How to Start Investing with Just $100

Why $100 Is More Than Enough to Start Investing

A lot of people think you need thousands of dollars to start investing. That used to be true — back when brokers charged $10 per trade and required minimum account balances of $500 or more. Those days are gone.

Today, you can open an investment account with zero dollars, fund it with $100, and buy actual fractions of real companies. Not pretend money. Not some app that simulates the market. Real ownership in real businesses.

Heres the thing most financial gurus wont tell you: the amount you start with matters way less than the habit of starting. Someone who begins investing $100 a month at 22 will have significantly more money at 40 than someone who waits until they are 30 to invest $500 a month. Time in the market beats timing the market — and the best time to start was yesterday.

So if you have got $100 sitting in your checking account right now, that is more than enough to build real wealth. Lets walk through exactly how to do it.

4 Investment Platforms That Welcome Small Amounts

Not every broker makes it easy to invest small sums. Some still have account minimums or charge fees that eat into tiny balances. These four platforms are built for beginners and small accounts:

• Fidelity — No account minimums, no commission on stocks and ETFs, and they offer fractional shares on a huge selection of stocks and ETFs. Fidelity is one of the largest brokers in the world, and their customer service is excellent. You can open an account in about 10 minutes with just your Social Security number and a linked bank account. Their mobile app is clean and easy to navigate. If you want a set it and forget it platform, Fidelity is tough to beat.
• Robinhood — The app that basically invented commission-free trading for regular people. No account minimums, fractional shares available, and probably the simplest interface of any investing app. Robinhood gets a lot of criticism (some deserved, some not), but for someone who just wants to buy a few ETF shares with $100, it works great. Just avoid the options and margin features until you actually know what you are doing.
• Webull — Similar to Robinhood but with more advanced charting tools and research features. No commissions, no minimums, and fractional shares are available. Webull tends to attract people who are a bit more into the numbers and analysis side of investing. If you are the type who likes looking at data before making decisions, Webull might be your speed. They also frequently offer sign-up bonuses like free stocks.
• SoFi Invest — Part of the broader SoFi financial ecosystem, SoFi Invest lets you start with as little as $1. They offer fractional shares, no commissions, and an auto-in
  

  

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  vesting feature that can automatically buy investments for you on a schedule. If you already use SoFi for banking or loans, keeping your investments in the same place is convenient. Their stocks and bits feature makes it really simple to buy small pieces of expensive stocks.

Pick one. Do not overthink it. You can always switch later or use multiple platforms. The important thing is getting your money invested.

Exactly What to Buy With $100: Fractional Shares of ETFs

Here is where most beginners freeze up. You open your account, deposit $100, stare at the screen, and have no idea what to click. Let me make this simple.

Do not try to pick individual stocks. Do not buy Bitcoin. Do not chase whatever is trending on Reddit or TikTok. With $100, your best move is buying fractional shares of broad market ETFs.

An ETF (exchange-traded fund) is basically a basket of stocks. When you buy one share of an ETF, you are buying tiny pieces of hundreds or thousands of companies all at once. Its instant diversification, which is exactly what a small investor needs.

Fractional shares mean you do not need enough money to buy a whole share. If an ETF costs $400 per share but you only have $100, you can buy 0.25 shares. You still own it. You still get the returns. The price is the same whether you own 0.01 shares or 100 shares.

Here are three specific ETFs to consider with your $100:

• VTI (Vanguard Total Stock Market ETF) — This tracks the entire US stock market. Over 4,000 companies. When you buy VTI, you own a piece of essentially every publicly traded company in America. Expense ratio is 0.03%, meaning it costs you $0.03 per year for every $100 invested. Almost free.
• VXUS (Vanguard Total International Stock ETF) — This gives you exposure to international stocks — companies in Europe, Asia, emerging markets. Over 8,000 stocks outside the US. Expense ratio is 0.07%.
• BND (Vanguard Total Bond Market ETF) — Bonds are like IOUs from governments and companies. They are less exciting than stocks but they smooth out your portfolio when the stock market drops. BND holds over 10,000 bonds. Expense ratio is 0.03%.

With $100, you could split it something like: $60 into VTI, $25 into VXUS, and $15 into BND. That gives you global diversification across stocks and bonds for the price of a couple pizzas.

The Simple 3-Fund Portfolio

The three ETFs mentioned above — VTI, VXUS, and BND — form what is known as the 3-Fund Portfolio. This is one of the most recommended investment strategies in existence, endorsed by everyone from Bogleheads to financial advisors to people who have been investing for decades.

Here is why it works: