How Much Money Do You Need to Start Investing? (realistic minimums)

A lot of aspiring investors delay for years, waiting to amass the “right” amount before entering the market. But today, that excuse carries less weight because you don’t need to wait until you have a perfect amount. Thanks to fractional shares, zero-minimum brokerages, micro-investing, and automated platforms, you can start investing meaningfully with a few dollars. And it doesn’t matter how much money you start with, what matters is starting consistently with the resources you have.

Vanguard, for example, notes that how much you need to start depends heavily on the product and platform, you could begin with $1 in some cases or several thousands in others.

Read on how much you realistically need to start investing, what factors to consider, and show you examples of low-capital options and platforms you can use today.

**What a Realistic Minimum Looks Like (*and how they Varies***)

Let’s explore ranges and what factors push the minimum up or down.

Very Low Minimums: $5 to $50

Thanks to fractional shares and micro-investing apps, you can start investing with very small amounts:

1 Fractional shares let you buy, say, $5 of “Apple” stock even if a full share costs $175.

2 Charles Schwab’s Stock Slices lets you buy slices of S&P 500 companies for as little as $5 per slice.

3 Some apps (like Stash) allow you to invest as little as $0.01 or a few cents in fractional shares or ETFs.

Many brokerages let you open an account with zero minimum, thoughyou’llstill need enough money to execute your first trade (even $10 or $20 might suffice).

Modest Minimums: $50 to $500

As you scale, you gain more flexibility and can avoid some inefficiencies:

Investing in ETFs (index funds) or low-cost mutual funds often works well in this range.

Some mutual funds still require minimums (example $500 or $1,000) depending on the provider.

Having $100 to start gives you room to hold a few different positions or diversify a bit.

Larger Minimums: $1,000 and Above

You’ll see this in some more traditional setups:

Some brokerages require $1,000 to open certain “special” accounts (example margin, managed accounts).

Some mutual funds or advisor-based accounts still maintain minimums in the $1,000–$3,000 range.

Read: Beginners vs Day Traders: Why Long-Term Investing Outperforms Chasing Trends

But for most individual investors, you don’t need that much to begin.

Why Even Small Amounts Make Sense

Why bother investing with modest amounts? Three reasons stand out:

1. Compounding time works in your favor
Starting early even with $10 or $20 a month lets returns compound over many years, which is far more powerful than starting later with larger sums.

2. Learning in low-stakes mode
You make mistakes, test strategies, get comfortable with market behavior, all without risking too much capital.

3. Momentum & habit formation
Once the investment habit starts (even small), you’ll more readily scale it when your income increases.

As many personal finance guides emphasize, even if you can only put 1% or 2% of your income now, it’s better to start than wait.

How to Start, Smart Steps and Tips

Starting small doesn’t mean being naive or sloppy. Here’s how to do it well:

1. Make sure your foundation is solid

Before putting money into risk assets, ensure:

You have an emergency fund (3–6 months of expenses)

High-interest debt (especially credit cards) is under control

You understand your goals and risk tolerance.

Many investing guides advise tackling high-interest debt first, because few investments reliably beat 20% interest.

2. Use fractional shares / dollar-based investing

Choose brokerages that allow you to specify dollar amounts instead of share counts. For example:

Fidelity lets you place “dollar” orders, not just “share” orders, across thousands of stocks and ETFs.

Interactive Brokers supports fractional trading on eligible U.S., Canadian, and European stocks/ETFs.

This ensures every dollar is working, even if the stock price is high.

3. Dress it with low-cost ETFs / index funds or diversified funds

Rather than betting big on one stock, using ETFs or index funds gives you instant diversification, which is especially helpful when your capital is small.

Many ETF platforms have no minimum or for as low as $100.

Some robo-advisors now allow investing with just $100, whereas traditional minimums used to be $3,000. Vanguard, for instance, cut its robo-advisor minimum to $100.

4. Automate and drip

Set up automatic transfers from checking to investment account (even $10 or $20 monthly). That keeps discipline and avoids “waiting for the right time.”

Read: Student Credit Cards: How to Build Credit as a First Timer

5. Be fee-aware

Small accounts are especially sensitive to fees and costs. Avoid high transaction charges, fund expense ratios, and account maintenance fees that eat your gains. Even 1–2% fees annually can erode much of your return at a small scale.

6. Scale when you can

As your income rises, increase your contributions. Invest windfalls (bonuses, tax refunds) instead of spending them.

7. Use micro-/round-up apps or features

Some apps automatically “round up” your spending and invest the spare change, making investment almost invisible. This helps build wealth passively over time.

Platforms and Apps That Let You Begin With Small Capital

To bring these ideas into real tools, here are U.S. platforms and apps built for small-dollar investing:

1. Schwab Stock Slices: Buy slices of S&P 500 stocks with as little as$5per slice. (Schwab Brokerage)

2. Fidelityfractional shares / dollar-based orders: Over 7,000 U.S. stocks and ETFs available in fractional amounts, with low cost.

3. Interactive Brokers: Supportsfractional share trading across eligible markets, bringing broad access even for small accounts.

4 Stash: Known for allowing investing with as little as $0.01 in fractional shares, making it accessible for ultra-low budgets. (stash.com)

5. F1 Finance: Offers fractional investing, automatic rebalancing, and pie-based portfolios; good for semi-passive investors.

These tools reduce friction and let you focus more on strategy and consistency than chasing large minimums.

Here are three examples to show how small amounts can grow over time, and how to allocate them wisely.

Example A: $20 monthly

You direct $20 each month into a low-cost diversified ETF via fractional shares. Over 30 years, assuming an average 7% annual return (after inflation), your contributions grow significantly, just by virtue of consistency and compounding.

Example B: $5 one-time start

You open a brokerage account and buy fractional shares of a diversified ETF for $5 via Schwab Stock Slices. Over time you build on that with monthly additions.

Example C: $100 lump sum

You invest $100 into an S&P 500 ETF, or into something like a balanced robo-advisor fund with automated rebalancing, then continue contributing monthly.

What If You Want to Trade More Actively?

If your aim is active trading (swing, day trades), then your minimums need to be higher, both to cover volatility and, in the U.S., to meet regulatory thresholds:

For day trading, the Pattern Day Trader rule requires a minimum account balance of $25,000 if you execute 4 or more day trades within 5 business days.

For swing trading or speculative strategies, many suggest at least $2,000 or more to give you breathing room from commissions and volatility.

Read: Robo-Advisors vs Human Advisors: Which Is Better?

But for long-term investing, these constraints are less relevant, you don’t need to hold to those high thresholds.

The Takeaway

You can start investing withas little as $5, $10, or $20in many modern U.S. platforms, thanks to fractional shares.
What matters more than a large opening balance isconsistency,low costs, and getting started.
Use diversified funds/ETFs orroboadvisors for small capital, automate your contributions, monitor costs diligently.
As your income grows, scale your capital. Butdon’tlet “not enough money” remain a barrier, momentum comes from starting early.

We believe the information in this material is reliable, but we cannot guarantee its accuracy or completeness. The opinions, estimates, and strategies shared reflect the author’s judgment based on current market conditions and may change without notice.

The views and strategies shared in this material represent the author’s personal judgment and may differ from those of other contributors at IntriguePages. This content does not constitute official IntriguePages research and should not be interpreted as such. Before making any financial decisions, carefully consider your personal goals and circumstances. For personalized guidance, please consult a qualified financial advisor.