A lot of people want to start buying shares but put it off until they can build what they think is a big enough pot of funds to invest.

However, while that may sound logical, there can also be some downsides to such an approach. Let me illustrate by contrasting some pros and cons of starting to buy shares with £1,000 versus £100,000.

Starting small can bring challenges

One of the big disadvantages of starting on a more modest scale is that minimum charges and fees can take a disproportionately large bite out of what someone invests. A fee may look small, such as 0.5%, but there is quite often a minimum amount. With £1,000 to invest, those fees and commissions can therefore soon start to bite.

Another challenge is diversification. Spreading your risk by diversifying your portfolio across different shares is a simple but important risk management principle. But it can be harder to do with smaller than larger sums of money.

Still, with £1,000, someone could diversify across several different shares.

Starting big has advantages, but it’s not all plain sailing

So might it make sense for someone to wait until they have a lot more money to start investing, say £100,000? Not necessarily. It could help solve the two challenges I mentioned above – but it can also bring new ones.

First, saving the money could take years or even decades. That is lost time in terms of investing in the stock market. Starting sooner, even on a modest scale, avoids this opportunity cost.

Also, most people like to imagine that they would have investment prowess. But, like most things in life, there are beginner’s mistakes that can be made. Making them with less money at risk can mean they are less costly.

Looking at the question a different way

So I think that for someone who wants to start buying shares, instead of asking how much money they would need to do so, a useful alternative question could be to ask themselves what they could do with the funds they already have.

Whether large or small, it makes sense to keep a keen eye on stockbroking fees, commissions and other charges. So it can pay for someone to shop around when choosing a share-dealing account, Stocks and Shares ISA or trading app.

It is also helpful to get to grips with some key points about how the stock market works and then think about how exactly one wants to invest.

Here’s a share to consider

One share I think could be worth considering, both for new investors and more experienced ones, is discount retailer B&M European Value Retail (LSE: BME).

The company has had a choppy couple of years, with customers shopping around for consumer goods and B&M’s selection and pricing not always managing to grab their attention. That remains a risk for the business and the B&M share price has fallen 53% over the past five years.

Lately, though I feel it has started to show a possible turnaround. The share price has grown 70% so far this year.

Management is actively trying to fix the business. Meanwhile, the business model is proven, it is profitable and it benefits from a large existing customer base.

Should you invest £5,000 in B&M European Value right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if B&M European Value made the list?

Christopher Ruane owns shares in B&M European Value Retail.