Investing might seem like something you do only when you have thousands of dollars saved, but even a small amount like $100 can get you started. In fact, experts note that starting small and ”steadily grow[ing] your wealth using products and services like fractional shares, index funds, ETFs… brokerage accounts and robo-advisors” is a smart strategy. In this guide, we’ll show USA adults how to save that first $100, overcome fear, and use beginner-friendly apps to put your money to work. We’ll cover step-by-step savings tips, the right mindset, tools to use, where to invest (stocks, ETFs, etc.), and how to grow even a tiny investment. Plus, we compare top platforms like Robinhood, Acorns, M1 Finance, and Fidelity (and others), and give you a simple comparison table. Follow these steps and you’ll be ready to invest just $100 in 2025.
Step 1: Save $100 – Simple Budgeting and Cutting Costs
Before investing, you need to find or set aside that $100. Start by rethinking your monthly budget. Track every dollar: coffee, groceries, streaming subscriptions, etc. A respected beginner’s guide recommends keeping two savings accounts – one for emergencies and one for investing. Automate small transfers out of each paycheck to each account (“pay yourself first”). For example, save $25 a week in your emergency fund and $25 in your investment account. Even *“$10 a week… pretty soon, that account isn’t going to be anything to sniff at.”*.
Cut unnecessary expenses. Can you skip one restaurant meal or cancel an unused subscription? Use the difference to save.
Use budgeting apps. Free apps like Mint or EveryDollar help categorize spending, showing where to trim so you can save $5–$10 here and there toward your first $100.
Save windfalls and cashback. Put tax refunds, gifts, or cash-back rewards straight into savings or an investment account.
Over time, these small sacrifices add up. For instance, JWU Online’s finance guide notes that by sticking to a budget and living modestly (choosing cheaper rent, used furniture, etc.), you can free up extra cash to “slowly sav[e] for emergencies” and investing. Importantly, pay off high-interest debt first – the 20%+ interest on credit cards typically outweighs any stock market gains. Once debts are cleared and an emergency fund is in place, then use your spare $100 to invest.
Step 2: Develop the Right Mindset – Think Long-Term and Consistent
Investing is a marathon, not a sprint. With just $100, your goal is to start the habit of investing and benefiting from compound growth over time. Financial experts stress that even a small investment can grow substantially if left to compound. For example, NerdWallet points out that ETFs and index funds let you “instantly gain access to shares of a wide range of companies,” offering quick diversification. Over years, that small $100 can snowball.
Key mindset tips:
Accept market ups and downs. Investing involves risk and volatility. Markets go up and down daily, but historically they trend upward over years. You must be comfortable “press[ing] on” even when the market dips.
Set clear goals. Are you investing for retirement, a home, or a future trip? NerdWallet recommends deciding why you’re investing, as this defines your timeline and risk tolerance. A 20-year goal allows more risk than a 2-year goal.
Start now. It’s never too early (or too late) to begin. A college guide notes “it’s better to start as early as possible, [but] better to start now than never”. Even if it’s only $100, starting teaches you the process.
Stay consistent. Think of that $100 as “your first contribution.” Over time, add more (e.g. $20/month). Spreading purchases out (dollar-cost averaging) can reduce risk. Robo-advisors and micro-investing apps automate this by rounding up purchases and investing spare change.
With the right mindset—long-term focus, patience, and discipline—your small investment habit can pay off big in the future.
Step 3: Choose the Right Tools and Accounts
What Accounts to Use
First, open an investment account. You have a few options:
Taxable brokerage account. This is most straightforward: buy and sell stocks, ETFs, and funds as you like. No contribution limits, but gains are taxed. Many brokerages (like Fidelity, Robinhood) allow fractional shares so you can invest even $1 into big companies.
Retirement accounts (IRA). If your goal is retirement, consider a Roth IRA. The contribution limit in 2025 is $7,000 (age 50+). You can fund it gradually ($100 is fine) and invest in stocks/ETFs. Contributions grow tax-free (no early withdrawal penalty after 5 years). However, make sure you qualify by income limits.
High-yield savings or bonds. If you need your $100 back in a few years, a high-yield savings account or Treasury bonds are safer (guaranteed small return, no risk). Voya Financial notes bonds and CDs are ways to “invest with little money” with less risk. But their returns are usually lower than the stock market.
For a beginner putting in $100, a regular brokerage or IRA is fine. Fidelity and Charles Schwab both allow $0 minimum accounts with no fees and let you buy fractional shares (even with just $1). You could also use robo-advisors (Betterment, Wealthfront) that automatically invest for you.
Types of Investments
With $100, focus on diversification and low-cost options:
ETFs and Index Funds. These are baskets of stocks/bonds. Even with small money, you get instant diversification. NerdWallet explains that buying an ETF gives you “a wide range of companies,” an “excellent choice for beginners”. For example, an S&P 500 index ETF (like VOO or SPY) spreads risk over 500 big companies.
Fractional Shares of Stocks. Apps like Robinhood, Fidelity and others let you buy 0.001 of a share. So $50 could buy a fraction of Amazon or Tesla. This lets you invest in expensive stocks with little money.
Cryptocurrency. Optional and high-risk. Some apps (Robinhood, Coinbase) let you buy tiny amounts of Bitcoin or Ethereum for $10 or less. Only do this if you’re comfortable with volatility.
Robo-advisor portfolios. Platforms like Betterment or Acorns will invest your $100 across a mix of ETFs according to risk level. They handle the rebalancing for you. A small fee applies (0.25% is common).
For beginners, a low-cost ETF or robo-portfolio is usually safer than picking individual stocks. It enforces diversification and hides complexity. As NerdWallet suggests, “brokerage accounts allow you to invest in things like stocks, ETFs and index funds. They’re easy to open…”.
Top Investment Apps & Platforms in USA (2025)
Now that you have the money and mindset, which platform should you use? We’ll cover some beginner-friendly apps for the USA market, including their pros, cons, and referral perks.
Robinhood (USA)
What it is: A popular mobile brokerage that pioneered commission-free trading for stocks, ETFs, options, and crypto. Very user-friendly for beginners.
Account minimum: $0 (you can open with no deposit). You can buy fractional shares with just $1.
Fees: $0 commission on trades. No annual account fee. (Robinhood Gold premium costs $5/month.)
Features: Easy app interface, cryptocurrency trading, IPO access, cash management features. Offers 0.01% APY on uninvested cash (4.00% if you pay for Gold).
Cons: Limited research tools for free users; no mutual funds or bonds; controversies in past.
Bonus: Often gives free stock to new users via referral codes (monetization potential!).
Robinhood is great if you want a simple app to trade stocks, ETFs, or crypto with zero minimum. It supports fractional shares, so you can invest in expensive stocks with $5 or $10. Just be aware: business reviews note it has had regulatory issues, so don’t keep all life savings here. Use it to get started and learn.
Acorns (USA)
What it is: A micro-investing app that automates saving. It “rounds up” your everyday purchases to the nearest dollar and invests the spare change into ETFs.
Account minimum: $5 to start.
Fees: $3/month (Acorns Lite) to $12/month (Acorns Premium). No commissions on trades inside Acorns.
Features: Automated ETF portfolios tailored by risk. “Round-Ups” from debit/credit cards. Bonus investing when you shop with partners (Acorns Earn). Also offers retirement (IRA) and custodial accounts for kids with higher plans.
Cons: The flat monthly fee can be high relative to small account balances. The BBB flagged some customer complaints about withdrawals.
Bonus: Referral programs often give $5–$10 in bonus investments.
Acorns is ideal if you hate complicated decisions and want investments done for you. After you link your credit/debit cards, it will literally invest your spare change. For example, a $2.25 coffee will put $0.75 into your account. Business Insider notes it’s aimed at **“hands-off investors who primarily want automated accounts.”**. Just remember the $3/month fee; if you only invest $5-$10 a week, that fee is a large fraction of your returns.
M1 Finance (USA)
What it is: A hybrid robo-investing/brokerage known for its “pie” portfolios. You create a custom “pie” of stocks and ETFs (or choose pre-built “expert” pies) and set target allocations. M1 then automatically invests and rebalances for you.
Account minimum: $100 to open a standard investment or brokerage account (IRAs require $500).
Fees: $0 commission on trades. No monthly fee for basic (previously $125/yr for M1 Plus, but now rolled into $3 premium). A $3 monthly fee applies if your account is under $10,000. No fee if you have $10K+ or pay $3. $50/year inactivity fee if no trading for 90+ days on a tiny balance.
Features: Fractional shares, automated investing, customizable portfolios, dividend reinvestment, and cash management. IRA, trust, and custodial accounts available. Offers very competitive 7.25% margin loan (if >$2k).
Cons: Requires at least $100 to start (so not quite “just $100” but minimal). Lacks some advanced research tools. The BBB has an “F” rating due to past complaints, and regulators fined M1 for influencer promotions in 2024.
Bonus: (Referral programs may offer $10 or more for new accounts.)
M1 Finance is great if you like the idea of blending DIY and automated investing. You can adjust your pie or let M1 do it. NerdWallet and Business Insider say it suits long-term investors who want automated portfolios with some control. If $100 is tight, you could start with a smaller robo service (e.g. Betterment, which has no minimum). But M1’s $100 requirement is still pretty low for the features you get.
Fidelity (USA)
What it is: A full-service brokerage and robo-advisor. One of the largest firms for all investors.
Account minimum: $0 (no minimum to open a brokerage account). Even its robo-advisor (Fidelity Go) requires $10 to start.
Fees: $0 commission on stock/ETF trades. No account fees, no minimum balance fees. Some managed accounts (Fidelity Go) charge 0.35% on >$25k.
Features: Thousands of commission-free mutual funds and ETFs, fractional shares, robust research tools, and multiple trading platforms (mobile app plus the desktop Active Trader Pro for advanced users). Fidelity also offers tax-friendly accounts (IRA, 529, etc.) and cash management with FDIC-insured options.
Cons: The platform can feel overwhelming for newbies due to its many options. The robo (Fidelity Go) isn’t tax-loss harvesting and has higher fees on large accounts.
Bonus: New accounts often have cash bonuses (e.g. $50-$200 for deposits), and Fidelity has no referral fees.
Fidelity is a rock-solid choice. Its strengths are no fees/minimums and a huge variety of investments. For a beginner with $100, Fidelity lets you buy fractional shares of top ETFs and stocks easily. You get great customer service and plenty of learning resources. If you think you might grow beyond $100, Fidelity has the tools for every stage.
Comparison Table: Beginner Investment Platforms
Platform Min. Balance Fees Best For Bonus
Robinhood $0 ($1 for fractional) $0 commissions Free stock/crypto trading; easy UI Free stock via referral
Acorns $5 to open $3–$12/month Automated micro-investing (round-ups) $5 bonus via invite
M1 Finance $100 for brokerage $0 trading; $3/mo if <$10k Automated “pie” portfolios; fractional ~$10 referral bonus
Fidelity $0 $0 stock/ETF commissions Full-service brokerage; retirement accounts Up to $200 deposit bonus
Betterment $0 ($10 to start investing) 0.25% annual (digital); or $4/mo Robo-advisor (hands-off); no manual trades $25 bonus (promo)
Each platform has referral or sign-up bonuses that we (and savvy bloggers) often feature. For example, Robinhood and Acorns frequently offer free cash or stocks for new users, helping monetize your blog via affiliate links. When writing your own blog or signing up, look for these offers to boost your starting investment.
Step 4: Grow Your Small Investment
Once your $100 is invested, focus on habits that make it grow:
Dollar-Cost Average (DCA). Continue investing a fixed amount regularly (e.g. $20 a month). This “locks in” your average price and reduces risk.
Reinvest dividends. If your ETFs or stocks pay dividends, choose the option to reinvest them. Over years, this compounds your returns.
Keep learning. Use platform tutorials to learn about new options (ETFs, REITs, crypto). But be wary of hype – stick to your goals and risk tolerance.
Stay informed. Follow financial news (but avoid panic-selling during downturns). Recognize that the market’s past tells us it rebounds in time.
Avoid frequent trading. Especially with small amounts, trying to “time” trades can rack up losses. A buy-and-hold approach generally works best for beginners.
Finally, track your progress. Once you have an account, check your balance monthly or quarterly (not daily – that leads to stress). Adjust your portfolio only if your goals or risk tolerance change. As Wealthsimple reminds us, ask yourself before investing if your basic financial health is in order (debt, emergency fund). Then let time, your habits, and the power of compound interest do the rest.
SEO and Internal Linking Suggestions
Meta Title: “How to Invest $100 in USA – 2025 Beginner’s Guide”
Meta Description: “Learn how to start investing with just $100 in 2025. Step-by-step tips on saving, beginner apps (Robinhood, Acorns, M1, Fidelity), and growing your money.”
Suggested Alt-Text for Images:
A young person looking at stock charts on a smartphone (to illustrate investing apps).
A piggy bank or jars of coins labeled “Emergency Fund” and “Investing” (for savings section).
A chart with a rising arrow and small plant growing from coins (to convey compounding growth).
Comments
Post a Comment