Investing might sound like something reserved for people with stacks of cash and a deep understanding of Wall Street, but that’s no longer the case. Thanks to micro-investing platforms, just about anyone with a smartphone and a few spare dollars can dip their toes into the world of investing.
Micro-investing is exactly what it sounds like—investing small amounts of money, often as little as a few cents or dollars, into stocks, ETFs (exchange-traded funds), or other assets. These platforms break down traditional financial barriers and make investing accessible to people who may have never considered it before.
In this article, we’ll take a deep dive into what micro-investing is, explore the most popular platforms, weigh the pros and cons, and answer some common questions. By the end, you’ll have a much clearer idea of whether this investing method is right for you.
Top Micro-Investing Platforms in 2025
There are plenty of micro-investing platforms out there, each with its own features, fee structures, and investment options. Here’s a closer look at some of the most well-known platforms in 2025:
| Platform | Minimum Investment | Fees | Key Features | Best For |
| Acorns | $5 | $3–$5/month | Round-ups, retirement accounts, educational tools | Beginners who want automation |
| Stash | $1 | $3–$9/month | Stock-back card, personal finance tools | Investors who want more control |
| Robinhood | $1 | $0 (basic) | Commission-free trading, crypto, options | DIY investors with some experience |
| Public | $1 | $0 (some premium tiers available) | Social investing, crypto support | Community-focused investors |
| SoFi Invest | $1 | $0 (managed) | Free financial planning, access to IPOs | New investors seeking guidance |
| Betterment | $10 | 0.25%–0.40% annually | Robo-advising, goal setting, automatic rebalancing | Hands-off long-term investors |
| M1 Finance | $100 | $0 (basic) | Customizable portfolios (“pies”), automation | Long-term investors with specific goals |
Each of these platforms allows you to start small, but the way they help you manage and grow your money differs. Some lean heavily on automation and robo-advising, while others give you more control over what you invest in. Think about your financial goals, how involved you want to be, and what kinds of tools you’d find helpful as you start your investing journey.
Key Benefits and Drawbacks of Micro-Investing
Getting started with micro-investing seems like a no-brainer for many people. But like anything in finance, it’s not all sunshine and rainbows. Let’s go over the key benefits and some of the potential drawbacks to help you decide if micro-investing is right for you.
Benefits
- Low Barrier to Entry
You don’t need thousands—or even hundreds—of dollars to begin. - Automated Saving Tools
Apps like Acorns round up your everyday purchases and invest the spare change. It’s a painless way to build an investment habit without even noticing. - Fractional Shares
Want to own part of a share of Amazon or Tesla? Micro-investing platforms let you buy a slice of high-priced stocks, so you’re not left out. - Financial Education
Many apps provide easy-to-understand resources that help you learn as you go, making them great for financial newbies. - Goal-Oriented Investing
You can set up different accounts or “goals” within many platforms, whether it’s saving for a home, a car, or early retirement. - Accessibility
All you need is a phone and a bank account. You don’t have to be an expert or have a personal financial advisor.
Drawbacks
- Fees Can Eat Into Small Investments
Paying a $3 monthly fee doesn’t sound like much—until you realize it’s 6% of a $50 investment. - Limited Investment Options
Some platforms limit your choices to a curated set of ETFs or portfolios, which might be too restrictive for some. - Not a Substitute for Retirement Accounts
Micro-investing is a great start, but it’s not a replacement for full-fledged retirement planning through IRAs or 401(k)s. - Overreliance on Automation
Automation is convenient, but it might leave you unaware of what’s actually happening with your money. - Risk of Complacency
Investing a few dollars here and there is helpful, but it won’t build substantial wealth unless you increase your contributions over time.
Micro-investing isn’t meant to replace a full-scale investment strategy. It’s a stepping stone—a great way to build confidence and financial literacy, especially for those who are just starting to manage their money intentionally.
FAQs
What is micro-investing, exactly?
Micro-investing involves putting small amounts of money into the market, often automatically. It’s designed to help people begin investing even if they can’t afford to put away large sums all at once. Most micro-investing platforms allow for fractional share investing, meaning you can own part of a share of stock instead of having to buy a whole share.
Is micro-investing safe?
Like any investment, there’s risk involved. The value of your investments can go up or down. That said, micro-investing platforms are typically regulated and use secure technology to protect your money and personal information. The key is to make informed decisions and understand the risks before diving in.
Can I make real money from micro-investing?
Yes—but slowly. Micro-investing is a long game. You won’t get rich overnight, and if you’re only investing your spare change, it will take a while to build up. But with consistent contributions and compound growth over time, it’s definitely possible to build wealth.
What’s the difference between micro-investing and regular investing?
The biggest difference is the amount of money involved. Traditional investing might require a minimum deposit of hundreds or thousands of dollars. Micro-investing lets you get started with just a few dollars. The investment options might be more limited on micro-investing apps, but the core principles—diversification, long-term growth, and risk management—still apply.
Which micro-investing app is best for beginners?
That depends on your goals. Acorns is great if you want to be totally hands-off. Stash offers more control and educational resources. Robinhood is good for those who want to actively pick stocks, while Betterment provides guided investing through robo-advisors. There’s no one-size-fits-all answer, so it’s worth trying out a couple (most have free trials) to see which one feels right.
Do I need a lot of financial knowledge to start?
Not at all. In fact, that’s one of the best things about micro-investing platforms—they’re built for beginners. Many of them include in-app guidance, explanations of financial terms, and even personalized suggestions based on your goals.
What kind of returns should I expect?
It varies, just like with any other type of investing. If you’re investing in the stock market through ETFs or individual stocks, your returns will depend on market performance. Historically, the stock market has returned an average of 7–10% annually over the long term, but that’s not guaranteed year to year.
Can I withdraw my money anytime?
Usually, yes. Most micro-investing platforms allow you to withdraw your funds whenever you want, though it may take a few business days to process. Just be aware that if the value of your investments has dropped, you might get back less than you put in.
Conclusion
Micro-investing platforms have flipped the script on traditional investing. They make it possible for anyone—regardless of income, education level, or financial background—to start building wealth. Whether you’re saving for a rainy day or just want to see what the investing world is all about, these platforms offer a low-stakes way to get in the game.
While micro-investing shouldn’t be your only financial strategy, it’s a powerful tool to help you develop better money habits, understand the market, and create momentum toward your bigger financial goals. Think of it as your financial training wheels—it’s not about how much you’re investing now, but the habit and mindset you’re building for the future.
If you’ve been hesitant to start investing because it felt too complicated or expensive, micro-investing might be just the nudge you need. And who knows? That spare change could be the seed of something much bigger down the line.