Invest $1000 – Best Ways To Invest $1000

Fact Checked by Gary McFarlane

If you live in the US and have $1,000 in your bank account, investing the money into the financial markets will be great. Nevertheless, banks are still paying small interest rates, and there are better investments with attractive interest elsewhere.

This article looks into the best ways to invest $1,000 – covering everything from stocks and ETFs to index funds and cryptocurrencies. We will also guide you through how to get started with a $1,000 investment at an FCA-regulated broker in few minutes.

#1 Broker to Invest $1,000 – eToro

1
$50Exclusive promotion
Our score10
  • Invest in a wide range of cryptocurrencies
  • Ability to copy more experienced investors and their decisions
  • eToro crypto wallet included which makes it beginner-friendly
0% Commissionstart TradingOur score 10

How To Invest $1,000 – Choose a Broker

If you want to invest $1,000 into the financial markets, first, you will need to open an account with a broker. Below you will find the best brokers that allow you to invest in several assets easily.

  • eToro – Best broker to Invest $1,000 US
  • TD Ameritrade – Broker for online stock trading and long term investing
  • Charles Schwab – Invest $1000 in a low-cost broker

You will find a full review of each broker listed above – all of which are suitable for a $1,000 US investment.

Best Ways to Invest $1,000 – Overview

There are lots of financial instruments that you can invest $1,000. We have listed five of them, which include:

  • Index Funds – Overall Best Way to Invest $1,000 US.
  • Stocks and Shares – Invest $1,000 into a variety of US Stocks.
  • Cryptocurrency – Invest $1,000 into Cryptocurrencies.
  • Gold – Invest $1,000 into Gold via an ETF
  • Copy Trading – Invest $1,000 by copying an Experienced Trader.

You will see a complete analysis of each of the above $1,000 investments further down – where you can decide if the asset is suitable for your portfolio.

How to Invest $1,000 US – A Quick Guide For 2021

The steps below will guide you on how you can successfully invest $1000 into the financial markets.

  • Step 1: Open an Account with eToro – eToro is an easy-to-use broker that offers several markets at low commissions. When it comes to investing $1,000, eToro is the best option. To open an account, click the ‘Join Now’ button, and enter your personal information.
  • Step 2: Upload ID – Upload a copy of your ID, which could be either your passport or driver’s license. eToro can verify your identity with your ID.
  • Step 3: Deposit Funds – Next is to add funds into your newly created eToro account. This broker supports debit/credit cards, e-wallets, and bank transfers.
  • Step 4: Search for Asset – There are many assets that you can find in eToro ranging from stocks, ETFs, cryptocurrencies, commodities, and more. To find the assets you want to invest $1,000 into, click the ‘Trade Markets’ button. All the markets that the broker offers will be displayed.
  • Step 5: Invest $1,000 – When you have selected an asset, click on the ‘Trade’ button. Enter the amount that you want to invest and then click the ‘Open Trade’ button.

With this, you have successfully and reliably invested $1000. Even if you are a newbie, this will guide you through the process involved.

67% of retail investor accounts lose money when trading CFDs with this provider.

Step 1: Where to Invest $1,000 – Full Broker Reviews

If you want to invest $1000 into the financial market, you should ensure that you choose the perfect broker. The broker you choose allows you to trade several markets. It should as well offer low fees and should be easy to use, especially for beginners.

We will review some reliable brokers where you can invest $1000 below.

1. eToro – Overall Best Place to Invest $1,000

especially if you are learning how to invest in the financial markets. eToro has over 20 million users and suits beginners. With this, newbies can find it easy to invest. Signing up with eToro is easy, and once you have registered, you will be allowed to trade several markets. If you want to trade stocks, this broker has thousands of stocks from 17 exchanges. You can also diversify your investments with Index funds and ETFs.

eToro has a cryptocurrency department that trades cryptocurrencies like Bitcoin, Litecoin, XRP, Ethereum, Dogecoin, and more. You can as well trade markets like forex, commodities like Gold and silver, and indices. You can invest in stocks and ETFs without paying any commissions. For other assets, you are charged only for the spread, which is also very competitive.

etoro review

There is the ‘fractional ownership’ tool that allows you to invest in different assets. You can invest from $50 into any asset of your choice, regardless of how much it is trading.

If you are a beginner or do not have time to watch the markets, you can utilize the copy trading tool. With it, you invest $1000 into an asset and trade passively. It means that you will choose an experienced investor and then copy their trades.

For instance, if a trader invests in Gold and closes their trade some days later at a particular profit, it will be reflected in your account. eToro controls some ready-made investments on your behalf. These investments are called CopyPortfolios.

This top-rated broker supports bank transfers and e-wallets like Paypal and Skrill. When it comes to the safety of eToro, you need not worry. The FCA regulates it, and the FSCS covers your investments.

Pros

  • You do not pay any commission to invest in a stock
  • You can start with as low as $50 per stock investment
  • eToro supports debit or credit cards, e-wallets, and bank transfers
  • This broker is safe and regulated by the FCA and covered by the FSCS
  • Has over 20 million users
  • Beginners can use it
  • Permits social and copy trading

Cons

  • It is too simple for technical traders
  • It does not support MT4 or MT5

 67% of retail investor accounts lose money when trading CFDs with this provider.

2. TD Ameritrade – Great place to Invest $1000

TD Ameritrade is a top-rated broker with an excellent trading platform that makes it suitable for beginners. TD Ameritrade gives you access to different trade markets, including stocks, options, mutual funds, forex, and more. It offers you a commission-free trade since there is no minimum deposit, trade minimums, data fees, and platform fees.

Pros

  • Training and educational materials for newbies
  • No minimum deposit and no platform fees
  • Access to different markets

Cons

  • There is a $6.95 fee per trade for penny stocks.
  • This broker does not grant access to international stock markets.

 67% of retail investor accounts lose money when trading CFDs with this provider.

3. Charles Schwab – Versatile platform to invest $1000

This broker offers a trading platform at no commissions. There are several markets available with this broker; Stocks, Options, Exchange Traded Funds, Mutual funds. This broker has a fractional share tool that lets you invest a small amount into the shares of any company. It does not support cryptocurrencies.

Pros

  • Supports fractional shares
  • Lots of markets to trade

Cons

  • It does not support cryptocurrencies

 67% of retail investor accounts lose money when trading CFDs with this provider.

Step 2: Best Way to Invest $1,000 – Choose an Investment

You have seen a review of the best brokers where you can invest $1000. Now let us look at the assets that you can buy.

As a US investor, you have thousands of markets at your disposal. Each of these markets have their rewards and risks, so to avoid losing out, you have to do proper research to enable you to choose wisely.

Let us take you through five of the best ways to invest $1000 in the US as a beginner.

Index Funds – This is the Best Way to Invest $1,000

Index funds allow you to invest in different assets in a completely passive way. Once you have invested your $1000, the index fund manager will determine which assets to buy and sell and when to do that. There are several index funds you can invest in successfully. You can consider the S&P 500. This stable index fund has been in operation since 1926 and tracks the performance of 500 large companies.

The S&P 500 makes up the largest and most popular brands in the world. For instance, if you invest $1000 into this index fund, it means that you will be buying shares in Apple, Facebook, Tesla, Disney, Ford, IBM, Microsoft, Amazon, Google, Nike, several others. The S&P 500 is calculated based on the size and performance of the respective company.

Moreso, the index fund manager will rebalance the portfolio every three months to ensure that it aligns with the broader US economy. Since its inception, this index fund has recorded average gains of 10% annually. Many of the stocks within the index fund pay dividends, so you will also earn your share of any distributions, and the index fund provider will pay this every three months. You can easily invest your $1000 into this index fund using eToro. The process is simple, and you are not charged any commission for it. There are other index funds, such as the Dow Jones, FTSE 100. With eToro, you can stake a minimum of $50. It means that with $1000, you can invest in various index funds.

Index Fund Pros

  • Best way to invest $1,000
  • Invest in several stocks through a single trade
  • Your portfolio is controlled on your behalf
  • It does not require previous investment experience
  • Low fees and commissions and allows you to withdraw at any time

Index Fund Cons

  • You have no control over the investments.
  • You are required to pay annual maintenance fees.

 67% of retail investor accounts lose money when trading CFDs with this provider.

Stocks and Shares – Invest $1,000

You can consider the traditional stocks and shares. You can buy shares from well-known companies with the hope that the value of the stock will rise with time. It would be best if you did this on a long-term basis rather than a short-term basis. With eToro, there are several stocks and shares to choose from. You can invest your $1000 into the US stock market like Amazon, Facebook, Google, and Tesla. There are other available stock markets too.

We advise you to invest your $1000 into varieties of stocks from different sectors and markets, rather than putting all your money into one stock. With eToro, you can do this using fractional shares. You can buy just a fraction of one stock with a minimum investment requirement per trade, starting at just $50.

When you diversify your portfolio, you reduce your chances of losing out entirely on your investment. Moreover, you should also consider the type of stock that you are about to invest in. There are growth stocks that are up-and-coming companies with new business patterns and could have a higher rise in the value of their stocks. In the same way, the risk involved in buying their stock is much too.

Stocks and Shares Pros

  • There are lots of stocks and shares to choose from.
  • You can diversify your portfolio and as well maintain complete control of it.
  • With the fractional share, you can invest small amounts into different stocks.
  • Most stocks pay dividends.
  • Suits long-term investments.

Stocks and Shares Cons

  • The stock market is volatile.
  • You are responsible for any stock you choose.
  • It requires patience.

 67% of retail investor accounts lose money when trading CFDs with this provider.

Cryptocurrency – Consider Investing $1,000 into Cryptocurrencies

The cryptocurrency market is fast rising and has become the most common, with a total valuation of over $2 trillion. The most popular cryptocurrency is Bitcoin. It is mainly because, since its launch in 2009, it has jumped from less than 1 cent to over $64,000 in 2021. Currently, there are over 12,000 digital currencies available, and you can all buy them from the comfort of your home.

Cryptocurrencies have been the best performing assets in the past few years. Notwithstanding, they are also the most volatile since they can increase by over 50% and decrease by the same percentage in a single day. It means that you have to consider some risk-management strategies when investing $1000 into crypto assets.

When investing $1000 into crypto assets, you can diversify, meaning that you can choose several tokens to invest in rather than putting all $1000 into a single cryptocurrency like Bitcoin or Ethereum.

With eToro, you can start with $25 per trade when investing in crypto assets. You can also use the dollar-cost average strategy to invest smaller amounts frequently, weekly or monthly.

You can also opt-in for eToro’s innovative CryptoPortfolio, where you invest in several cryptocurrencies managed by an experienced team of investors.

Cryptocurrency Pros

  • Since the past decade, it has remained the best performing asset
  • It is still new and gives you the chance to enter the market early
  • There are over 12,000 cryptocurrencies to choose from
  • Some cryptocurrencies have risen with over 10,000% in 2021
  • The market operates all round the clock. You can trade at any time.

Cryptocurrency Cons

  • It is very volatile. You can lose all of your $1000.
  • There are thousands of cryptocurrency and might be hard to choose which cryptocurrency to invest your money.
  • There is little regulation in the crypto industry, and many cryptocurrency projects are scams.

 67% of retail investor accounts lose money when trading CFDs with this provider.

Gold – Easily Invest $1,000 into Gold via an ETF

Gold has been an asset of value for over 4,000 years. Investing in Gold does not require you to buy physical bars, store and sell them to the nearest gold broker. With the help of online brokers, you can successfully invest your $1000 into Gold. You can quickly complete this process within a few minutes by investing through an exchange-traded fund (ETF). The ETF provider will buy and store Gold on behalf of its investors.

One of the largest providers in this industry is SPDR and holds about 1,000 tons of gold bullion. Like shares, Gold ETFs have been listed on public stock exchanges, and the value of each share that you own will reflect the market performance of Gold. Unlike Gold, when using ETFs, you can enter and leave the market at any time during standard market hours. You can cash out through your online broker. Gold is very volatile. It is better to trade it on a shorter-term basis.

Gold ETF Pros

  • It has remained a store of value for over 4,000 years
  • One of the best safe-haven assets available
  • Easy to invest in via an ETF
  • Can withdraw your Gold ETF investment at any time
  • There is no problem with storage when investing via an ETF
  • Attractive when the stock markets face some challenges.

Gold ETF Cons

  • More volatile than stocks
  • It is not the best asset to hold when the stock markets are doing well.
  • It does not yield dividends.

 67% of retail investor accounts lose money when trading CFDs with this provider.

Copy Trading – Passively Invest $1,000 into an Experienced Trader

eToro has a Copy Trading tool that allows you to invest your capital into a successful trader with an excellent track record. With this, you can copy an experienced trader and replicate their trade in your portfolio. For instance, let’s say you want to invest $1000 into an eToro trader specializing in stocks. The trader then apportions 30% of their portfolio into Amazon stocks. Based on your investment of $1,000, you will indirectly assign $300 to this position. If the trader decides to sell their Amazon shares a few weeks later at a profit of 20%, you will make $60.

eToro has thousands of verified experts that you can choose from across a wide range of assets, markets, and strategies, and even though you are copying a trader, you still have complete control over your portfolio.
You can add or remove assets at any time of your choice. You can as well decide to stop copying an investor, and you can withdraw at any time.
eToro’s copy trading feature is free, but there is a minimum investment amount of $500. With your $1000, you can copy two expert traders.

Copy Trading Pros

  • Invest in the financial markets passively
  • Lots of verified traders to choose from
  • You can add or remove assets from your portfolio at any time
  • You do not pay any additional fees or commissions to use the Copy Trading tool
  • You can select a trader based on your preferred asset or risk tolerance
  • Supported by eToro, which is being regulated by the FCA and covered by the FSCS
  • Minimum investment of $500 per trader

Copy Trading Cons

  • The trader you choose will decide their strategy and investments
  • No assurance of profit

 67% of retail investor accounts lose money when trading CFDs with this provider.

Step 3: How to Invest $1,000 Today – Detailed Walkthrough

This article has shown you the best ways to invest $1000 successfully and the best broker to use. To conclude this, you will see how to complete your $1000 investment with eToro – a safe and top-rated FCA-regulated broker that over 20 million people use.

Investing in all the assets mentioned above with eToro does not take time and can be completed within five minutes!

Open an Account

The first thing to do is to go to the eToro website and open an account. Enter your personal information and verify your identity by uploading a copy of your ID, either your passport or driver’s license.

how to join etoro

Deposit Funds

Deposit some money into your account so that you can start making investments. You can use any payment methods available such as debit/credit cards, bank transfers, and e-wallets like Paypal.

Search for Investment

With this, you are ready to make your first investment at eToro. When you have decided how you want to invest your $1000, search for the assets.
You can also click on the ‘Trade Markets’ button to see the investments eToro supports.

Complete Investment

An order box will appear on your screen after clicking on the ‘Trade’ button next to the asset you want to invest your money in. You will enter the amount of money you want to invest in your chosen asset.

Once you have entered the amount into the ‘Amount’ box, click on the ‘Open Trade’ button to complete your investment.

How to Invest $1,000 – Conclusion

This article has served as a guide to show you the best way to invest $1,000 into the financial markets and the suitable brokers to use.
In summary, eToro is the best place to invest $1,000. It is well regulated by the FCA and offers you several markets from index funds and stocks to Gold and cryptocurrencies. It is simple and easy to use, and within a few minutes, you can successfully invest your $1000 US.

eToro – Best Broker to Invest $1,000

1
$50Exclusive promotion
Our score10
  • Invest in a wide range of cryptocurrencies
  • Ability to copy more experienced investors and their decisions
  • eToro crypto wallet included which makes it beginner-friendly
0% Commissionstart TradingOur score 10

FAQs

What is the best way to invest $1000 US?

What are the best stocks to invest $1,000 US?

How do you invest $1,000 US risk-free?

Where to invest $1,000 US?

What is the best place to invest $1,000 US?

About Valentine Jermanus PRO INVESTOR

Valentine Jermanus is a skilled writer with broad knowledge of various subjects. He has written several works that have been published in blogs and different websites. He is passionate about financial investments and loves researching and writing on finance, trading, and investment.