How to Start an Investment Club Online (2024)

Investing in the stock market is easier when sharing investing ideas and pooling assets as part of a stock investment club. This article will show you how to get started!

How to Start an Investment Club Online (1)

Investing in the stock market is easier when sharing investing ideas and pooling assets as part of an investment club.

Starting your own club these days is easier and quicker than ever! There are only a few steps that require a paper submission, everything else can be done online. The following steps and accompanying resources will help you get started.

Step 1: Find Potential Members and Hold Your First Club Meeting

Search for like-minded people who have the same interest and desire about investing in stocks. Take the extra time up front to find the right mix of people who you believe can come together, organize as a club and manage a profitable portfolio of stocks. All club members should be aligned on a single stock-investing methodology.

To help ensure success, adopt the BetterInvesting stock investing methodology that has been in use for 70 years and that has helped more than 5million people become successful stock investors. BetterInvesting’s methodology is simple to learn, easy to use and geared toward every experience level.

Email the sample meeting invitation to your prospective club members (see Resources listed below) to get things moving. The first few club meetings will be organizational in nature. During these meetings, the roster of investment club members is established, club officers are elected, and the club startup activities needed for the future should be addressed.

Schedule these initial meetings every two weeks to keep the process moving. Aim for a total of four organizational meetings to get your club up and running.Monthly meetings should be scheduled moving forward.

Online meetings are a convenient way to hold meetings. Some providers of free online meeting applications include Google Meet, Zoom and Skype.

Important! Keep moving forward by using the Investment Club Start-up Check List.


  • Investment Club Start-up Check List
  • Sample Meeting Invitation
  • Duties of the Officers
  • Learn About Investment Clubs

Request an Investment Club Mentor

Step 2: Form a Legal Business Entity and Get Organized

Now you need to organize your club as a legal business entity. To determine which type of legal “business entity” is best for you, carefully review the Types of Business Entities document (see Resources listed below). Most clubs prefer general partnerships because of the extremely low liability issues associated with a club. Additional benefits include allowing the club’s tax liability to pass through to the partners’ personal tax returns andthe advantage of this as the least expensive legal structure.

There is no paperwork to file with a general partnership itself. Since your club will most likely name itself something other than the personal names of the owners, you will need to file a “DBA” (doing business as) certificate with the county where the business is located. Certificate filing requirements vary from state to state so your club secretary or treasurer will need to contact your Secretary of State’s office or licensing board, as well as the office of your local county clerk for details. Online filing is not always available.

BetterInvesting clubs typically adopt the general partnership agreement and operating procedures developed by the Mutual Investment Club of Detroit — one of the organization’s founding clubs. We suggest using these documents to get your club started and operating at a high level. Changes can be made without difficulty in the future if the need arises.

You’ll also need an Employer Identification Number (EIN) number for your partnership tax filing, bank account and brokerage firm. Filing is quick and easy. Go towww.irs.govand apply for your EIN online using IRS form SS-4.


  • Types of Business Entities Legal
  • I.R.S. Form SS-4
  • Sample Partnership Agreement
  • Sample Operating Procedures
  • Learn About Investment Clubs

Step 3: Open a Brokerage Account and Bank Account

In this step you need to determine where you will manage your stock holdings, execute your trades, and whether or not a checking account is needed. Your club should strive to keep costs associated with your stock investing activity to a minimum in order to maximize your returns. The brokerage company you choose will play a significant role.

Depending on your preference, you may want to open a checking account in the club’s name to conduct some of the club’s financial transactions. Research the various types of banks and choose what’s in the best interest of the club. Many banks allow for direct deposit (electronic fund transfers), making it convenient and paperless for members.

Step4:Join BetterInvesting and Acquire Your Stock Investing Strategy

BetterInvesting investment club registration and club member enrollment is the next step to forming your club. With BetterInvesting membership your club can tap into all of our resources used for starting and operating a club, draw on support from our staff and volunteer community, and use our quality tools and resources for studying investing ideas and making investment decisions.

Building investment knowledge and experience is the ultimate key to long-term stock investing success for you and your club. By learning the BetterInvesting stock selection methodology and how to apply it using the BetterInvesting online stock selection tools, your club will be on the path to creating and managing a profitable stock portfolio.


  • Learn About Investment Clubs
  • Register a BetterInvesting Club

Step 5: Establish Club Accounting Procedures

Investment club accounting is a critical component ofoperating a successful stock investment club. The club accounting system BetterInvesting developed has been time-tested and trusted by thousands of clubs operating as partnerships. The club treasurer is ultimately responsible for club recordkeeping. However, it is highly recommended that every club member become somewhat familiar with the process, which is easy to do using the online club accounting and portfolio management platform. is the accounting and club management platform of choice for the majority of U.S. investment clubs. offers a robust and all-inclusivepartnership accounting engine, along with a growing suite of tools for portfolio management and club operations.


It's better toinvest together!

Investment clubs are a safe and supportive way to learn BetterInvesting’s logical and time-tested stock-investing methodology and principleswith your friends and family. BetterInvesting is a non-profit organization providing 70 years of experience and the resources you need to help you and your club invest profitably together.

Learn More About BetterInvesting

Try BetterInvesting Free For 90 Days

Dennis Genord, Director, Education and Chapter Relations, BetterInvesting
Dennis Genord has been a BetterInvesting member for 25 years as a partner in three different investment clubs. He also leads organizational efforts to develop and deliver in-person and online investment education to BetterInvesting members and investment clubs. He helped develop the Building Wealth Curriculum that focuses on financial literacy and fundamental investment education, and he continues supporting teachers using the curriculum in high schools across the nation.

I'm Dennis Genord, Director of Education and Chapter Relations at BetterInvesting, and I bring over 25 years of experience as a BetterInvesting member and a partner in three different investment clubs. My expertise extends to leading organizational efforts in developing and delivering in-person and online investment education to BetterInvesting members and investment clubs. I've actively contributed to the development of the Building Wealth Curriculum, focusing on financial literacy and fundamental investment education.

Now, let's delve into the concepts mentioned in the article about starting an investment club:

  1. Finding Potential Members and Holding Club Meetings:

    • Emphasizes the importance of like-minded individuals interested in stock investing.
    • Recommends adopting the BetterInvesting stock investing methodology, proven over 70 years.
    • Suggests using online meeting applications like Google Meet, Zoom, and Skype.
  2. Forming a Legal Business Entity:

    • Advises organizing the club as a legal business entity, with a preference for general partnerships.
    • Recommends filing a "DBA" certificate with the county and obtaining an Employer Identification Number (EIN).
    • Proposes using the Mutual Investment Club of Detroit's partnership agreement and operating procedures.
  3. Opening a Brokerage Account and Bank Account:

    • Highlights the importance of minimizing costs associated with stock investing.
    • Recommends researching and choosing a brokerage company strategically.
    • Considers opening a checking account in the club's name for financial transactions.
  4. Joining BetterInvesting and Acquiring a Stock Investing Strategy:

    • Encourages joining BetterInvesting for access to resources, support, and tools for starting and operating a club.
    • Emphasizes learning the BetterInvesting stock selection methodology.
  5. Establishing Club Accounting Procedures:

    • Recognizes the critical role of club accounting in operating a successful investment club.
    • Recommends using the online club accounting and portfolio management platform.
    • Stresses the responsibility of the club treasurer and encourages every member to be familiar with the accounting process.

This comprehensive guide provides step-by-step instructions, valuable resources, and insights to help individuals and groups establish and operate a successful investment club. If you're interested in pursuing this, consider exploring the provided resources for a more in-depth understanding.

How to Start an Investment Club Online (2024)


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