brokers allow smaller orders (Odd Lot) of just 1 share, but using the 100-share minimum makes managing funds and tracking the portfolio easier.

If you have little money, should you diversify or focus?

Diversify: Buy multiple stocks

✅ Advantages:

• Spread risk; if one stock drops, another might rise
• Reduce overall portfolio risk

❎ Disadvantages:

• Requires more funds
• Need to monitor multiple stocks, taking more time
• Sometimes individual stocks are too small to see significant growth

Focus: Buy one stock

✅ Advantages:

• Use less money
• Can analyze and monitor more deeply
• Clear profit and loss visibility

❎ Disadvantages:

• If that stock has problems, losses can be significant
• No diversification

How much money is needed to start investing in stocks?

According to Thai stock exchange rules, a minimum of 100 shares is required. Therefore:

• Cheap stocks (priced at 10-20 THB): Need 1,000-2,000 THB
• Mid-range stocks (priced at 20-50 THB): Need 2,000-5,000 THB
• Expensive stocks (priced at 50 THB and above): Need 5,000 THB or more

Additionally, you must add trading fees, brokerage commissions, and other charges.

The money used for investment should be “spare” funds

This is a crucial point for beginners to understand:

⚠️ Do not use money needed for daily living – stock markets are volatile and losses are possible.

⚠️ Do not borrow money to invest – high risk and may lead to debt.

✅ Use surplus funds – money left after covering daily expenses and emergency savings.

Planning before starting stock investment

Before buying your first stock, consider:

1. Financial readiness – Do you have enough money to “lose”?
2. Investment horizon – Short-term or long-term?
3. Investment goals – How much profit do you aim for?
4. Market knowledge – Study the basics.
5. Choosing a broker – Select one with international standards and trustworthiness.
6. Fees and commissions – Compare costs among brokers.

Summary

How much money do you need to start investing in stocks?

The amount depends on the stock price you’re interested in, with a minimum of 100 shares. Generally:

• Minimum: 1,500-2,000 THB (for cheap stocks)
• Typical: 3,000-10,000 THB (for convenience and diversification)

Remember, there’s no such thing as too little money to invest—as long as it covers 100 shares and transaction fees. Most importantly, use “spare” funds that you can afford to lose and have a clear investment plan.

Stock trading is a good investment avenue, but always keep in mind that a good investment is one you understand and are willing to accept the risks.