Start Investing With $5 or Less

Start Investing With $5 or Less
Start Investing With $5 or Less

You want to invest for a while, but you’re not sure? Maybe you’re sure to invest, but you’re afraid of risk? Here’s your chance!

I’m talking about 3 applications that will minimize the risk and get the opportunity to invest. In the last few years, various companies have introduced Apps targeted at the millennial generation looking to invest. They all have small minimums to invest and take the confusion out of investing. In fact, the three apps that I am going to tell you about today all have minimums of $5 or less.

Take a look at the 3 Apps below that allow you to invest with $5 or less to find one that will work well for you.

ACORNS

Start Investing With $5 or Less
Start Investing With $5 or Less

Acorns truly makes investing possible for anyone! With Acorns, you link your checking account or savings account to the app and it automatically rounds up and invests your spare change. Yes, you read that right. They round up your spare change. Therefore, if you are buying gas for your vehicle and the total is 23.01, they take the additional 0.99 out of your bank account and into your investment about with Acorns.

Making investments by rounding up your spare change isn’t the only way you can invest with Acorns. In addition, you can set an automatic investment for as little as $5 on a recurring basis. For example, you can invest $50 every month or even $10 every week. The app is super flexible with the dollar amount you choose to invest as well as the frequency.

Acorns invests in 5 different ETF’s (exchange-traded funds). An exchange-traded fund is a mix of stocks and bonds similar to a mutual fund. The main difference is that ETF’s trade throughout the day like a stock (i.e. the price per share can fluctuate throughout the day).

Acorns offers 5 different ETFs for you to invest in. Don’t worry if you aren’t familiar with ETFs. They help you choose the best option for your situation – specifically for your time horizon and your financial situation. The 6 different ETFs that Acorns offers are:

  • Conservative
  • Moderately Conservative
  • Moderate
  • Moderately Aggressive
  • Aggressive

The major benefits of Acorns includes the fact that there is not a minimum balance requirement and there are low fees.  In addition, the account fees are $1 per month for balances under $5000 and 0.25% annually for balances over $5000.

STOCKPILE

Start Investing With $5 or Less
Start Investing With $5 or Less

Stockpile allows you to invest in individual stocks with $5 or less! Yes, you can invest in individual stocks (or fractions of stocks) with the amount you might spend on a trip to Starbucks. In addition to investing in stocks, you can also invest in ETFs (or exchange-traded funds).

There are no monthly fees are minimums with Stockpile. However, there is a 0.99 cents fee per trade you make. Before you decide that Stockpile is not for you due to the fee, 0.99 cents is WAY less than many of the other stockbroker options out there. For example, Charles Schwab’s platform will run you about $4.95 per trade.

Like the other apps listed, Stockpile makes investing easy for anyone even kids and teens!

One of the best parts about Stockpile is that they also have gift cards. So instead of cash or another gift, for the next special occasion give a Stockpile gift card and the receipt can use it to buy whatever stock they want! I love this idea for baby showers especially as well as children’s Christmas/birthday presents.However, all of the popular companies are available like Amazon, Facebook, Tesla, and Apple to name a few.

STASH

Start Investing With $5 or Less
Start Investing With $5 or Less

Stash is an app that makes it easy to invest based on your interests, beliefs, and goals starting with as little as $5.  With Stash, you can link your bank account to make regular reoccurring deposits.  In addition, you can also make one-time deposits when you are looking to invest.  Stash is only an application so to get started you do need a smartphone.

Similarly to Acorns, Stash is invested in ETFs (or exchange-traded funds).  Exchange traded funds are a mix of stocks and bonds similar to a mutual fund; however, the price per share changes throughout the day like a stock.

The biggest difference between Acorns and Stash is what you are actually investing in.  During the setup process, Stash asks questions regarding your interests, beliefs, and goals.  Through the questionnaire, Stash helps you to invest in what is most important to you.  There are about 30 investments to choose from; however, they are regularly adding additional options.

A few of the investing options with Stash include:

  • Clean & Green: Invest in companies producing solar, wind, and other forms of renewable energy.
  • Do the Right Thing: Invest in socially responsible businesses that make positive impacts on the world.
  • Young Money: Invest in companies that could benefit from the spending power of millennials.

In addition, after you have used the app for a while they will give you suggestions based on other users.  For example, if a lot of users that are invested in Clean & Green also like Do the Right Thing, they will let you know so you can do some research for yourself.

Similarly to Acorns, the major benefits of Stash is a low minimum balance requirement and low fees.  With Stash, the account balance minimum is $5.  The account fees are $1 per month for balances under $5000 and 0.25% annually for balances over $5000.

Would you like to read our previous article? Hidden Costs of Investing

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