Investing for the Absolute Beginner: How to Start with Just $10 (or Less!) in 2025

Rakesh Rajbhat 16 May 2025

The world of investing can seem intimidating, conjuring images of Wall Street traders and requiring vast sums of money. This perception leads many to believe they can't start investing until they have thousands of dollars saved up. But in 2025, that couldn't be further from the truth. Thanks to advancements in financial technology, you absolutely can start investing with just $10, or even less!

Breaking down the barrier of entry to investing is easier than ever. This guide is for the absolute beginner, designed to demystify the process and show you how to put your first few dollars to work towards building long-term wealth.

Demystifying the Jargon: Micro-Investing, Fractional Shares, and Robo-Advisors

Forget needing enough money to buy a whole share of a high-priced stock. Several innovations make investing small amounts possible:

• Micro-Investing: This is exactly what it sounds like – investing very small amounts of money regularly. Think of it like saving spare change, but instead of a piggy bank, it goes into investments. Many apps facilitate this by allowing you to round up everyday purchases and invest the difference.
• Fractional Shares: Traditionally, you had to buy a whole share of stock. If a share cost $1000 and you only had $100, you couldn't invest in that company. Fractional shares allow you to buy portions of a stock or ETF. With fractional shares, your $10 can buy 0.01 shares of that $1000 stock, or $10 worth of it, allowing you to own a piece of high-value companies.
• Robo-Advisors: These are digital platforms that use algorithms to automatically manage your investments based on your financial goals and risk tolerance.1 Many robo-advisors have low or no account minimums and can invest your small contributions into diversified portfolios of low-cost ETFs, taking the guesswork out of asset allocation for beginners.   

Platforms That Let You Start Small in 2025

Several reputable brokerage firms and apps now cater specifically to the micro-investor and offer fractional shares, often with very low or no account minimums. As of 2025, popular options include:

• Traditional Brokers (with modern apps): Fidelity, Charles Schwab, and J.P. Morgan Self-Directed Investing are well-established firms that now offer fractional share trading with no or very low minimums, providing access to a wide range of investments and robust research tools.
• Mobile-First Apps: Robinhood, SoFi Invest, Webull, and Public gained popularity for their user-friendly mobile interfaces and commission-free trading, including fractional shares. SoFi Invest, for instance, allows investing with as little as $50 and buys fractional shares immediately.
• Micro-Investing Specific Apps: Acorns is a prime example, focusing on rounding up purchases to invest spare change. While some of these apps may have small monthly fees, they are designed for the absolute beginner focused on consistent micro-contributions.
• Robo-Advisors with Low Minimums: Betterment and Fidelity Go are examples of robo-advisors that allow you to start with little to no money ($10 for Betterment to start investing, $0 for Fidelity Go under $25k) and automatically build a diversified portfolio using ETFs. Wealthfront requires a slightly higher minimum ($500) but is another popular robo-advisor.

When choosing a platform, look for low or no account minimums, access to fractional shares, low fees (expense ratios on ETFs, management fees if using a robo-advisor), and educational resources.

The Astonishing Power of Compounding (Even with Pocket Change)

You might think investing $10 here and there won't make a difference, but that underestimates the power of compounding. Compounding is essentially earning returns on your returns. Even small, regular contributions, given enough time, can grow exponentially.

Imagine investing just $10 consistently each week. That's $520 a year. If it earns an average annual return of 7% (historically, the stock market has averaged around 10% over long periods, but let's be conservative), after 20 years, your total contributions of $10,400 could potentially grow to over $21,000. After 30 years, your $15,600 in contributions could potentially be worth over $40,000! This growth is largely thanks to the power of compounding working its magic over time. The key is consistency and time.

Simple Starting Points: Investing in Broad Market ETFs

For the absolute beginner, trying to pick individual stocks can be risky and requires a lot of research. A simpler and more diversified approach is to invest in broad-market Exchange Traded Funds (ETFs).

An ETF is a type of investment fund that holds a collection of assets, like stocks or bonds, and trades like a single stock on an exchange. Broad market ETFs track a large index, like the S&P 500 (the 500 largest US companies) or the total US stock market. When you buy a share (or a fractional share) of a broad market ETF, you instantly become a tiny owner of hundreds or thousands of different companies, spreading out your risk. Examples include VOO, SPY, IVV (tracking the S&P 500), or VTI (tracking the total US stock market). They typically have very low expense ratios, meaning less of your return is eaten up by fees.

Managing Expectations: Investing is a Long Game

It's crucial to understand that investing involves risk. The value of your investments can go down as well as up. There are no guarantees of returns. However, historically, investing in the stock market has been one of the most effective ways to build wealth over the long term, outpacing inflation.

Start with money you won't need in the next 5-10 years. Don't panic during market downturns; these are often opportunities to buy at lower prices. Focus on consistent contributions and staying invested for the long haul.

Your First Step: Turning Rewards into Investments

Even the small amounts you earn through online activities can be the seed for your investment journey. Platforms like RakeshRajbhat.com, where you can earn rewards (like points in the Baakhapaa Wallet), can provide that initial capital to start your micro-investing. Think of those earned rewards not just as pocket money, but as your very first investment dollars, putting your small earnings to work!

Ready to test your knowledge of these basic investment concepts? Take our quick quiz on essential investment terms to solidify what you've learned!

Starting with $10 or less is not only possible in 2025, it's a smart way to begin building the habit of investing and harness the power of compounding. Don't wait for a large sum; start putting your money to work, no matter how small the amount, today.