By Paul Feeney, Founder and Chief Executive Officer, Otivo
The idea that investing is for people with a spare fortune is one of the more stubborn myths in personal finance, and one of the most expensive, because it keeps people on the sidelines for years. The real entry point is far lower than most assume. For the price of a modest night out, you can own a slice of an entire market. Here's what it actually takes to start.
Quick answer
You can start investing with a surprisingly small amount. Many brokers let you buy ETFs or shares with a minimum of around $500, and some micro-investing apps start from just a few dollars. As at July 2026, the bigger factors than the starting sum are keeping brokerage costs low relative to what you invest and contributing regularly over time.
How much do you really need to start?
Less than most people think. A common minimum for a single trade through a broker sits around $500, and micro-investing platforms have pushed the entry point down to a few dollars by pooling small amounts. The practical floor, in other words, is low enough that the starting sum is rarely the real barrier. What holds people back is more often the belief that they need a large amount to bother, which simply isn't true.
Why does the starting amount matter less than you think?
Because investing is a long game, and consistency beats size. A modest amount invested regularly over many years, with returns compounding on top of returns, can outgrow a larger one-off sum invested once and left alone. The habit of contributing steadily is what builds wealth, not the size of the first deposit. Starting small and staying consistent puts time, the most valuable ingredient, on your side from the beginning.
How do brokerage costs affect small investments?
This is the one catch worth understanding. Many brokers charge a fixed fee per trade, so a $10 fee on a $100 investment is a hefty 10% before you've earned a cent, while the same fee on a $1,000 investment is a far more reasonable 1%. When you're starting small, keeping brokerage costs proportionate matters, which is why very frequent tiny trades can be inefficient. Investing in slightly larger, less frequent parcels can keep those costs in check.
What's more important than the starting sum?
Three things carry more weight than how much you begin with. Contributing regularly matters most, since it builds both the habit and the balance. Keeping costs low, both brokerage and ongoing fees, leaves more of your money working. And time in the market lets compounding do its quiet work. Get those three right and a small start grows into something meaningful, get them wrong and a large start can stall.
How do people build from a small start?
The usual path is to invest a set amount on a regular schedule, regardless of what markets are doing, an approach often called dollar-cost averaging. Investing the same amount each month means you buy more units when prices are low and fewer when they're high, smoothing out the entry point over time. It removes the pressure of trying to pick the perfect moment, which is a game few win, and it turns investing into a steady habit rather than a series of nervous decisions.
Frequently asked questions
Can I start investing with $500?
Often yes. A common brokerage minimum for a single trade sits around $500, and micro-investing platforms let you start with far less. The starting sum is rarely the real barrier to beginning.
Is it worth investing small amounts?
Yes, particularly when done regularly over time, since consistency and compounding matter more than the size of any single contribution. The main thing to watch is keeping brokerage costs proportionate to small amounts.
How much should I invest to begin?
Whatever you can consistently afford after covering essentials, high-interest debt and an emergency buffer. Building on a stable foundation matters more than the exact figure you start with.
Where to from here
Before the investing question comes the foundation, and getting there is often about clearing the ground first. Otivo, a licensed Australian financial advice platform holding AFSL and Australian Credit Licence No. 485665, offers a debt advice module that helps you find effective ways to pay down debt while covering essentials, based on your debts, income and expenses. It's a practical step towards being ready to invest.
Sources
- ASIC MoneySmart — how to start investing and brokerage costs — moneysmart.gov.au
- Australian Securities Exchange — getting started with investing — asx.com.au
Disclaimer
The information in this communication is current as at July 2026 and has been prepared by Otivo Pty Ltd ABN 47 602 457 732, AFSL and Australian Credit Licence No. 485665. This content is general information only and has been prepared without taking into account your objectives, financial situation or needs. It is not personal financial or taxation advice and should not be relied on as such. Before acting on any information, you should consider its appropriateness having regard to your personal circumstances. This material must not be reproduced in whole or in part, or posted on any social media platform, without the prior written consent of Otivo Pty Ltd.