How to Invest with Just $100 (or Even Less!)

Think you need a lot of money to invest? No, you can take the first step in building your portfolio with less than $100. See how!

It’s common to think that investing requires a lot of money. However, that’s not true.

In the United States, there are several accessible options for those who want to enter the world of investing with just $100—or even less.

Invest even with little. Photo by Freepik.

If you want to start but think your budget is an obstacle, check out these tips on how to invest with little money and grow your wealth over time.

1. Open a Fee-Free Brokerage Account

Before investing, you need a place to put your money. Fortunately, many brokerage firms in the U.S. offer accounts with no opening fees and no minimum balance requirements.

Here are some examples:

Robinhood—Allows commission-free investing in stocks, ETFs, and cryptocurrencies.
Fidelity—Offers no-fee ETFs and fractional investing.
Charles Schwab—Provides fractional shares and low-cost index funds.

You can also explore other brokerage options, as there are hundreds available, some offering special discounts.

2. Invest in Fractional Shares

Investing in major companies like Apple and Amazon doesn’t require thousands of dollars anymore, thanks to fractional shares.

Instead of buying an entire share, you can purchase just a small portion, making investing much more accessible.

This strategy allows you to diversify your portfolio without needing a large amount of money while also making it easier to learn about the stock market.

3. Start with Index Funds and ETFs

Investing in individual stocks can be risky for beginners. That’s why many experts recommend index funds and ETFs (Exchange-Traded Funds).

ETFs function as a bundle of stocks that track a market index, helping you diversify your investments without having to pick individual stocks.

The best part? Many ETFs allow you to start investing with less than $100, making them an excellent option for beginners.

4. Use Automated Investment Apps

Automated investment apps can help optimize how you allocate your money. Here are some popular options:

Acorns—Rounds up your debit or credit card purchases and invests the spare change.
Betterment—An automated investment platform that builds a portfolio based on your financial goals.
Wealthfront—A robo-advisor that manages your money in a smart and accessible way.

With these apps, you can start investing with very small amounts and let technology work in your favor.

5. Explore Tax-Advantaged Accounts

If you want to invest for the long term, consider opening an individual retirement account, such as a Roth IRA or Traditional IRA.

Roth IRA—You invest post-tax money, but withdrawals in retirement are tax-free.
Traditional IRA—Your contributions lower your taxable income now, but withdrawals in retirement are taxed.

Both options allow you to start with small amounts while enjoying tax benefits over the years.

6. Consider REITs for Real Estate Investing

Investing in real estate might seem impossible with just $100, but REITs (Real Estate Investment Trusts) make it accessible.

REITs are funds that invest in commercial properties like shopping centers, office buildings, and hotels.
By buying shares in a REIT, you can earn regular dividends without having to buy a property directly.

7. Invest in Government Bonds and Fixed Income

The financial system itself offers secure investment options, such as Treasury Bonds (U.S. government bonds) and CDs (Certificates of Deposit), available through banks like Bank of America, Chase, and Wells Fargo.

These lower-risk options are suitable for both small and large investors.

8. Take Advantage of Cashback Programs and Reinvest the Money

Another creative way to start investing with little money is by using cashback programs and reinvesting the savings.

Platforms like Rakuten, Dosh, and Fetch Rewards offer cash back on everyday purchases. Instead of spending this extra money, you can allocate it toward investments.

9. Focus on the Long Term and Financial Education

Investing small amounts doesn’t mean you’ll see instant returns. The key is consistency and patience.
Small monthly investments can grow exponentially over time, thanks to the power of compound interest.

Additionally, continue learning about the financial market to gain confidence and invest wisely.

Is It Worth Starting with Just $100?

Yes! Even with a small amount, you can invest wisely and begin your financial journey. The most important thing is to take the first step, develop the habit of investing regularly, and keep learning.