The best online investment platforms to invest less than $ 100

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Technology makes it easier for small investors to buy shares of publicly traded companies with less money.

Before the advent of online investment platforms such as Sharesies and Hatch, people needed a large amount of money to invest in the capital markets and needed a brokerage firm.

But digital platforms allow people to invest as little as a dollar.

So where to invest your money if you only have $ 100?

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Simran Kaur, half of the chart-topping investment podcast Girls That Invest, said that with platforms like Sharesies and Hatch, it’s easier than ever to put money into the stock market.

But before investors get started, they should take a few steps to determine their best options, she said.

“I think the best way to approach this is to work backwards,” Kaur said. “Rather than deciding what to invest in, it’s good to start with ‘why I’m investing’.”

Simran Kaur and her best friend Sonya Gupthan have started a financial podcast aimed at helping young people invest in the <a class=stock market and shatter some age-old stereotypes.” style=”width:100%;display:inline-block”/>

LAWRENCE SMITH

Simran Kaur and her best friend Sonya Gupthan have started a financial podcast aimed at helping young people invest in the stock market and shatter some age-old stereotypes.

She said it was important to understand what kind of risk an investor was willing to take on, as well as having a specific goal in mind that they planned to use the money they invested in.

Since $ 100 is a small amount of money, it was important to choose investments wisely within the platform, Kaur said.

“Once you know how long you want to invest and what your risk appetite is, you can work backwards,” she said.

“For less risk, you’ll look to what we call blue chip companies, these old lofty companies that you know are going to stay.

“But if you want to invest for more risk and return, then you can look to technology stocks like Google or Apple as another option.”

Whether investors invest $ 100 or more, they will need to be aware that recent stock market performance may not continue in the future, Kaur said.

“In the last couple of years we’ve seen a bull market, which means the equity market has generally gone up. Even if you brought in an old business, chances are it would have increased in value, especially in the United States, ”she said. “But this is not the normal case.

“No one will know when the bull market ends, so it’s important to remember the fundamentals of investing, which you hold for the long term,” Kaur said. “Just because your investment is losing value doesn’t mean you have to sell it all. Remember your purpose and what you stand for.

Chris Walsh, senior researcher at Money Hub, says diversification and low fees are essential for investors to start with small amounts of money.

Provided

Chris Walsh, senior researcher at Money Hub, says diversification and low fees are essential for investors to start with small amounts of money.

Chris Walsh, principal researcher at Money Hub, said it’s important for investors who invest only small amounts to look to diversification and low fees.

Walsh recommended investors with little cash to look to exchange-traded funds (ETFs) or index funds, as choosing individual funds could result in a loss of money for some investors.

“People who are trying to invest $ 100 should go into any fund to learn a bit more about investing without running the same risk as choosing their own stocks,” he said. “If you have a negative experience at first, you might be completely turned off to invest. “

Of all the investment platforms available to investors with $ 100 in their pocket, Walsh said his choice is Kernel Wealth, which has no transaction fees, low fund fees, and no subscription fees for less than $ 100. $ 1,000.

Investors must first determine their risk appetite.

Jan Mika / 123RF

Investors must first determine their risk appetite.

Platforms to invest less than $ 100

Shares:

  • Minimum investment: 1 cent
  • Contribution: no charge
  • Transaction fees: 0.5% on amounts up to $ 3,000, 0.1% on amounts over $ 3,000
  • Exchange fees: 0.4%
  • Number of members: 480,000

Hatch:

  • Minimum investment: 1 cent
  • Contribution: no charge
  • Transaction fee: $ 3 per exchange
  • Currency exchange fee: 0.5%
  • Number of members: 150,000

Stake:

  • Minimum investment: $ 50
  • Contribution: no charge
  • Transaction fee: 1% on deposit and withdrawal
  • Currency exchange fees: No fees
  • Number of members: Not available

Core:

  • Minimum investment: $ 1
  • Membership fees: free for less than $ 1,000 invested, $ 3 per month for portfolios over $ 1,000
  • Transaction Fee: None
  • Currency exchange fees: None
  • Number of members: 5000

If you invested $ 100 in each of the funds, how much of your capital will be invested?

  • Shares: $ 99.50 (New Zealand investment), $ 99.102 (foreign investment)
  • Hatch: $ 96.50
  • Stake: $ 99
  • Core: $ 100

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