Most people think they don't have enough money to start investing. In fact, when you save money into a savings account and earn interest, you're already investing. However, keeping your money in a savings account doesn't give it the opportunity for the highest earning potential.
So are you ready to venture into long-term investing in the stock market?
There are discount online brokerages and robo-advisor platforms that can help you invest your money. However, you're looking to dip your toes and want to invest only a few dollars.
I've reviewed some of the best micro-investing apps that help you invest in small dollar amounts or your spare change. These micro-investing apps are easy to use and some are free or have small monthly or trading fees.
With these apps, you don't need $500 to start investing. For transparency, we currently use these apps and have affiliate relationships with them. If you decide to use these micro-investing apps, they pay us a referral commission. The money we earn helps us continue our mission. I want to thank you ahead of time if you decide to use them through our links.
Here are the micro-investing apps I've reviewed and recommend to help you start investing.
Best Investing App with Your Spare Change: ACORNS
Acorns is an automated savings tool and investing app that rounds up your purchases on linked credit or debit cards and invests the amount in an automated investment portfolio. For example, if you bought a coffee for $3.25, Acorns will round up the purchase to $4.00 and move $0.75 into your Acorns account. Once your “Round-Ups” equal $5.00, it will be invested. You can make one-time investments into your account at any time.
When you create your profile, Acorns will suggest a portfolio based on your answers, but you have the option to change them. Your portfolio determines how much gets invested. Acorns have two fee structures: $1 per month for account balances under $5,000, or 0.25% of your account balance on accounts over $5,000 (for example, $25 on a $10,000 account balance). Read the complete Acorns review.
- Rounds up your purchases and invests once $5 is saved
- Get more investing dollars with “Found Money”
- Easy to join and set up
Best Investing App with Free Trades and No Commissions: ROBINHOOD
Robinhood is an app with features you may find with an online discount broker. The streamlined app can actually be a benefit for the beginner or more seasoned investor seeking simplicity and ease of use.
Robinhood trades are not self-clearing and use Apex for its trades. Streamlined interface for easy trades and trade stocks or exchange-traded funds (ETFs). There is no commission or fees for trades. And there are no minimum investment requirements. Read the complete Robinhood review.
- Buy and sell stocks with no trade fees
- Easy to join and intuitive platform
- View stock performance history
Best Investment App for Fractional Shares: STOCKPILE
Stockpile is an app and online stock broker with a twist.You can buy fractional shares of your favorite companies starting at $25. In addition to letting its users buy and sell stocks, the service also sells gift cards that can be used toward the purchase of stocks and exchange-traded funds (ETFs).
There is no minimum investment and stock trades will cost you $0.99/trade which is significantly lower than other brokers. If you plan to buy gift cards, there are fees associated with the cards. You can buy gift cards to give to others through the website and other retailers. Read the complete Stockpile review.
- Buy fractional shares of stock of your favorite companies starting at $25
- Easy to join and intuitive app to use
- Give stocks as gifts and share accounts with minors
Best Investing App with $5 Investments : STASH
Stash offers investing and savings to users. The Stash Invest app allows you to invest with as little as $5. Stash has 30 different themed investments from which you can choose based on risk tolerance. It's is best for beginners or those who need more investment guidance.
Stash service has a $5 minimum investment and charges $1 a month for account balances under $5,000 or 0.25% annual fee for accounts $5,000 or more. Stash offers great investing resources and articles to help you learn more. Read my complete Stash Investing review.
- Start investing with as little as $5
- Automate transfers from an external checking account on a date and frequency you specify
- Easily decide where to invest based on your priorities
My Smile Summary: Get started with these micro-investing apps
If you find it hard to invest money or don't have the hundreds of dollars to open an online brokerage account, these micro-investing apps can be your answer. Try these apps and see how they work for you and which one is best. These apps may look similar but they all excel at something different. In fact, if you tried using all these apps today, you would have made $20 in a few minutes.