Investing With a $ 200 Dollar Seed Capital Account – More Than One Way to Skin a Cat

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Often new investors look immediately to the stock market when considering investing some money for the future. The problem with the stock market at very low levels of seed capital like $ 200 dollars is that the returns are too slow, historically the stock market returns around 14% or around the same as real estate. But there are better ways to increase and compound your money at lower levels.

A 14% return on $ 200 is just $ 28 and the brokerage fees would be around that much too. So you would have made nothing for the whole year. The thing about being a retail investor is that you are at the end of the food chain. You are last to profit and first to lose money in the stock market.

The reason for this, is that all the money is made, or at least the bulk of the money is made by the actual company that is selling its shares. The activity it is involved in is where the money is and this brings us back to investing in the real world. Most retail investors are happy to accept such low returns because of the risk factor. The idea that their money is safe and the share price will, (praying on your knees) not fall or go against you is in many cases quite erroneous.

The safest place to put your money is in your own hands. Nobody will care more about keeping your capital intact and making a return more than you. Becoming your own investor source is the key, even at the $ 200 dollar level of seed capital.