Stock Market 101: How to Start Investing with Just $100

If you’ve ever thought that investing in the stock market is only for the wealthy, think again! You can start investing with just $100…

1. Choose a Brokerage Account

The first step is to open a brokerage account. Look for online brokerages with no minimum deposit requirement, like Robinhood, Webull, or E*TRADE. These platforms offer easy-to-use apps, perfect for beginner investors.

2. Buy Fractional Shares

If $100 seems too small to buy popular stocks like Apple or Amazon, don’t worry! Many brokerages now offer fractional shares. This feature allows you to buy a portion of a share, making expensive stocks accessible even on a tight budget.

3. Consider ETFs for Instant Diversification

Exchange-Traded Funds (ETFs) allow you to buy a collection of stocks in one trade. They provide instant diversification, meaning you spread your $100 across different sectors or industries, reducing the risk of putting all your money into a single stock.

4. Use Dollar-Cost Averaging (DCA)

One way to make the most of your $100 investment is by using Dollar-Cost Averaging (DCA). Instead of investing the full amount at once, spread it out over time. This strategy helps you navigate the ups and downs of the market more smoothly.

5. Automate Your Investing

Many apps let you set up automatic, recurring investments. This “set it and forget it” approach helps you stay consistent, which is the key to long-term growth—even if you’re starting small.

6. Reinvest Your Returns

Once you earn dividends or see returns, reinvest them. Reinvesting your earnings accelerates growth through the power of compounding, which means earning returns on your returns over time.

Final Thoughts

Starting small is perfectly fine—what matters is that you start! With just $100, you can begin building an investment habit that grows over time. Remember, the earlier you start, the more time your money has to grow.