Learn how to invest with $100 or less

Tips for investing with $100 or less

Have you ever thought about starting to invest but believed you needed a lot of money to do it? The good news is that today, with just 100 dollars, or even less, you can take your first steps into the world of investing. In the United States, there are several accessible, safe, and practical options for those who are starting out and want to learn with little capital.

If you have a small amount saved and want to make it grow, this guide is for you. We’ll show you how to invest with a small amount, the best platforms and investment options, and what you need to know before getting started.

1. Invest in Fractional Shares

In the past, investing in stocks was expensive. Buying a single share of Amazon or Tesla could cost hundreds or even thousands of dollars. But that changed with the introduction of fractional shares.

Today, brokerages like Robinhood, Fidelity, Charles Schwab, and SoFi allow you to buy just a fraction of a stock. This means that with as little as 1 dollar, you can already own a piece of big companies in your portfolio.

Advantages:

• Access to major companies
• Low initial investment
• Ideal for learning and diversification

2. ETFs: Diversification with Little Money

ETFs (Exchange-Traded Funds) are funds that group several stocks into a single product. For example, when you buy an ETF that tracks the S&P 500 index, you automatically invest in the 500 largest companies in the U.S. And the best part: many ETFs are affordable.

Some popular and accessible ETFs include:

• VOO (Vanguard S&P 500 ETF);
• SPY (SPDR S&P 500 ETF);
• VTI (Vanguard Total Stock Market ETF).

With 100 dollars, you can buy full or fractional shares of these funds and already start with a diversified portfolio.

3. Use Commission-Free Investment Apps

Today, there are several commission-free investment apps that make everything easier. With just a few taps on your phone, you open your account, transfer the funds, and choose where to invest.

Some apps ideal for beginners in the U.S. include:

• Robinhood: no brokerage fees, allows purchase of fractional shares and ETFs;
• Fidelity: secure platform, with a good variety of ETFs and educational tools;
• Acorns: automatically invests your spare change into ETFs, ideal for starting small;
• SoFi Invest: user-friendly interface, great for beginners and offers bonuses for new users.

4. Invest in Cryptocurrencies

With 100 dollars, it’s also possible to invest in cryptocurrencies, such as Bitcoin, Ethereum, and others.

Platforms like Coinbase, Kraken, and Binance US allow fractional purchases, meaning you can buy US$10 worth of Bitcoin, for example.

However, the crypto market is volatile, and it should not be your only form of investment. Use a small portion of your money and understand the risks before investing.

5. Certificates of Deposit and High-Yield Accounts

If you want something more conservative, you can invest your 100 dollars in CDs (Certificates of Deposit) or High-Yield Savings Accounts, savings accounts with above-average interest rates.

Institutions like Ally Bank, Marcus by Goldman Sachs, and Discover offer good rates and allow investments with little initial capital. Although the return is lower, it’s a safe way to start.

6. Learn Before You Invest: Education Is the First Step

Investing is not just about putting in money and waiting for it to grow. It’s important to understand the risks, strategies, and how the market works. So take advantage of the vast amount of free educational content available:

• Investopedia;
• NerdWallet;
• YouTube (channels like Graham Stephan, Andrei Jikh, Minority Mindset)
• Finance podcasts (The Ramsey Show, BiggerPockets Money, etc.)

The more you learn, the better your decisions will be in the future.

Conclusion

Investing with 100 dollars or less is totally possible in the United States. The most important thing is to start.

Don’t wait to have a lot of money to learn about finances, start small, gain experience, and grow gradually. With discipline, patience, and knowledge, your first 100 dollars can turn into much more in the future.

Written by

Juliana Raquel