How much money do I need?

I would recommend trading with at least $500 – $1,000 for starters. This way it will allow you to see your gains that range from anywhere between 5% – 100%. If you have more money to trade with, it makes it that much easier to see your profits. Take a look at the three charts below which will show you your potential profit ranging between 5% – 40% when trading with $500, $1,000, and $2,000. This will help paint the picture of why trading with a minimum of $500 – $1,000 is a good amount to start with.

Please note that the $0 commission fee below only applies to non-OTC (over the counter) stocks.   All other stocks that are classified as a OTC (over the counter), there will be a commission fee when buying or selling a stock.  TD ameritrade commission fee is $6.95 to buy and $6.95 to sell a stock.  This rate can be negotiated to a lower price but that will depend on the amount of trades you execute.  It always a good idea to call your broker and ask.

% Gain5%10%15%20%25%30%40%
Trading Funds$500$500$500$500$500$500$500
Commission Fee$0$0$0$0$0$0$0
Profit$25$50$75$100$125$150$200
Total Return$525$550$575$600$625$650$700
Trading with $500

% Gain5%10%15%20%25%30%40%
Trading Funds$1000$1000$1000$1000$1000$1000$1000
Commission Fee$0$0$0$0$0$0$0
Profit$50$100$150$200$250$300$400
Total Return$1,050$1,100$1,150$1,200$1,250$1,300$1,400
Trading with $1000

% Gain5%10%15%20%25%30%40%
Trading Funds$2000$2000$2000$2000$2000$2000$2000
Commission Fee$0$0$0$0$0$0$0
Profit$100$200$300$400$500$600$800
Total Return$2,100$2,200$2,300$2,400$2,500$2,600$2,800
Trading with $2000

If you don’t feel comfortable with trading with real money as a new trader, you have the option of using the paper money account which is free when you open an account (add TD affiliate link).  This will allow you to practice trading with paper money to get your feet wet.  Please note that the paper money account is only available when using the thinkorswim desktop platform or thinkorswim mobile app. 

thinkorswim desktop
thinkorswim mobile