Investing in stocks doesn’t require a fortune to get started. With the right strategy and tools, you can begin building your wealth, even with a small budget. The key is to know where to start, how to manage your money, and what resources are available to you. Fortunately, the rise of investment apps has made it easier than ever for beginners to access the stock market, even with minimal capital.

In this post, we’ll walk through several tips for investing in stocks with a small budget, along with the best apps for new investors that make investing accessible, low-cost, and user-friendly.

1. Start with Fractional Shares

What Are Fractional Shares?

Fractional shares allow you to invest in a portion of a stock, instead of needing the full price of one share. For example, if a stock costs $1,000 per share, you can buy a fraction of it—say $50 worth. This makes high-priced stocks like Amazon (AMZN), Tesla (TSLA), or Apple (AAPL) accessible to anyone, regardless of budget.

Best Apps for Fractional Shares:

• Robinhood: Offers commission-free fractional shares on stocks and ETFs. You can start investing with as little as $1.
• Charles Schwab: Schwab’s Stock Slices program lets you buy fractional shares of S&P 500 companies for as little as $5.
• Fidelity: Fidelity offers fractional share investing through its “Stocks by the Slice” program, and you can start investing with just $1.

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2. Consider Exchange-Traded Funds (ETFs)

What Are ETFs?

ETFs are investment funds that hold a basket of stocks or other assets. By buying one share of an ETF, you’re gaining exposure to a diversified portfolio, which spreads out risk. ETFs can focus on entire stock markets, specific sectors, or even other types of assets like bonds or commodities. Most ETFs trade for less than $100 per share, making them great for small budgets.

Best Apps for Buying ETFs:

• M1 Finance: M1 Finance allows you to invest in pre-built or custom ETFs with fractional shares. It’s ideal for small investors who want to diversify their portfolio.
• Wealthfront: Wealthfront offers low-cost ETFs in their automated portfolios, and you can start investing with as little as $500.
• Vanguard: Vanguard offers a wide range of low-cost ETFs, and their app allows you to invest with low minimums and no commissions on trades.

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3. Dollar-Cost Averaging (DCA)

What Is Dollar-Cost Averaging?

Dollar-cost averaging is an investment strategy where you invest a fixed amount at regular intervals (e.g., weekly, monthly). By doing this, you buy more shares when prices are low and fewer shares when prices are high, which helps mitigate the impact of market volatility.

Best Apps for Setting Up Dollar-Cost Averaging:

• Acorns: Acorns is an excellent app for small investors. It rounds up your everyday purchases to the nearest dollar and invests that spare change into a diversified portfolio. It’s a great way to automate dollar-cost averaging without needing a large budget.
• Stash: Stash allows you to invest with as little as $5 and set up recurring investments on a weekly or monthly basis. It’s designed for beginners and makes DCA easy.
• Betterment: Betterment is a robo-advisor that automatically invests your money in a diversified portfolio based on your risk tolerance. It also lets you set up automatic deposits, making DCA simple and efficient.

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4. Invest in Dividend Stocks or Funds

What Are Dividend Stocks?

Dividend stocks pay a portion of their profits to shareholders in the form of regular cash payouts, typically on a quarterly basis. Many dividend stocks are established companies with a long history of paying out dividends. You can use dividends to reinvest and buy more shares, creating a snowball effect for your portfolio.

Best Apps for Dividend Investing:

• Robinhood: Robinhood makes it easy to buy dividend-paying stocks with no commission fees. It’s a great way to start investing in dividends without paying high fees.
• Fidelity: Fidelity offers a wide selection of dividend stocks and ETFs. You can use their platform to filter for dividend-paying stocks and build a portfolio focused on income.
• Webull: Webull also offers commission-free trading on dividend stocks and ETFs, and their app provides powerful tools for tracking dividend yield and income.

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5. Look for No-Fee Investment Platforms

What Are No-Fee Platforms?

When you’re working with a small budget, fees can quickly eat into your returns. Many modern investment apps offer commission-free trading, meaning you can buy and sell stocks and ETFs without paying additional costs. This is a big advantage for small investors looking to maximize their returns.

Best No-Fee Investment Apps:

• Robinhood: Perhaps the most well-known commission-free platform, Robinhood allows you to trade stocks, ETFs, and options with no fees. They also offer fractional shares, which is perfect for small budgets.
• Webull: Another no-fee platform that offers commission-free trading on stocks, options, and ETFs. Webull also offers fractional shares and provides advanced trading tools for beginners.
• SoFi Invest: SoFi offers no-fee stock and ETF trades, and you can start with as little as $1. It also offers automated investing, which helps you build a diversified portfolio over time.

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6. Real Estate Investment Apps

What Are Real Estate Investment Apps?

If you’re interested in real estate but don’t have enough capital to buy property, real estate investment apps allow you to invest in real estate projects with smaller amounts. These platforms let you pool your money with other investors to fund real estate projects, often in commercial or residential properties.

Best Real Estate Investment Apps:

• Fundrise: Fundrise allows you to start investing in real estate with as little as $10. It offers a variety of investment portfolios focused on residential, commercial, and mixed-use properties.
• RealtyMogul: RealtyMogul allows you to invest in real estate with as little as $1,000, and it offers both equity and debt investments in commercial real estate.
• DiversyFund: DiversyFund focuses on real estate equity investments, allowing you to invest in diversified portfolios with a minimum of $500.

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7. Crypto Investment Apps (for the Risk Tolerant)

What Are Crypto Investment Apps?

Cryptocurrencies like Bitcoin, Ethereum, and others have become an increasingly popular way to diversify portfolios. While they come with higher volatility and risk, many people see them as a growth opportunity. Crypto investment apps allow you to buy fractions of coins, making it easier to get started with a small budget.

Best Crypto Investment Apps:

• Coinbase: Coinbase is one of the most popular platforms for buying, selling, and storing cryptocurrencies. You can invest in fractions of coins like Bitcoin, Ethereum, and others.
• Cash App: Cash App allows you to buy Bitcoin in small amounts (even as low as $1), making it an easy entry point for small investors who are interested in crypto.
• Gemini: Gemini is a regulated crypto exchange that offers a user-friendly platform and the ability to buy fractional shares of Bitcoin and other cryptocurrencies.

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Conclusion: Small Budgets Don’t Limit Big Opportunities

With the rise of user-friendly investment apps, you no longer need a large budget to start building your portfolio. Whether you’re buying fractional shares, ETFs, dividend stocks, or even real estate and cryptocurrencies, there are plenty of ways to invest with as little as $1.

The key is to start. With the right strategy—whether it’s dollar-cost averaging, reinvesting dividends, or taking a long-term approach—you can begin building wealth even on a small budget. And with the help of these apps, the process has never been easier or more accessible.

By using the right apps, staying consistent with your contributions, and making informed investment decisions, you’ll be on your way to growing your wealth and reaching your financial goals—no matter how much you start with. Happy investing!