Is it possible to invest in stocks with only $5 and get a good return on investment?

I would like to start investing but can only afford to invest about $5 - is this possible? Are there any ways to increase my investment?

No, $5 won't even cover the commission fee. Try saving up at least $500.

Both Zecco.com and ING Direct have very low commissions: Zecco is $4.50 with a $2500 minimum balance, and I think ING is $4 with no minimum (they bought or partnered with Sharebuilder). Yeah, you need to save up a little more money...Put your $5 in a savings account, and keep adding to it until you get at least $100, then start investing.

The best place for you to invest your $5 is in a Money Market Mutual fund. However, there is usually a $2000 - $5000 minimum deposit required.... Except one - PayPal.com Yep, paypal does not require a minimum deposit. All you do is set up the account then opt to switch it to a Money Market Account so that you draw interest on the money you have in there. It is higher than a Bank Savings rate and higher than a CD rate also.

Another option is to buy a book about investing with the $5.00 and use that money as an investment in your education - about investing.

As for investing in stocks, you should really wait until you have about $5000 available to trade. The fee to make a stock purchase through an online trading company is around $10 - $15 for any amount up to like 1000 shares. You could invest in a single $5.00 share of stock, however, it would cost $15 to buy it, then it would also cost $15 when you wanted to make the transaction to sell it, so your $5.00 stock would have to increase in price to $35.00 a share just so that you would break even when it sold and you are more likely to see a very few dollars increase in a stock, expecially one that trades for $5.00. Although, ETrade stock is down under $5.00 at the moment from $25.00 in the last 6 months or less.

Best of luck and God Bless!
Todd

No, the fees to make a trade on average, cost more than $5 per transaction. Save your money and go buy yourself a lunch at McDonalds.