How to Start Investing With $100 (A Beginner's Guide for 2026)

"I don't have enough money to invest."

I hear this constantly. And 20 years ago, it was kind of true. Brokerages had minimums. Commissions ate your profits. Buying a single share of Amazon wasn't an option for most people.

Today? You can start investing with $100. Or $50. Or even $1.

The barriers are gone. The only thing stopping you is... starting.

Why $100 Is Enough

Here's what's changed:

• Fractional shares — You can buy a piece of any stock, no matter the price
• Zero commissions — Most brokerages don't charge trading fees anymore
• No minimums — Many platforms let you open an account with $0
• Easy apps — Invest from your phone in minutes

That $100 won't make you rich overnight. But it will do something more important: it'll get you in the game. And once you're in, you can build.

Step 1: Choose a Brokerage

You need an account to invest. Here are the best beginner-friendly options in 2026:

Fidelity

• No minimums, no fees
• Fractional shares ("Stocks by the Slice")
• Excellent research tools
• Great for long-term investors

Charles Schwab

• No minimums, no fees
• Fractional shares (Schwab Stock Slices)
• Strong customer service
• Recently merged with TD Ameritrade

Robinhood

• Designed for beginners
• Clean, simple interface
• Fractional shares available
• Good for learning, but consider graduating to Fidelity/Schwab later

Acorns

• Rounds up purchases and invests the change
• Good for hands-off beginners
• Small monthly fee ($3-5)

My recommendation for pure beginners: Fidelity. It's free, powerful, and you won't outgrow it.

Step 2: Open Your Account (10 Minutes)

You'll need:

• Social Security number
• Bank account for transfers
• Basic personal info

Choose a taxable brokerage account to start. (If you want tax advantages and won't touch the money until retirement, open a Roth IRA instead — same process.)

Link your bank account and transfer your first $100.

Step 3: Decide What to Buy

This is where beginners get paralyzed. Thousands of options. Which one?

Keep it simple. Here are three approaches:

Option A: One ETF (Easiest)

Buy a single broad market ETF and you're instantly diversified across hundreds of companies:

• VTI (Vanguard Total Stock Market) — Owns the entire U.S. stock market
• VOO (Vanguard S&P 500) — Owns the 500 largest U.S. companies
• SCHB (Schwab U.S. Broad Market) — Similar to VTI, very low cost

With fractional shares, you can buy $100 of VTI even though one share costs ~$270.

This is the "set it and forget it" approach. Warren Buffett himself recommends S&P 500 index funds for most investors.

Option B: Target Date Fund (Even Easier)

If you're investing in a Roth IRA, you might consider a target date fund like:

• Fidelity Freedom 2055 (if you plan to retire around 2055)
• Vanguard Target Retirement 2050

These automatically adjust from aggressive to conservative as you age. One fund, done.

Option C: Individual Stocks (More Involved)

Want to own specific companies? With fractional shares, you could split your $100:

• $25 in Apple
• $25 in Microsoft
• $25 in Amazon
• $25 in Nvidia

This is riskier than an ETF because you're less diversified. But it can be a good learning experience if you're interested in understanding individual companies.

My suggestion: Start with Option A (a broad ETF), then add individual stocks later as you learn.

Step 4: Actually Buy It

In your brokerage app:

1. Search for the ticker (e.g., "VTI")
2. Click "Buy"
3. Enter dollar amount ($100)
4. Confirm the order

That's it. You're now an investor.

Step 5: Automate and Keep Going

Here's the secret: $100 once won't change your life. $100 every month will.

Set up automatic recurring investments:

• Most apps let you auto-invest weekly or monthly
• $25/week = $1,300/year
• $100/month = $1,200/year

At a 7% average annual return:

• $100/month for 10 years = ~$17,400
• $100/month for 20 years = ~$52,000
• $100/month for 30 years = ~$122,000

The earlier you start, the more time does the heavy lifting.

What NOT to Do

Don't try to time the market Nobody consistently predicts short-term moves. Just invest regularly regardless of what the market is doing.

Don't panic sell The market will drop. Sometimes a lot. That's normal. Stay the course.

Don't day trade With $100, frequent trading will just generate losses and frustration. Think long-term.

Don't invest money you need soon Only invest money you won't need for 5+ years. Keep your emergency fund separate.

Don't fall for "hot tips" If someone on TikTok promises 1000% returns, run. Boring index funds beat most stock pickers over time.

Taxes: What You Need to Know

In a regular brokerage account:

• You'll owe taxes on dividends (usually small)
• You'll owe capital gains tax when you sell at a profit
• Long-term gains (held 1+ year) are taxed lower than short-term

In a Roth IRA:

• No taxes on gains ever (as long as you wait until 59½ to withdraw)
• This is why Roth IRAs are so powerful for young investors

The Bottom Line

Starting to invest with $100 isn't about getting rich quick. It's about building a habit that compounds over decades.

Your action plan:

1. Download Fidelity (or your preferred app)
2. Open a brokerage account
3. Transfer $100
4. Buy VTI or VOO
5. Set up monthly auto-invest
6. Don't touch it

That's the whole game. The best time to start was 10 years ago. The second best time is today.

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First time investing? Tell me what you bought in the comments — I'd love to hear what you picked.