How to Start Investing with $100 (or Less)

You don't need thousands to start. Many index funds and brokers now allow small minimums or fractional shares. $100 can buy a slice of the market and get you in the habit of investing. Here's how.

Options for Small Amounts

Fractional Shares

Fractional shares let you buy part of a stock or fund. Instead of needing $450 for one share of an S&P 500 ETF, you can buy $50 worth—about 0.11 shares. You own a proportional slice. Dividends and gains work the same way.

Where to get them: Fidelity, Schwab, Robinhood, SoFi, and others offer fractional investing. Check your broker's list—many ETFs and stocks are available. Vanguard offers fractional investing for their ETFs at Vanguard; Fidelity and Schwab offer it for most U.S. stocks and ETFs.

Example: You have $100. You buy $100 of VOO (Vanguard S&P 500 ETF). At $450 per share, you own about 0.22 shares. If VOO goes up 10%, your $100 becomes about $110. Same percentage return as someone who bought 100 full shares.

Robo-Advisors

Robo-advisors like Betterment, Wealthfront, SoFi Invest, and Acorns often have $0 or low minimums. You answer a few questions, they build a portfolio of ETFs for you, and you can start with $100 or less. Some charge a management fee (0.25–0.50%); others are free for small balances.

Best for: Beginners who want hands-off investing. You don't pick funds—the robo does. Good for $100 or $50 to start.

Traditional Brokerages with Low Minimums

• Fidelity: No minimum for brokerage. Many index funds have $0 minimum. Fractional shares available.
• Schwab: No minimum. Schwab index funds have $0 or $1 minimum. Fractional shares available.
• Vanguard: Some mutual funds have $1,000 or $3,000 minimums. ETFs have no minimum (buy one share or fractional at Vanguard). Consider starting with an ETF.

Example: At Fidelity, you can open an account with $0, add $100, and buy FZROX (Fidelity ZERO Total Market) or a fractional share of VTI. No commission.

Micro-Investing Apps

Apps like Acorns round up purchases and invest the spare change. You can also set up recurring investments of $5, $10, or $25. Good for building the habit with tiny amounts. Some charge a monthly fee ($1–5)—check if it's worth it for your balance.

Prioritize Fees When Investing Small

Why Fees Matter More with Small Amounts

With $100, a 1% fee is $1. With $10,000, it's $100. Percentage fees compound over time. A 0.50% robo-advisor fee on $100 is 50 cents—negligible. On $50,000, it's $250 per year. As you grow, fees add up. Start with low-fee options so you don't have to switch later.

What to Avoid

• Per-trade fees. Most major brokers have $0 commissions. Avoid any that charge per trade.
• High expense ratios. Choose funds under 0.20%. Many index funds are 0.03–0.10%. See our best index funds for beginners.
• Loads. Avoid mutual funds with front-end or back-end loads. Index funds typically don't have them.

Acceptable Fees for Beginners

• Robo-advisors: 0.25–0.50% is acceptable for beginners who want simplicity. As your balance grows, consider switching to a low-cost index fund portfolio to save on fees.
• Expense ratios: Under 0.20% is good. Under 0.10% is great.

Add Consistently: The Real Secret

$100 Once vs $100 Monthly

$100 invested once at 7% for 30 years grows to about $760. $100 invested every month for 30 years at 7% grows to about $113,000. Compound interest works—but consistency amplifies it. The habit of investing regularly matters more than the size of each contribution.

Set Up Automatic Investments

Most brokers let you set up automatic purchases. Pick a fund (e.g., VTI, VOO, FZROX), choose an amount ($50, $100, $200), and a frequency (weekly, biweekly, monthly). Money moves from your bank to your investment account and buys shares automatically. You never have to remember.

Example: You set up $100 automatic investment on the 1st of each month. In 10 years, you've contributed $12,000. At 7% growth, that could be around $17,000. In 30 years, with the same $100/month, you could have over $113,000.

Increase Over Time

Start with $100. When you get a raise, bump it to $150. When you pay off a debt, add that payment to investing. Small increases compound. You don't need to start big—you need to start and keep going.

Where to Put Your $100

Retirement Account (IRA)

If you're saving for retirement, an IRA is tax-advantaged. Traditional IRA: deduct contributions now, pay tax on withdrawal. Roth IRA: pay tax now, withdraw tax-free in retirement. For most young investors, Roth is attractive—you lock in today's (likely lower) tax rate.

Limits: 2024 IRA limit is $7,000 ($8,000 if 50+). $100/month = $1,200/year—well under the limit. You can add more as you go.

Taxable Brokerage

If you might need the money before retirement (house down payment, emergency, etc.), use a taxable brokerage. No tax break, but no penalty for early withdrawal. More flexible.

Example: You're 25, building an emergency fund and saving for a house. You put $100/month in a taxable account in VTI. In 5 years, you might have $7,000+. You can use it for a down payment if needed. If not, keep investing.

401(k) If You Have One

If your employer offers a 401(k) with a match, prioritize that first. Contribute enough to get the full match—it's free money. Then use an IRA or taxable account for the rest.

Step-by-Step: Start Today

1. Choose a broker. Fidelity, Schwab, Vanguard, or a robo-advisor. No minimum or low minimum.
2. Open an account. IRA for retirement, taxable for flexibility. Takes about 10 minutes online.
3. Fund the account. Transfer $100 from your bank. Usually 1–3 business days.
4. Buy a fund. Pick one: VTI, VOO, FZROX, or a robo portfolio. Buy with your $100 (or fractional).
5. Set up automatic investing. $50 or $100 per month. Payday works well. See when to start investing for the full checklist.

Common Concerns

"I Don't Have $100"

Start with $50. Or $25. Some brokers and apps allow $1 or $5. The amount matters less than starting. Build the habit. Increase when you can.

"The Market Might Crash"

It might. Over decades, it has recovered and grown. Time in the market beats timing the market. If you're investing for 10+ years, short-term drops matter less. See dollar cost averaging—investing regularly smooths out volatility.

"I Have Debt. Should I Invest?"

If you have high-interest debt (credit cards, payday loans), pay that first. The interest you save usually beats investment returns. If you have low-interest debt (e.g., student loans at 4%) and an employer 401(k) match, get the match first—it's an instant return. Then tackle debt. See save money fast on low income for the tradeoff.

"I Don't Know What to Buy"

A total U.S. stock market fund (VTI, FZROX, SWTSX) or S&P 500 fund (VOO, IVV) is enough to start. One fund. Hold it. Add to it. Don't overthink. See how to invest in the S&P 500.

Frequently Asked Questions

Can I really invest with $100?

Yes. Fractional shares and $0-minimum funds make it possible. Fidelity, Schwab, and others have no account minimum. You can buy $100 of an index ETF or fund today.

What's the best investment for $100?

A low-cost total U.S. stock market or S&P 500 index fund. Examples: VTI, VOO, FZROX, SWTSX. One fund, broad diversification, minimal fees.

Should I use a robo-advisor or pick my own funds?

Robo-advisors are easier—they build the portfolio for you. Picking your own (e.g., one index fund) is cheaper long-term and simple enough. If you want zero decisions, use a robo. If you're okay choosing one fund, do it yourself and save the fee.

How often should I add money?

Monthly is standard. Align with payday. Weekly works too. Consistency matters more than frequency.

When will I see growth?

Investments fluctuate. In a good year, you might see 10–20% growth. In a bad year, -10% to -20%. Over 10+ years, the historical average is around 7–10% per year. Don't check daily. Think in decades.

The Bottom Line

$100 is enough to start. Use fractional shares, a low-minimum index fund, or a robo-advisor. Avoid high fees. Set up automatic monthly investments. Add more as you can. Time and consistency beat amount. Start small, stay steady.