how to invest $5000-250

How to start investing with a deposit between $5,000 to $9,999

Investing $5,000 to $9,999 presents you with multiple options but do you know which ones are best for you?

Putting your money in a bank account offers security, but you can get your money to work for you if you invest suitably. When investing some of your options include shares, futures and trading in foreign exchange and each comes with its own nuances. Learning about various investment alternatives is important because of the different levels of risk involved, and you may also have to deal with aspects like commissions, fees and minimum amounts.

Compare investment options

Updated August 18th, 2019
Name Product Monthly fee Standard Brokerage Fee Margin trading - Online IPOs / Floats International
$0
$8.00 or 0.1%
Yes
No
Yes
Special offer: Earn up to 10,000 Qantas Points when you start trading on a new IG Share Trading account. T&C applies.
Low brokerage fees on Australian and international shares.
$0
$6.99 or 0.1%
Yes
No
Yes
Access over 19,000 Australian and global shares.
$0
$15 for first 10 trades
Yes
Yes
No
Enjoy tiered brokerage fees, Bell Potter research and eligible market-to-limit orders placed onto the ASX in under a second. For a limited time, get a custom deal based on your trading preferences when you switch to Bell Direct.
$0
$11 for first 10 trades
Yes
No
Yes
Trade shares, warrants, options, ETFs, managed funds, bonds and IPOs with CMC Markets today.
$0
$9.50
No
No
No
Trade ASX-listed shares for a flat fee of $9.50, regardless of the trade size. New customers receive free access to Community Insights with SelfWealth Premium for the first 90 days. Follow other investors and benchmark your portfolio performance.

Compare up to 4 providers

Updated August 18th, 2019
Name Product Minimum Opening Deposit Minimum spread Commission Minimum Trade Size Platforms
AU$100
0.7 - 3.0 pips
$0
0.01 lots
Plus500 Web Trader
Finder exclusive offer: Open a new trading account and receive a welcome bonus of AU$120 when you deposit your first $400 and enter the bonus code “Special200”. T&C’s apply.
Open an account and experience Plus500's easy-to-use proprietary trading platform, 24/7 online chat support and free real-time forex quotes.
$0
0.5 - 1.22 pips
$0
0.01 lots
MetaTrader 4
At Pro
Advantage Web
Special offer for new customers: Get a cash bonus of up to $1,000 when you open a new account with City Index and meet minimum deposit and trade requirements. T&Cs apply.
Choice of trading platforms, integrated Reuters news and device-synching so you can monitor trades across multiple devices.
$0
0.6 - 1.5 pips
$0
1 lot
MetaTrader 4
ProReal Time
Introductory offer: For the first two weeks of trading, take advantage of IG's lower minimum trade sizes to help you build confidence.
Choice of trading platforms. Choose optional extras like advanced charting, reporting and order types. Over 90 currency pairs to choose from.
AU$3,000
0.6 - 1.1 pips
$0
5,000 units
SaxoTrader
SaxoTraderGO
Competitive spreads, plus integrated news spreads and reports from Saxo's team of in-house analysts.
$200
1.0 pip
$0
$200 (to CopyTrade)
eToro Trading Platform
Social trading, advanced charting tools, plus receive exclusive benefits through the eToro Club (membership is tiered based on the equity in your trading account).
US$200
0.0 - 0.1 pips
AU$3.50 per 100k traded
0.01 lots
MetaTrader 4
MetaTrader 5
cTrader
Choose from a range of fee-free funding methods, plus a suite of 10 different apps available as part of Pepperstone's Smarter Trading Tools.
AU$200
0.0 pips - 1.0 pips
$0
0.01 lots
MetaTrader 4
MetaTrader 5
WebTrader
Standard STP or raw ECN accounts available. Choose from 15 different trading platforms. A host of bonuses, rebates and promitions on offer to suite any trader.
AU$200
0.1 - 1.1 pips
$0
0.01 lots
MetaTrader 4
MetaTrader 5
Low minimum opening deposit, real-time news and pricing, and customisable alerts based on news or technical trading indicators.
$200
From 0.0-0.1 pips
AU$3.50 per 100k traded
0.01 lots
MetaTrader 4
MetaTrader 5
cTrader

Compare up to 4 providers

Name Product Past Performance - 1 Year Past Performance - 3 Years Past 5 year performance Calculated fees on $50,000 balance
-1.36%
New fund
New fund
$358
Earn Velocity Frequent Flyer Points for making contributions to your super. T&Cs apply.
1.21%
7.56%
7.84%
$467.65
Enjoy discounted rates on banking products with ME Bank and health cover with GMHBA health insurance.
-0.22%
4.86%
5.43%
$603
Choose between 14 different investment options, including a socially responsible option.
1%
6.59%
6.39%
$598
Socially responsible and ethical investment options available.
2.85%
7.57%
N/A
$395
Pay no entry, exit or switching fees and enjoy a range of different investment options with QSuper.
New Fund
New Fund
New Fund
$291.50
Superestate focuses on investing your super in residential properties and charges some of the lowest annual fees in the market.
1.9%
7.51%
7.47%
$523
Earn a Retirement Bonus of up to $4,800 when you open a new Income account. T&Cs apply.
1.14%
6.95%
6.73%
$549.42
2.54%
7.21%
7.19%
$548.53
Get access to one-on-one professional advice at no additional cost.
0.5%
4.95%
6.29%
$662
Choose investment options that align with your personal values.
-2.16%
5.03%
5.41%
$643
Access offers, deals and discounts through the BT Super Benefits Now program.
1.84%
7.78%
7.87%
$565
Enjoy discounted health insurance with HCF.
1.73%
6.45%
7.24%
$682.65
Get fee-free advice on your superannuation as a BUSSQ member. T&Cs apply.
-1.04%
4%
5.27%
$581.80
Receive a complimentary financial planning session with a Suncorp financial planner.
2.17%
8.44%
8.32%
$621.76
Enjoy discounted rates on banking products with ME Bank.
0.99%
6.43%
7.56%
$529.76
Access simple personal advice at no cost.
N/A
N/A
N/A
$728
Gain access to lifestyle offers and benefits on NAB financial products and services.
0.63%
6.23%
6.24%
$497.60
Earn rewards and vouchers through the AIA Vitality program.
0.88%
6.56%
7.45%
$361
A flexible industry super fund for people who work in Australia’s higher education and research sector.

Compare up to 4 providers

The information in the table is based on data provided by Chant West Pty Ltd (AFSL 255320) which is itself supplied by third parties. While such information is believed to be accurate, Chant West does not accept responsibility for any inaccuracy in such information. Chant West’s Financial Services Guide is available at https://www.chantwest.com.au/financial-services-guide . Finder offers no guarantees or warranties about the data and we recommend that users make their own enquiries before relying on this information. Performance, fees and insurance data is based on each fund's default MySuper product. Where the performance, fees and insurance data for the MySuper fund vary according to the member's age, results for individuals between 40-49 years of age have been shown. Past performance is not a reliable indicator of future performance.

*Past performance data is for the period ending December 2018.
Disclaimer: Performance, fees and insurance data is based on each fund's default MySuper product. Where the performance, fees and insurance data for the MySuper fund vary according to the member's age, results for individuals between 40-49 years of age have been shown. This article is general advice. You should consider your own personal circumstances before deciding if a superannuation product is right for you. Superannuation is a long term investment and past performance is not indicative of future performance.
Rates last updated August 18th, 2019
$
$
months
Name Product Maximum Variable Rate p.a. Standard Variable Rate p.a. Bonus Interest p.a. Fees Min Bal / Min Deposit Interest Earned Product Description
Rabobank Online Savings High Interest Savings Account
2.75%
1.30%
1.45%
$0
$0 / $0
Maximum variable rate of 2.75% p.a. for 4 months, reverting to a rate of 1.30% p.a. No deposit or withdrawal conditions. Available on balances below $250,000
UBank USaver
2.41%
1.35%
1.06%
$0
$0 / $0
Ongoing, variable 2.41% p.a. when you link your USaver account to a UBank Ultra transaction account and transfer at least $200 per month into either account. The linked transaction account has no monthly fees and no international fees. Bonus interest available on balances up to $200,000.
AMP Saver Account
2.75%
1.65%
1.10%
$0
$0 / $0
Introductory rate of 2.75% p.a. for 4 months, reverting to a rate of 1.65% p.a. The bonus rate offer is for new AMP Saver customers only, and applies to the first $250,000 deposited.
Suncorp Growth Saver Account
2.05%
0.20%
1.85%
$0
$0 / $0
Ongoing, variable 2.05% p.a. when you make a total deposit of at least $200 and make no more than one withdrawal. Available on the entire balance.
HSBC Flexi Saver Account
2.15%
0.65%
1.50%
$0
$0 / $0
Ongoing, variable 2.15% p.a. when you grow your balance by $300+ per month. Earn bonus interest even if you make withdrawals during the month. Available on balances up to $5,000,000.

Compare up to 4 providers

Rates last updated August 18th, 2019
$
Name Product 3 Mths p.a. 4 Mths p.a. 6 Mths p.a. 7 Mths p.a. 12 Mths p.a. 24 Mths p.a. Interest Earned
UBank Term Deposit Account
1.95%
1.95%
1.95%
-
1.95%
-
ANZ Term Deposit
1.00%
1.00%
1.00%
1.00%
1.05%
1.45%
Citibank Term Deposit 250K
2.40%
-
2.40%
-
-
-
ANZ Advance Notice Term Deposit (31 days notice required for early withdrawals)
1.60%
1.45%
1.60%
1.45%
1.70%
1.60%

Compare up to 4 providers

Rates last updated August 18th, 2019
$
$
months
Name Product Maximum Variable Rate p.a. Standard Variable Rate p.a. Bonus Interest p.a. Fees Min Bal / Min Deposit Interest Earned Product Description
ANZ SMSF Cash Hub
1.00%
1.00%
0.00%
$0
$0 / $0
This account is for SMSF trustees to access their SMSF cash balance, to make payments and investments, and to receive income to the one account.
BankVic SMSF Saver
1.90%
1.90%
0.00%
$0
$0 / $0
Ongoing, variable 1.90% p.a. Available on balances up to $5,000,000.

Compare up to 4 providers

What are my options when I want to invest $5,000 - $9,999?

Pay outstanding debt

Chances are you have existing debt in the form of outstanding credit card dues as well as different types of loans. Spending some of your money to pay these off is a good idea, not only because it helps you become debt-free faster, but also because doing this can help you save some money in the form of interest. Fees and charges can apply when you repay some kinds of loan ahead of time.

Contribute to your superannuation

If you, like most others, are saving for your retirement, contributing to your superannuation fund can be a good idea. Your contribution from post-tax income is not subject to tax up to certain limit. If you make contributions from post-tax income and earn less than $50,454 per annum you benefit further because the government matches your donations and this money adds to your super as well.

Compare super fund accounts

Managed funds

A managed fund consists of multiple investors who have a investment manager making trades on their behalf. You can benefit through the expertise of the investment manager without having to do groundwork on your own, but you can’t expect guaranteed returns.

Share market

Seasoned investors tend to dabble in the share market because it normally offers better returns than bank accounts. By buying a share, you’re essentially getting a unit of the company in question. If the company generates profits, you stand to earn dividends, and you can also benefit by increase in share prices.

Compare share trading accounts

Options

Options are contracts that let you buy or sell underlying assets at specified prices on specified dates, without actually having ownership. The time period they remain valid for can vary from a few weeks to a few months. Investing in options requires that you learn the tricks-of-the-trade well, failing which you can lose money.

Futures

You can benefit by investing in futures through considerable leverage. With $5,000, you can control a futures contract worth around $75,000, but needing access to additional cash if there’s a margin call can be a problem. Besides, the end result can be you losing more money than you’d started off with.

Trading foreign exchange

You can benefit through noticeable leverage by investing in foreign exchange, but you can also suffer significant losses. Learning how this field works in not difficult and you don’t have to invest much when you start.

Compare forex trading accounts

Term deposits and high interest savings accounts

Anyone looking for guaranteed returns can consider setting money aside in a term deposit or a high interest savings account. While a term deposit requires that you put your money away for a chosen time period, high interest savings accounts offer easier access to funds.

Compare Term deposit and HISA accounts

Cash management accounts

A cash management account comes with multiple components such as a savings account, an online trading platform and a super fund. Such accounts let you handle your investment requirements through a single platform.

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How do I compare investment products?

  • Minimum amount requirements. If you want to open a term deposit the starting point is usually $500 or $1,000. In the share market, you can buy just one share, and how much you’ll have to spend depends on the share’s value. You can start investing in futures with little money and this is also the case with trading in foreign currency.
  • Fees and commissions. If you’re planning to go the shares and futures way expect to pay some kind of brokerage fees. If you’re hoping to pay fixed fees per trade you’re better off looking at online brokers because full service brokers normally charge fees as percentages of all trades and deal with high net-worth clients. High interest savings accounts and term deposits tend not to charge any account keeping fees.
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What are the pros and cons to investing in an asset other than a savings account?

Pros

  • Government guarantee. The Australian Government Guarantee Scheme provides security to deposits of up to $250,000 per person per institution, and you can fall back upon this scheme in case your financial institution has trouble in honouring your deposit. To make the most of this scheme, you can consider banking with multiple institutions when cumulative balances in any one institution crosses the $250,000 mark.
  • Guaranteed returns. Putting your money in a savings account is a safe bet because you’ll continue to earn a standard variable rate for as long as you keep money in the account. Online banks tend to offer better rates than conventional banks because they benefit through reduced overhead costs. Credit unions also offer competitive interest rates because they don’t have to share profits with shareholders. If you choose the right account and play your cards right you can even earn bonus interest.
  • Cater to different needs. Features that savings accounts come with can vary from one offering to the next, allowing you to choose an account as per your needs. If you want 24/7 access to money in your account, pick one that provides free access to online and phone banking. If you want to use money in your account to pay bills, you can find an account that provides BPAY access.

Cons

  • Inadequate returns. Savings accounts in Australia tend to offer interest rates in between 2% and 3.5%. These rates are lower than what you stand to make through other means of investments.
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What are the risks?

  • Limited information. A little research can go a long way in the world of investments even if you’re putting your money is a seemingly simple asset like a term deposit. This is because not all financial institutions offer the same interest rate. When dealing with more complicated assets like shares and futures, learning the intricacies becomes all the more important.
  • Fees. When you invest your money, you’ll use the services of a financial institution or a broker, or both. Before you begin any such relationship, take time you find out how much you may have to pay as fees in different situations.
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Is there anything else I should consider?

  • Risk. In most cases, there is a direct link between the risk your investments face and the returns they generate. If you’re looking at greater potential returns, it is only natural that you should prepare to take higher levels of risk. However, risk perception can vary and does not have a necessary bearing on statistical analysis.
  • Risk profiling. Your willingness to take risk coupled with how it can affect your judgement translates into your risk profile. By going through the process of risk profiling you address aspects like risk capacity, risk required and risk tolerance, and this helps you arrive at optimal investment risks.
  • Financial goals. Setting financial goals is crucial but you should be able to measure how you’re doing as and when required. When planning for retirement, calculate just how money you’ll require when time comes.

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