How to Start Investing in Stocks with $100 or Less

Introduction

Many people believe that investing in the stock market requires thousands of dollars, but that’s not true! With just $100 or less, you can start building your investment portfolio. Thanks to modern technology, stock trading apps, fractional shares, and commission-free platforms make it easier than ever to invest with a small budget.

In this guide, we’ll walk you through how to start investing in stocks with $100 or less, where to invest, and essential strategies to grow your money.

Why Start Investing with $100?

Investing small amounts early can lead to significant financial growth over time due to compound interest. Here’s why starting now is a smart move:

• Builds financial discipline
• Helps you learn about the stock market
• Allows you to take advantage of long-term growth
• No large capital required

Best Ways to Invest $100 or Less in Stocks

1. Buy Fractional Shares

Many brokerages now allow investors to purchase fractional shares, meaning you can buy a small part of a stock instead of a whole share. This is great for investing in expensive stocks like Amazon, Apple, and Tesla.

Platforms Offering Fractional Shares:

• Robinhood
• M1 Finance
• Fidelity
• Charles Schwab

2. Invest in Exchange-Traded Funds (ETFs)

ETFs are collections of stocks that track a specific market index, such as the S&P 500. They provide diversification and reduce risk.

Best ETFs to Consider:

• Vanguard S&P 500 ETF (VOO)
• SPDR S&P 500 ETF Trust (SPY)
• iShares Core S&P 500 ETF (IVV)

3. Use Micro-Investing Apps

Micro-investing apps allow you to invest spare change from everyday purchases. These apps automatically round up transactions and invest the difference.

Popular Micro-Investing Apps:

• Acorns
• Stash
• Betterment

4. Dividend Stocks for Passive Income

Investing in dividend-paying stocks allows you to earn passive income while your investments grow.

Top Dividend Stocks for Beginners:

• Coca-Cola (KO)
• Procter & Gamble (PG)
• Johnson & Johnson (JNJ)

5. Robo-Advisors for Automated Investing

If you’re new to investing, robo-advisors can automatically manage your portfolio based on your goals.

Best Robo-Advisors:

• Wealthfront
• Betterment
• SoFi Invest

Step-by-Step Guide to Investing with $100

Step 1: Choose a Brokerage Account

Select an online brokerage that offers low fees, fractional shares, and no account minimums.

Step 2: Decide on Your Investment Strategy

• Growth stocks – Companies with high growth potential
• Dividend stocks – Companies that pay regular dividends
• ETFs & Index Funds – Diversified investment options

Step 3: Make Your First Investment

Deposit your $100 into the brokerage account and purchase stocks, ETFs, or fractional shares.

Step 4: Monitor and Reinvest

Check your investments regularly and reinvest earnings to grow your portfolio over time.

Common Mistakes to Avoid

• Not diversifying investments – Don’t put all your money in one stock.
• Trying to time the market – Invest consistently instead.
• Ignoring fees – Choose commission-free platforms.
• Emotional investing – Avoid panic selling during market dips.

Final Thoughts

Starting with $100 or less is possible and an excellent way to begin your investment journey. By using fractional shares, ETFs, micro-investing apps, and dividend stocks, you can grow your money over time. The key is to start now and stay consistent.

Are you ready to take your first step toward financial freedom? Open a brokerage account today and begin investing with as little as $5, $50, or $100!