Many people believe that investing requires thousands of dollars, but you can start with as little as $100. Thanks to modern investing platforms, fractional shares, and low-cost funds, getting started has never been easier.
This guide will show you where to invest $100, the best beginner strategies, and how to grow your money over time.
Why Start Investing With $100?
Build Wealth Over Time – Even small investments grow with compound interest.
Develop Good Financial Habits – Starting early helps you learn and improve.
Make Your Money Work for You – Investing beats leaving money in a low-interest savings account.
Even investing $100 per month can turn into thousands of dollars over time.
Best Ways to Invest $100
1. Buy Fractional Shares of Stocks
You no longer need hundreds of dollars to invest in top companies like Apple or Tesla. Many brokerages allow you to buy fractional shares, meaning you can invest with any amount.
Best Apps for Fractional Investing:
- Robinhood (No commissions, easy to use)
- Fidelity (Trusted, offers fractional shares)
- Charles Schwab (Great for long-term investors)
Example: Instead of buying a full Amazon share for $3,500, you can invest $100 and own a fraction of the stock.
2. Invest in Index Funds or ETFs
Index funds and ETFs (exchange-traded funds) allow you to invest in hundreds of stocks at once, reducing risk.
Best ETFs for Beginners:
- Vanguard S&P 500 ETF (VOO) – Tracks the 500 largest U.S. companies
- iShares Core S&P 500 ETF (IVV) – Low-cost, diversified
- SPDR S&P 500 ETF (SPY) – Highly liquid and reliable
Example: Instead of picking individual stocks, investing $100 in an S&P 500 ETF gives you exposure to companies like Apple, Microsoft, and Google.
3. Use a Robo-Advisor
If you want a hands-off approach, robo-advisors automatically invest for you based on your risk tolerance and goals.
Best Robo-Advisors for Beginners:
- Wealthfront – Low fees, fully automated
- Betterment – Great for beginners, goal-based investing
- M1 Finance – Combines automation with stock picking
Example: Deposit $100 into a robo-advisor, and it will automatically diversify your investment across stocks and bonds.
4. Buy Cryptocurrency
If you are open to risk, cryptocurrencies like Bitcoin and Ethereum can be part of your portfolio.
Best Crypto Platforms:
- Coinbase (Beginner-friendly)
- Binance (Low fees)
- Kraken (Strong security)
⚠ Crypto Warning: Prices fluctuate heavily, so invest only what you can afford to lose.
5. Invest in REITs (Real Estate Investment Trusts)
Real estate investing is expensive, but REITs let you invest in properties with small amounts of money.
Best REIT ETFs:
- Vanguard Real Estate ETF (VNQ) – Invests in real estate companies
- Schwab U.S. REIT ETF (SCHH) – Low fees, diversified
- Fundrise – Crowdfunded real estate investing
Example: Instead of buying a house, you can invest $100 in REITs and earn passive income from rental properties.
How to Grow Your Investment Over Time
Keep Adding More – Even $50–$100 per month can lead to long-term growth.
Reinvest Your Profits – Use dividends and gains to buy more shares.
Stay Consistent – Invest regularly and ignore short-term market fluctuations.
Example: Investing $100 per month at 8% annual returns can grow to $150,000 in 30 years.
FAQs
Can I really start investing with just $100?
Yes. Many brokerages allow you to invest as little as $1 in stocks, ETFs, or crypto through fractional shares.
Is investing $100 worth it?
Absolutely. Small investments grow over time with compound interest. Starting early gives you an advantage.
Where is the safest place to invest $100?
Index funds and ETFs offer lower risk because they are diversified across many stocks.
Should I invest in individual stocks or ETFs?
If you are new, ETFs are safer because they spread risk across many companies. Stocks can offer higher returns but are riskier.
How often should I invest after my first $100?
Try to invest regularly, even if it is just $25 or $50 per month. Consistency is key to long-term success.