How to Start Investing in US Stocks With Just $100

One of the biggest myths about investing is that you need a lot of money to start. Thanks to commission-free trading and fractional shares, you can begin building a diversified portfolio with as little as $100.

Step 1: Make Sure You're Ready

Before investing, pay off high-interest credit card debt and start an emergency fund. Our guide on why an emergency fund comes first explains why.

Step 2: Open the Right Account

Choose a reputable brokerage that's a member of SIPC and offers fractional shares. If you have earned income, consider a Roth IRA for tax-free growth — see our Roth IRA vs. 401(k) guide.

Step 3: Choose a Diversified Investment

With $100, a broad, low-cost index ETF is usually smarter than a single stock. One fund can give you exposure to hundreds of companies. Our ETFs for beginners guide shows what to look for.

Step 4: Automate Regular Contributions

The first $100 matters less than the habit. Set up automatic monthly investments — even $25 or $50 — and let dollar-cost averaging do the work.

Step 5: Be Patient

Your balance will rise and fall. Focus on adding money consistently and increasing contributions as your income grows.