Can I Invest with just $100 in the Stock Market?

” I am interested in investing in the stock market but I don’t know how, where to start, and I don’t have enough funds.”

“I don’t like to invest in the stock market as it is too risky!”

These are few of the comments that I have always heard from family, friends, and co-workers. We need to remember that everything we do in life has some degree of risks such as driving to work or even just going out for a walk. It is same with investing. Understandably, investing in the stock market involves far greater risk. In fact, you can lose some or all of your money if you don’t know what you are doing.

How to minimize the risks that come with investing in the stock market?

  • Self Education. Educating yourself is the key to improving our success in any investment that we are going to be involved with. This can be achieved by reading books about investment, watching YouTube videos, and listening to podcasts about stock market investing.
  • Joining financial forums and blogs: Another excellent way to learn about investing is to participate, comment, and ask questions in forums and subscribe to financial blogs.
  • Invest only funds that you can afford to leave for a long term preferably 5 years and beyond. Otherwise, if you need to withdraw within 6 months or a year, you are better-off leaving your money in HISA or GIC.
  • Invest in dividend paying stocks. My primary goal of investing in the stock market is to develop a passive source of income through dividend stocks. (Personally, I don’t day trade and buy speculative stocks.)
  • Buy blue chip companies. As a new investor, I suggest partnering in companies that you like and understand such as household name banks or big chain grocery stores.
  • Self-directed or DIY investors beware. Once you have a better understanding of how investing in the stock market works – there is nothing wrong with doing it yourself. You will likely achieve a better return of your investments as you will eliminate the fund advisor fees such MER, account maintenance fees, and any other hidden fees.
  • Choosing the right broker. Maximizing the return of your investments is also achieved by picking a broker with minimal fees and possibly with No minimum balance requirement.
  • Exercise due diligence. Finally, one of the most important aspects with investing is comprehensive appraisal of any company you are partnering and monitoring their financial reports as time goes by.

I think I am ready to invest but don’t have enough funds. Can I start investing with $100 only?

Absolutely. Traditional banks and brokerages require a minimum deposit of $1,000 and above. Online brokers are now highly competitive these days. Zero commission brokerages such as Robinhood started in 2015 in the US. Big banks and traditional brokers followed in 2019.

With advancement of technology many seasoned and young investors alike are attracted to brokers who offer No Commission trade and No minimum balance requirement services as an app in smartphones. Wealthsimple Trade was finally been launched in Canada in March 2019.

Personally, I have an account with WS Trade. The app is very basic and has many limitations compared to big known brokerage. However, I don’t find it a major concern as I do my research on other financial websites such as Google or Yahoo finance. In other words, it meets my minimum requirement as a dividend investor. No fees to buy/sell stocks and No fees to reinvest my dividends.

Quick steps to open an account with Wealthsimple Trade:

  • Download WS Trade from Apple or Google play store.
  • Register and create an account with WS Trade.
  • Link your bank account from WS Trade App.
  • Fund your account. Initial funding takes 3-4 days.
  • Once funds are available in your WS Trade you can start to buy your own first stock.

Sharing screenshots of some of my transactions with WS Trade. 

 

Showing a summary portfolio’s performance of the day.

You can create your own watchlists of potential companies!

 

Showing Zero commission trade transaction.

A screenshot of dividends paid to the account.

 

My Final Thoughts

Starting to invest with minimal funds is no longer a problem for new investors. Additionally, you can begin to invest as little as $100 and buy a single share of a company.

Finally, seasoned investors and young investors alike are now able to reduce cost with the introduction of Zero commission trade with No minimum balance requirement of their accounts.

 

Disclaimer: I am in No way affiliated to any of the companies mentioned above. I am however a client of WS Trade and have shared my personal experiences with the application. The content of my blog is for entertainment and/or informational purposes only and should not be seen as any kind of advice.

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