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 Online investing can be intimidating and complicated for those who are new to the process. The main reason is that online investing platforms are numbering in the thousands and many are different types. Some of the platforms include do-it-yourself, while others provide investment management that's complete. It's possible to begin investing with as little as $500, and the process doesn't have to be complicated.

Investment education is a significant part of online investing. The main reason is that, when you use beginner online investor firms like Betterment, you're going to experience limitations. Therefore, it's essential to understand these caps, why they're there, and what they mean. What are mutual funds, EFT's, drip funds investing, and index funds? If you don't know the answers to these questions, find a free online investing course and obtain some investing education. Attending seminars on investing will also help you understand online investing, as well.

Develop an emergency fund that will not incur any risk at all. These funds should equal at least three months of living expenses. Put these funds into nothing risky including a money market fund or certificate of deposit. You'll be putting these funds away in case of an emergency or if your investments don't work out as you plan.

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