How to invest in stocks without much money

Today I'm going to try and answer the question, is it possible to invest in stocks without much money.  I've put together a few options that are definitely possible without much money.

Investing in stocks has traditionally been quite expensive.  Individual stocks aren't that expensive, but the brokerage fees are.  This means, to make a trade financially viable, you usually need to invest $1000+.  But things have changed.  Here are some of the newer ways to invest in stocks, and the good news it costs very little to get started.

Zero Commission Brokers

Robinhood changed the game when they introduced zero commission stock trades.  This means you can buy and sell stocks and you don't pay any fees.  This also means that you don't need a huge amount of capital to get started.  In fact you'll be able to buy smaller amounts of shares at regular periods – a tried and tested investment strategy.

CFD Trading

Robinhood is only available in the U.S.  So if you're looking for a zero commission broker elsewhere, then you might want to look at CFD trading instead.  CFDs are a financial instrument that work like stocks, but you don't end up taking ownership of the underlying asset.  So you can trade shares such as Apple, Google, Tesla etc and not have to worry about settlement or brokerage fees.  The only fees you'll pay are a spread.  I recommend eToro.  It's the CFD brokerage that I use.

You can get started trading CFDs with around $200.

Robo Investment

If you're not looking to trade individual shares, then you can still get access to stock markets through robo investments.  These products invest your cash into diversified index funds.  I've used Acorns for the past year or so and have had good returns.   On Acorns, small amounts of money is transferred across to your investment account.  In fact you can get started with just a couple of dollars.

So there you have it, three different options for you to invest in stocks with a small amount of capital.

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