How to invest in stocks in the US: a beginner's guide to stock investments

For many people, the idea of investing in stocks can feel complex or like it's reserved only for professionals. However, learning how to invest in stocks is easier now than ever. With modern digital platforms like ours, you can start small and build your financial future step by step.

In this guide, we simplify the jargon, walk you through the practical steps you need to take, and show you how we can help you access the stock market. We cover everything from setting your first goal to understanding assets and managing risk. We're here to help you understand exactly how to invest in stocks in the US.

Ready to explore your options and start investing with us?

Capital at risk.¹ Fees and T&Cs apply.

The information provided is accurate as of January 30, 2026.

The content of this page is for general information purposes only and does not constitute financial advice. If you have any questions about your personal circumstances, please seek professional and independent advice. Revolut is not a financial advisor.

How to start investing in stocks

Here's the basics on how the process works with us:

• Define your goal. Decide if you’re investing for the long term — such as for retirement — or a shorter target.
• Add money. Move money from your main Revolut account to your investment account in a few taps.
• Pick your stocks or ETFs. Research individual companies or diversified baskets of stocks.
• Place your trade. Enter the amount you want to spend and confirm your purchase.

What's stock investing?

Investing is when you put money into assets, such as stocks or funds, with the expectation that they'll grow in value over time. While saving keeps your money safe and accessible, investing has the potential to increase your money's buying power in the long run. Buying power is how much your money can purchase. If your money doesn't grow, inflation causes its buying power to shrink.

It's important to remember that investing always carries risk. This means that the value of your assets can go down as well as up, and you could lose some or all of your money.

The importance of balance and managing risk

Balance is achieved by understanding that every investment carries a certain level of risk. The potential for growth is always accompanied by the possibility of loss. The value of your investments can go up as well as down, and you may receive less than your original investment or lose the value of your entire initial investment.

Educating yourself and understanding the risks involved is the most important step to take before you start. You shouldn't invest money you can't afford to lose, and you should make sure you have an emergency savings cushion in place first.

Stocks and the stock market explained

The stock market is a public marketplace where companies issue and trade investment products like stocks and funds. Before we look at how to start investing in stocks in the US, let's clarify the main components.

Understanding stocks

A stock represents a fractional piece of ownership in a specific company. When you buy a stock, you become a part-owner, and your success is tied to the company’s performance. For example, if you buy one share of stock in a large tech company, you now own a tiny piece of that business.

You can potentially make money in 2 ways:

• Capital growth: This happens when the stock price increases and you sell at a profit.
• Dividends: These are a portion of the company's profits distributed to stockholders. Not all companies pay dividends, but many established ones do.

Understanding ETFs (exchange-traded funds)

An ETF is a basket of assets, like stocks or bonds, that allows you to invest in many companies at once.

Exchange-traded funds are popular because they trade on stock exchanges just like individual stocks. This offers diversification because instead of buying one company, you're buying a group of various companies.

The power of growth and the risk of inflation

Growth is a common reason people choose to invest in stocks in the US. It offers the potential for higher long-term returns compared to traditional savings accounts. A traditional savings account is designed for safety and liquidity, meaning your money is easily accessible and protected up to a certain limit (like through FDIC insurance in the US). However, the interest rates offered on these accounts may be lower than the rate of inflation.

Here's how savings and stocks differ:

• Savings: This is a lower-risk option with a lower potential return. The rate of growth may be lower than inflation, meaning your money gradually loses buying power.
• Stocks: This is a higher-risk option with a higher potential return. You can lose money, but stocks offer the opportunity for growth that outpaces inflation.

This potential growth is crucial for protecting your money's value against inflation. Inflation is the general rise in the price of goods and services, which decreases the buying power of your money over time. Historically, the S&P 500 has provided an average annual return of approximately 10% before inflation, according to Investopedia.

Investing may provide the opportunity for your wealth to grow faster than inflation, helping you secure your financial future. Of course, past performance doesn't guarantee future success.

Starting stock investments with small amounts

One misconception about stock investments is that you need thousands of dollars to begin. This isn't true anymore. Thanks to modern financial technology, almost anyone can invest. With Revolut, you can start investing in stocks with as little as $1. In some cases, the minimum investment is tied to the price of a single fractional share.

It's crucial to have a financial buffer before you begin. Most financial experts recommend setting aside an emergency fund that covers at least 3–6 months of living expenses in an easily accessible savings account. This means you don't have to sell your investments at a loss if an unexpected expense arises.

With us, you can open a high-yield savings account that can carry up to $10,000 specifically for your emergency fund while also starting to invest in stocks, all in-app. This makes it easy to separate your low-risk, accessible money from your long-term growth money.²

Investing in stocks: the role of fractional shares

Fractional shares allow you to buy a portion of a single share of stock. Before this innovation, if a company’s stock price was high — for example, $1,000 — you needed at least that much to buy even one share.

Fractional shares allow you to:

• access expensive companies. You can buy a slice of high-value stocks without needing the full price.
• diversify. You can spread a small amount of money (e.g. $50) across 5–10 different companies, giving you diversification without a large initial investment.
• invest regularly. Small, consistent investments can be much more practical and effective than waiting to save up a large sum.

We offer fractional shares so you can start investing with as little as $1. This makes it possible for virtually anyone to begin building a portfolio and start investing in stocks in the US.

What to invest in: Assets for beginners to consider

A beginner should buy assets that align with their risk tolerance. This often includes a mix of individual stocks and ETFs. Most beginners start with a mix depending on their comfort level and investment timeline.

Investing in individual stocks: The balance of risk and potential reward

Buying individual company stocks means you're backing a specific business. This can lead to substantial gains if the company performs exceptionally well, but it also carries the highest risk. If the company fails, your entire investment in that stock could be lost.

This approach requires more research and monitoring of company news, financial reports, and industry trends. While you should always do your due diligence, the stock market is unpredictable, and past performance doesn't guarantee future success.

Investing in exchange-traded funds (ETFs): A popular starting point

ETFs are often the go-to choice for beginners because they provide broad exposure. An ETF might track a whole index (like the S&P 500), an entire sector (like global tech), or a single commodity (like gold). Here's what you need to know:

• Potential diversification. Broad-market ETFs can help reduce risk because if one company performs poorly, the impact on your overall investment is softened by the performance of other assets in the basket.
• Low cost. ETFs often have lower ongoing fees than actively managed mutual funds because they aren't typically actively managed.
• Risks. Like all investments, ETFs involve risk. Their value can go down as well as up. Sector-specific ETFs are particularly susceptible to the risks of that single area.

Define your goals and risk tolerance

Here's how to start:

• Set a goal. Decide if you’re saving for retirement (20+ years), or a medium-term goal like a house down payment (5–10 years). Your time frame determines the level of risk you can afford to take. Long-term goals can typically handle more risk because there's time to recover from market downturns.
• Assess your risk tolerance. Consider how you'd react if your portfolio dropped by 20% overnight. If you think you'd be stressed, you have a low risk tolerance. Only invest at a level that allows you to sleep soundly.

Stock investment strategies for beginners in the US

Once your account's open and funded, applying a few strategies can help you navigate the stock market easily.

Why diversification is your best friend

Diversification is an investor's tool for risk management. It's about not putting all your eggs in one basket. If you invest all your money in a single company and that company faces a crisis, your entire portfolio could suffer. It's important to remember that diversification can help mitigate certain risks, but it doesn't eliminate the possibility of loss.

Diversification means spreading your investments across different:

• assets. Stocks and ETFs for example.
• industries. For example, allocating money to technology, healthcare, and utilities.
• regions. Investing in US, European, and Asian markets to avoid being tied to a single economy.

Investing in stocks in the US: The simplicity of dollar cost averaging

Dollar cost averaging (DCA) is a strategy where you invest a fixed amount of money at regular intervals, regardless of the stock price. Instead of making one large investment, you commit to investing a fixed, smaller sum of money regularly, like $100 every month.

The benefits of DCA:

• Removes emotion. You invest consistently regardless of market volatility.
• Lowers average cost. When prices are high, your fixed sum buys fewer shares. When prices are low, the same sum buys more shares. Over time, your average purchase price is often lower than if you tried to time the market.
• Builds discipline. It turns investing into a regular financial habit, which is key to long-term wealth building.

Invest in stocks in the US with Revolut

We've removed the friction and complications, providing a powerful platform that's accessible to new investors in the US. Here's what you get when you start your investment journey with us:

• Fractional ownership. Start building a diversified portfolio with an investment as small as $1.
• Seamless integration. Manage your spending, saving, and investing all in one app. Transfers between your Revolut main account and your investment account are fast.
• Upfront pricing. A clear commission structure so you always know what you're paying.
• Global access. Access hundreds of stocks and ETFs from your phone.

How to invest in stocks with Revolut in the US

If you're a beginner and ready to invest in stocks, getting started with us is fast and simple. You can create an investment account quickly and begin managing your finances today.

Here's our step by step guide to setting up your account:

1. Download the app and sign up. Follow the on-screen instructions to enter your personal details and verify your identity.
2. Tap Invest. Find it in the bottom menu. You'll then see the full range of investment options we offer.
3. Complete the investor profile. You'll be asked a few questions to determine your investment knowledge and risk tolerance. This helps us follow financial regulations.
4. Add money. Move the money you want to invest from your main Revolut account to your investment account.
5. Start trading. Use the search bar to find the stocks or ETFs you're interested in. Tap Buy, enter the amount, and confirm the transaction.

¹About the risks

Investing in stocks carries risks and may not be suitable for all investors. Stock prices can be volatile and are influenced by market conditions, economic factors, and company performance. Past performance is not indicative of future results. There is a risk of losing some or all of your invested capital. Please assess your financial situation carefully and consider seeking independent advice before investing.

Important information about our trading relationship with you — Client Relationship Summary:

Our Client Relationship Summary (Form CRS) offers a brief summary of our services, fees, and obligations when we work with you in a broker-dealer relationship.

Find more information in DriveWealth’s SEC Rule 606 Report Disclosure.

This stock trading platform is facilitated by Revolut Securities. Neither Revolut nor Revolut Securities provides investment advice, and individual investors should make their own decisions or seek professional independent advice if they are unsure as to the suitability/appropriateness of any investment for their individual circumstances or needs. Additional fees may apply. The value of investments can go up as well as down, and you may receive less than your original investment or lose the value of your entire initial investment. Past performance is not a reliable indicator of future results.

Learn more by reading our full Terms & Conditions and our Trading FAQ.

All securities and investments are offered to self-directed customers by Revolut Securities Inc., member FINRA & SIPC. Additional information about your broker can be found on BrokerCheck.

²Revolut is not a bank. Plan fees and cancellation fees apply for Premium and Metal plans. This is a variable-rate account and the APY may change without notice. Terms and Conditions apply. No minimum balance to open, $0.01 minimum to earn APY. Only 1 High Yield Account is permitted and is limited to $10,000 in customer-initiated deposits. The maximum combined balance of all Savings accounts is $250,000 per customer. Savings account services provided by Cross River Bank, Member FDIC, insured up to $250,000.