How to invest with little money?

You don't need big money to start investing and these days it's possible to start with as little as £1. This guide helps you learn how to invest with little money.
By:  &  James Knight
Updated: Jul 19, 2022

There are lots of ways you can invest and with so many investment apps and robo-advisors on the market you can start with just a few pennies. This guide explains the different ways you can invest with little money and explains what you need to know about micro investing apps. 

Ways to invest with little money

If you only have a small amount of money to invest, you still have lots of options available to you. Most of these are based around a more passive investment style, where you use robo-advisors, ETFs, or trusts to spread your money over as wide an area as possible. However, you can still take more active control if you like. 

Here are 6 of the best ways to invest with a small starting pot of money. 

1. Micro investing apps 

Micro investing apps allow you to invest small amounts of money consistently into the stock market.  Micro investing apps work by rounding up your everyday spending to the nearest pound and investing the additional money into stocks or ETFs. The whole process is automated and you just need to connect an app to your bank card or account. Moneybox is a top rated micro investing app in the UK.

Using micro investing apps is one of the easiest ways to invest with little money. Not only do they offer a hands off approach, but they give you the ability to invest in some of the largest companies in the world through fractional shares; where you can own a half or a quarter of a share in a large company that might otherwise be out of your price range.

This approach is a great for those who are just starting out. It’s often the best approach for student investors or new graduates who have just taken their first job. Essentially, anyone who makes a lot of small, regular purchases.

2. Robo advisors

Robo-advisors are automated investment apps that offer a completely hands-off approach to growing your money. They are easy to use, have low costs, and most allow you to invest with a small amount of capital. Getting started with a robo-advisor takes just a few minutes. Nutmeg is a well known robo-advisor in the United Kingdom.

All you have to do is download an app, fill in a questionnaire about your goals and how much risk you’re willing to accept, and the software takes care of the rest. Robo-advisors use AI to automatically invest into funds which the technology matches to your criteria. These services are similar to micro-investing apps although they require you to deposit money rather than rounding up your spending.

3. Commission free investment apps

Investment apps and platforms are the best option if you want to make decisions about where your money is being invested yourself. Keeping costs down is important when you’re starting with little money and many of the best known brokerage firms now let you invest without paying a commission. 

Many apps have low minimum deposit requirements, and you can invest from as little as £1 in some cases. Thanks to fractional shares you’ll be able to hold some of the biggest names on the stock market without paying thousands per share. You’ll also find other assets in addition to stocks and shares, so you’ll have a wider choice to invest in. 

4. Stocks and shares

You can invest in stocks and shares of companies that are expected to grow in value over the long term. Growth stocks can produce large returns, even from a small initial investment as long as you’re prepared to stay patient. When investing in growth stocks, you can always continue to add money over time. 

Another approach you can take is to invest in dividend paying stocks. These companies reward their shareholders with regular payments known as dividends. Investing in dividend stocks is a good way to earn an income which you can then reinvest into other assets to grow your pot.

5. Low cost ETFs and funds

ETFs and funds track the performance of a specific industry or sector and make it an easy way to invest with little knowledge or money. Funds and ETFs both usually have management fees although they can be very inexpensive compared to other forms of investing. 

You can use a commission free investment app or platform to invest in ETFs and funds and many of the best platforms offer research to help you pick the best performers. Most robo-advisors invest into funds although taking a DIY approach can work out slightly cheaper as you wont have management fees for using an automated service. 

6. Savings accounts

While a savings account isn’t really considered a form of investing, using one is still an easy way to grow your money. The interest you can earn from most savings accounts is not particularly high although it is possible to obtain higher yields if you’re prepared to keep your money tied up for a longer period of time.

Some savings accounts often offer better rates of interest if certain conditions are met such as lock in period and amount saved. If you don’t want to use a traditional savings account from a bank, there are now lots of other options available. Crypto companies like Nexo offer fixed interest rates on your savings and are generally much higher than a bank.

What brokers can I use to invest with little money?

The brokers below all have low minimum deposits and low trading fees. They are perfectly suited to an investor who wants to get started but only has a little money to begin with. Just click on any of the links to register an account and get started in minutes.

1
Min. Deposit
$10
Promotion
User Score
10
Trade/invest in stocks with just $10
Deposit with ACA, Wire, Pay with my bank
Invest for dividends and get payout on stocks on Ex-Dividend day
Start Trading
Pros:
Trade/invest in stocks with just $10
Deposit with ACA, Wire, Pay with my bank
Invest for dividends and get payout on stocks on Ex-Dividend day
Payment Methods
Bank Transfer, Wire Transfer
Full regulations list:
CySEC, FCA
Investoo Ltd is compensated if you access certain of the products or services offered by eToro USA LLC and/or eToro USA Securities Inc., as applicable. This compensation incentivizes Investoo Ltd to describe those products and services in favorable terms. Any testimonials contained in this communication may not be representative of the experience of other eToro customers and such testimonials are not guarantees of future performance or success.
2
Min. Deposit
$0
Promotion
User Score
9.3
$0 commission and $0 Options contract fees
Upgraded research with advanced charts
Smart Menus for faster trades
Start Trading
Pros:
$0 commission and $0 Options contract fees
Upgraded research with advanced charts
Smart Menus for faster trades
Payment Methods
Full regulations list:
3
Min. Deposit
$500
Promotion
User Score
8.7
We offer one of the best execution speeds in the industry with low latency
Award-winning support in 14 languages
Trade with precision from 0.5 pips on EURUSD
Start Trading
Pros:
We offer one of the best execution speeds in the industry with low latency
Award-winning support in 14 languages
Trade with precision from 0.5 pips on EURUSD
Payment Methods
Bank Transfer, Bank Wire, Credit Card, Debit Card, PayPal, Sofort, neteller, skrill
Full regulations list:
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

What should I do next?

Now that you’ve learned about the different options available for investing with little money you may want to get started. You’ll need to use an online brokerage account or investment platform and you can check out our recommendations above. Alternatively, if you want to learn more about investing you can check out our many free courses on the stock market and other assets.


Our editors fact-check all content to ensure compliance with our strict editorial policy. The information in this article is supported by the following reliable sources.

Invezz is a place where people can find reliable, unbiased information about finance, trading, and investing – but we do not offer financial advice and users should always carry out their own research. The assets covered on this website, including stocks, cryptocurrencies, and commodities can be highly volatile and new investors often lose money. Success in the financial markets is not guaranteed, and users should never invest more than they can afford to lose. You should consider your own personal circumstances and take the time to explore all your options before making any investment. Read our risk disclaimer >

Prash Raval
Financial Writer
When not researching stocks or trading, Prash can be found either on the golf course, walking his dog or teaching his son how to kick a… read more.
James Knight
Editor of Education
James is a lead content editor for Invezz. He's an avid trader and golfer, who spends an inordinate amount of time watching Leicester City and the… read more.