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How to Invest $100
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How to Invest $100
Start small and steadily grow your wealth using products and services like fractional shares, index funds, ETFs, retirement plans, brokerage accounts and robo-advisors.
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Expertise Investing basicsAlieza Durana is a former investing writer at NerdWallet. She has over a decade of journalism experience covering housing, labor, gender and public policy issues for the Eviction Lab, The Fuller Project for International Reporting, New America and Slate. Her work has appeared in USA Today, The Washington Post, The Atlantic and Harvard Business Review. She is based in St. George, Utah.
Alieza Durana is a former investing writer at NerdWallet. She has over a decade of journalism experience covering housing, labor, gender and public policy issues for the Eviction Lab, The Fuller Project for International Reporting, New America and Slate. Her work has appeared in USA Today, The Washington Post, The Atlantic and Harvard Business Review. She is based in St. George, Utah. Lead Writer + more + more
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12 years of experience Expertise Brokerage accounts stock market cryptocurrencyChris Davis is a Managing Editor on the Investing team. He has passed the Series 65 (Uniform Investment Adviser Law Exam) and covered the stock market, investing strategies, investment accounts and cryptocurrency. His work has appeared in The Associated Press, The Washington Post, MSN, Yahoo Finance, MarketWatch, Newsday and TheStreet.
Chris Davis is a Managing Editor on the Investing team. He has passed the Series 65 (Uniform Investment Adviser Law Exam) and covered the stock market, investing strategies, investment accounts and cryptocurrency. His work has appeared in The Associated Press, The Washington Post, MSN, Yahoo Finance, MarketWatch, Newsday and TheStreet. Published in Managing Editor + more + moreThanks to investment products like fractional shares and exchange-traded funds (ETFs), people can enter the market for dollars and cents — and quickly build a diverse portfolio with little money. Not to mention the apps that can help you save or invest spare change.
Thanks to investment products like fractional shares and exchange-traded funds (ETFs), people can enter the market for dollars and cents — and quickly build a diverse portfolio with little money. Not to mention the apps that can help you save or invest spare change .Whether your student loans are being forgiven, you received a gift or you earned some extra cash this month, using $100 or less to start your investment journey is possible now more than ever.
Whether your student loans are being forgiven, you received a gift or you earned some extra cash this month, using $100 or less to start your investment journey is possible now more than ever.So, if that extra Benjamin falls into your lap, here’s what you need to know about starting to invest, the financial products that can help you diversify your portfolio for less, and how to make your money work the hardest for you.
So, if that extra Benjamin falls into your lap, here’s what you need to know about starting to invest, the financial products that can help you diversify your portfolio for less, and how to make your money work the hardest for you.Brokerage firms
Brokerage firms
Brokerage firmson Charles Schwab's website
on E*TRADE's website
on Vanguard's website
on Fidelity's website
4 easy ways to start investing with little money
4 easy ways to start investing with little moneySome beginners might need clarification or help on what to invest in and how.
Some beginners might need clarification or help on what to invest in and how.“The hardest part for beginners is to actually start to put the money in the account and click buy,” says Orlando, Florida-based certified financial planner Maggie Gomez. Gomez’s experience of financial insecurity and homelessness early in life informed how she approaches making financial education and services accessible to a more diverse range of people.
“The hardest part for beginners is to actually start to put the money in the account and click buy,” says Orlando, Florida-based certified financial planner Maggie Gomez. Gomez’s experience of financial insecurity and homelessness early in life informed how she approaches making financial education and services accessible to a more diverse range of people.If you share that uncertainty about how to begin, here are four ways to start investing.
If you share that uncertainty about how to begin, here are four ways to start investing.1. Retirement plans for retirement goals
1. Retirement plans for retirement goalsIf your investing goal is retirement, you might already be invested if you’re taking part in an employer-sponsored 401(k) plan.
If your investing goal is retirement, you might already be invested if you’re taking part in an employer-sponsored 401(k) plan.If you’re not and want to start saving for retirement, you can set up a tax-advantaged plan on your own with an individual retirement account (IRA). Since some providers require account minimums for IRAs, be sure to look for a provider with a low or $0 minimum.
If you’re not and want to start saving for retirement, you can set up a tax-advantaged plan on your own with an individual retirement account (IRA). Since some providers require account minimums for IRAs, be sure to look for a provider with a low or $0 minimum.Roth IRAs are tax-advantaged accounts for long-term investors who want to contribute after-tax dollars and withdraw their investment tax-free in retirement. Traditional IRAs, on the other hand, allow you to invest pretax dollars. With this type of account, you pay income taxes upon withdrawing the money in retirement.
Roth IRAs are tax-advantaged accounts for long-term investors who want to contribute after-tax dollars and withdraw their investment tax-free in retirement. Traditional IRAs, on the other hand, allow you to invest pretax dollars. With this type of account, you pay income taxes upon withdrawing the money in retirement.» Learn more: Types of IRAs and finding the one for you
» Learn more: » Learn more: Types of IRAs and finding the one for you2. Low-cost brokerage accounts for (nonretirement) financial goals
2. Low-cost brokerage accounts for (nonretirement) financial goalsIf you have a different investment goal, a brokerage account may be right for you. Brokerage accounts allow you to invest in things like stocks, ETFs and index funds. They’re easy to open and differ from retirement accounts in that you can sell at any time and withdraw your funds without penalty. However, note that you'll still likely have to pay capital gains taxes if you make money on your investments.
If you have a different investment goal, a brokerage account may be right for you. Brokerage accounts allow you to invest in things like stocks, ETFs and index funds. They’re easy to open and differ from retirement accounts in that you can sell at any time and withdraw your funds without penalty. However, note that you'll still likely have to pay capital gains taxes if you make money on your investments.If you’re opening a new account, be sure to look for a brokerage that offers commission-free trades, no account minimum and no fee to open the account.
If you’re opening a new account, be sure to look for a brokerage that offers commission-free trades, no account minimum and no fee to open the account.You can look for a brokerage that offers fractional shares, which let you buy portions of a single share of a company’s stock, rather than a whole share. So if you only have $20 to contribute to a stock that’s priced at $50, fractional shares can get you there. Many fractional share brokers offer minimum purchases of $5 or less.
You can look for a brokerage that offers fractional shares , which let you buy portions of a single share of a company’s stock, rather than a whole share. So if you only have $20 to contribute to a stock that’s priced at $50, fractional shares can get you there. Many fractional share brokers offer minimum purchases of $5 or less.» Learn more: What a brokerage account is and how to open one
» Learn more: » Learn more: What a brokerage account is and how to open one3. Index funds and ETFs
3. Index funds and ETFsBuying and selling individual stocks generally carries a high level of risk. You could instead invest in ETFs and index funds, which are baskets of investments that include dozens, hundreds or even thousands of stocks. These products can track various assets, like stocks, bonds, currencies, commodities or even an entire market.
Buying and selling individual stocks generally carries a high level of risk. You could instead invest in ETFs and index funds, which are baskets of investments that include dozens, hundreds or even thousands of stocks. These products can track various assets, like stocks, bonds, currencies, commodities or even an entire market.When you buy a share of an index fund or ETF, you instantly gain access to shares of a wide range of companies. These funds offer easy and quick portfolio diversification, making them an excellent choice for beginners. However, while index funds and ETFs are similar in many ways, they also have their differences.
When you buy a share of an index fund or ETF, you instantly gain access to shares of a wide range of companies. These funds offer easy and quick portfolio diversification, making them an excellent choice for beginners. However, while index funds and ETFs are similar in many ways, they also have their differences .Once you’ve selected an account, consider whether you want to invest all at once or over time. The $100 you have could be your first contribution, or you could break it up into smaller contributions such as $20 a month.
Once you’ve selected an account, consider whether you want to invest all at once or over time. The $100 you have could be your first contribution, or you could break it up into smaller contributions such as $20 a month.Spreading out your purchases over time like this is a financial strategy called dollar-cost averaging. Micro-investing apps also dollar-cost average by rounding up purchases to a debit card and investing tiny amounts into ETFs.
Spreading out your purchases over time like this is a financial strategy called dollar-cost averaging . Micro-investing apps also dollar-cost average by rounding up purchases to a debit card and investing tiny amounts into ETFs.4. Help from robo-advisors
4. Help from robo-advisorsA robo-advisor is an automated investing service that makes portfolio recommendations after assessing your risk tolerance, investment preferences and time horizon through a questionnaire. The recommended portfolios are often composed of ETFs and range from more conservative to aggressive investment options. Once you choose a portfolio, the robo-advisor does the investing for you.
A robo-advisor is an automated investing service that makes portfolio recommendations after assessing your risk tolerance, investment preferences and time horizon through a questionnaire. The recommended portfolios are often composed of ETFs and range from more conservative to aggressive investment options. Once you choose a portfolio, the robo-advisor does the investing for you.While some robo-advisors charge portfolio management fees around 0.25%, others charge no management fee at all. You'll want to look for robo-advisors with low or zero account minimums.
While some robo-advisors charge portfolio management fees around 0.25%, others charge no management fee at all. You'll want to look for robo-advisors with low or zero account minimums.As you begin your investing journey, says Jen Hemphill, an accredited financial counselor in Wichita, Kansas, there's a lot to consider. But the important part, is to just “start where you’re at,” says Hemphill.
As you begin your investing journey, says Jen Hemphill, an accredited financial counselor in Wichita, Kansas, there's a lot to consider. But the important part, is to just “start where you’re at,” says Hemphill.» View a full list of the best financial advisors
» View » View a full list of the best financial advisorsWhat to consider before you begin investing
What to consider before you begin investingBefore you begin investing, be sure you’ve taken care of more immediate financial needs, like paying off high-interest debt and building up an emergency or rainy day fund, says Hemphill.
Before you begin investing, be sure you’ve taken care of more immediate financial needs, like paying off high-interest debt and building up an emergency or rainy day fund, says Hemphill.If you’ve got that covered, it can feel nerve-wracking to consider beginning to put cash in an investment account instead of your savings account. One strategy for overcoming fears about investing is to focus on your goals, according to Hemphill, who also works with clients and provides free bilingual financial education on her podcast "Her Dinero Matters."
If you’ve got that covered, it can feel nerve-wracking to consider beginning to put cash in an investment account instead of your savings account. One strategy for overcoming fears about investing is to focus on your goals, according to Hemphill, who also works with clients and provides free bilingual financial education on her podcast "Her Dinero Matters."Hemphill suggests you first consider why you are investing. Whether your reason is college, a home, retirement, a medical procedure, a trip or something else, why you want to invest affects what type of financial product is the best match for your timeline and goals.
Hemphill suggests you first consider why you are investing. Whether your reason is college, a home, retirement, a medical procedure, a trip or something else, why you want to invest affects what type of financial product is the best match for your timeline and goals.Why you want to invest also informs how much risk you're willing to take. Investments always involve risk, says Hemphill. It's normal for markets to go up and down, and you need to understand that before you start investing. If you need the money for something in the next five years, for example, a high-yield savings account might be a better option because even though your money has less growth potential, there's less risk involved.
Why you want to invest also informs how much risk you're willing to take. Investments always involve risk, says Hemphill. It's normal for markets to go up and down, and you need to understand that before you start investing. If you need the money for something in the next five years, for example, a high-yield savings account might be a better option because even though your money has less growth potential, there's less risk involved.But if you have a very long investment timeline, you could take on more risk, with the thought that it will pay off eventually.
But if you have a very long investment timeline, you could take on more risk, with the thought that it will pay off eventually."When the market is down,” Hemphill says, “you have to be able to just press on.”
"When the market is down,” Hemphill says, “you have to be able to just press on.”Next steps
Next steps Compare online brokerages Best financial advisorsBest online brokerage accounts for stock trading
Best online brokerage accounts for stock trading Best robo-advisors Tools to pay off debt About the author Alieza Durana Alieza Durana Alieza Durana is a former NerdWallet investing writer. Previously, she was a writer for USA Today, The Washington Post and The Atlantic, and also appeared in The New York Times, NPR, CNN and other national media. See full bio.Helpful resources
Helpful resources How to Start Investing in Stocks Individual Retirement Account (IRA): What It Is & How It Works The Best Index Funds and How to Start Investing More like this Investment Basics Investing Best Robo-Advisors: Top Picks for 2026 We spent hours testing robo-advisors to find ones that charge low fees but still offer high-quality features, including automated portfolio rebalancing, exposure to a range of asset classes and financial planning tools. 2 By Alana Benson, Sabrina Parys Investing in Dividend Stocks: Guide, Calculator and Top 7 Yields for June 2026 Dividend stocks can be a great choice for investors looking for passive income and portfolio stability. Here's what to look for when evaluating dividend stocks and how to invest in them. 2 By Chris Davis, Sam Taube Best Brokers for Beginner Investors: Top Picks for 2026 We spent hours analyzing the best brokers for beginners to find ones that offer low costs, helpful educational content and a broad investment selection. Our testers also looked for trading platforms that are easy to navigate. 2 By Alana Benson, Bella Avila Best Investments: Where to Invest in 2026 Wondering where to invest your money this year? High-yield savings accounts, CDs, bonds, funds and stocks are all considered among the best investments available. Learn more about the risks, potential returns and how to get started. 2 By Chris Davis, Alieza Durana Best Brokerage Accounts for Online Investing and Stock Trading in 2026 Based on hours of analysis and hands-on testing, here are our picks for the best brokerage accounts based on their low fees, strong platforms, quality customer support and other factors. Chris Davis Best Robo-Advisors: Top Picks for 2026 We spent hours testing robo-advisors to find ones that charge low fees but still offer high-quality features, including automated portfolio rebalancing, exposure to a range of asset classes and financial planning tools. 2 By Alana Benson, Sabrina Parys Investing in Dividend Stocks: Guide, Calculator and Top 7 Yields for June 2026 Dividend stocks can be a great choice for investors looking for passive income and portfolio stability. Here's what to look for when evaluating dividend stocks and how to invest in them. 2 By Chris Davis, Sam Taube Best Brokers for Beginner Investors: Top Picks for 2026 We spent hours analyzing the best brokers for beginners to find ones that offer low costs, helpful educational content and a broad investment selection. Our testers also looked for trading platforms that are easy to navigate. 2 By Alana Benson, Bella Avila Best Investments: Where to Invest in 2026 Wondering where to invest your money this year? High-yield savings accounts, CDs, bonds, funds and stocks are all considered among the best investments available. Learn more about the risks, potential returns and how to get started. 2 By Chris Davis, Alieza Durana Best Brokerage Accounts for Online Investing and Stock Trading in 2026 Based on hours of analysis and hands-on testing, here are our picks for the best brokerage accounts based on their low fees, strong platforms, quality customer support and other factors. Chris Davis Best Robo-Advisors: Top Picks for 2026 We spent hours testing robo-advisors to find ones that charge low fees but still offer high-quality features, including automated portfolio rebalancing, exposure to a range of asset classes and financial planning tools. 2 By Alana Benson, Sabrina Parys Investing in Dividend Stocks: Guide, Calculator and Top 7 Yields for June 2026 Dividend stocks can be a great choice for investors looking for passive income and portfolio stability. Here's what to look for when evaluating dividend stocks and how to invest in them. 2 By Chris Davis, Sam Taube Best Brokers for Beginner Investors: Top Picks for 2026 We spent hours analyzing the best brokers for beginners to find ones that offer low costs, helpful educational content and a broad investment selection. Our testers also looked for trading platforms that are easy to navigate. 2 By Alana Benson, Bella Avila Best Investments: Where to Invest in 2026 Wondering where to invest your money this year? High-yield savings accounts, CDs, bonds, funds and stocks are all considered among the best investments available. Learn more about the risks, potential returns and how to get started. 2 By Chris Davis, Alieza Durana