This is not investment advice. The information provided is for educational and informational purposes only and does not constitute a recommendation to buy or sell any financial product.
You can start investing with one dollar at most major brokers. The days of needing thousands of dollars to open a brokerage account are over.
How much you need by broker
| Broker | Minimum to open | Minimum to buy | Fractional shares |
|---|---|---|---|
| Fidelity | $0 | $1 | Yes ($1+) |
| Charles Schwab | $0 | $5 | Yes (S&P 500 stocks) |
| Robinhood | $0 | $1 | Yes ($1+) |
| Interactive Brokers | $0 | 1 share price | No (whole shares) |
| Vanguard | $0 | 1 share price | Vanguard ETFs only |
| Webull | $0 | $5 | Yes ($5+) |
| E*TRADE | $0 | 1 share price | No |
| SoFi Invest | $0 | $5 | Yes ($5+) |
If your broker does not support fractional shares, you need enough to buy at least one full share. An ETF priced at $500 means you need at least $500 at those brokers. At Fidelity or Robinhood, $1 buys a fraction of the same ETF.
The power of starting small
Investing $50 per month starting at age 25, with a 7% average annual return, grows to:
- After 10 years: $8,658
- After 20 years: $26,048
- After 30 years: $61,003
- After 40 years: $132,012
The key is consistency, not the starting amount. A $50 monthly investment over 30 years beats a $5,000 lump sum invested once and forgotten.
Should you pay off debt first?
High-interest debt (credit cards at 18%+ APR) should be paid off before you invest. Paying off $1,000 of credit card debt saves you $180 per year — a guaranteed 18% return that no investment can match.
Low-interest debt (mortgages at 4%, student loans at 5%) is less urgent. You can invest and pay down this debt simultaneously.
An emergency fund of three to six months of expenses should also come first. Keep this in a high-yield savings account, not invested in stocks.
Dollar-cost averaging
Dollar-cost averaging means investing a fixed amount on a regular schedule, regardless of whether the market is up or down. When prices are low, your $50 buys more shares. When prices are high, it buys fewer.
This strategy removes the stress of trying to time the market and is proven to produce better results for most investors than lump-sum attempts at market timing.
Common questions
Can I start with $0? Technically yes — open an account with no minimum deposit and invest once you have a few dollars in the bank. But you need at least $1 to buy a fractional share.
What should I buy with a small amount? A broad-market ETF like VTI or VOO. With fractional shares, you can buy a slice for as little as $1.
Is it worth investing only $50 per month? Yes. $50 per month invested for 40 years at 7% grows to over $130,000. Small amounts compound into meaningful sums.
Where to start
Open an account with Fidelity or Robinhood — both support $1 fractional shares. Set up an automatic monthly transfer for whatever amount you can commit to. Read the how to start investing guide for the full process.