Guides · Getting started
How to invest in the stock market on a small budget
In short: On a small budget, the key is to avoid high fees and to diversify in one go with an ETF. Investing a small amount regularly, even $20 a month, beats waiting until you have "enough".
The real enemy: fees
On $50, a $2 fee is 4%: it takes years of gains to make that back. With a small budget, pick a low-cost broker or a regular investment plan, which is often cheaper or free on some ETFs.
Why an ETF rather than a single stock
With $50 you can only buy one or two shares: if that company falls, you lose a lot. A world ETF holds hundreds of companies, so a single bankruptcy barely matters.
What to expect
With $50 a month for 10 years you put in $6,000. Depending on the years, the result can be well above or below that: nothing is guaranteed. The simulator on the site shows a realistic range.
FAQ
How much do I need to start?
There is no legal minimum. In practice, a few dozen dollars or euros are enough for an ETF with most online brokers.