Micro-investing is investing in small increments by buying fractions of shares. Some micro-investing platforms allow people to invest as little as $1 to buy a fraction of a share. It is an option for many who may find the relatively high minimum investment requirements, hefty fees or both from traditional investment platforms as potential barriers to starting investing.
Micro-investing is not different from “traditional” investing as the aim is to grow your money. The benefit of micro-investing is the chance for your invested amount to grow larger compared to funds deposited into a savings account.
By making investments simple and small, it has gained in popularity with a larger percentage of the population. Micro-investors use micro-investing platforms like Acorns and Stash to buy small increments of exchange-traded funds (ETFs) or index funds.
