In the old days, you had to hire a broker to manage investments. You paid them a fee or a percentage of your portfolio and they did all the buying and selling for you. And you only bought and sold whole shares of stocks. If the share was $100 and you only had $99, you didn’t get to buy it.
Investing is much more accessible today. All you need is a small investment and a secure Wi-Fi connection. Robo-advisors emerged as a response to the high fees and transaction costs of traditional investing. Research showed that the heavily managed, high-priced investments were often not as efficient as a well-balanced portfolio that you just “set and forget.”Robo-advisors use algorithms to automatically rebalance portfolios. They typically invest in low-cost funds that track an index, meaning they aim to keep pace with a certain marker, such as the Standard & Poor’s (S&P) 500.
If you use a robo-advisor, you can start small and build at your own pace. Once your investments reach the $100,000 range, you’re probably better off working with a traditional brokerage or financial planner.
Microinvesting allows you to invest tiny amounts of money to purchase fractional shares. So, rather than having to come up with more than $100 to buy a share of Apple stock, you can buy a $5 fractional piece of a share. And you don’t have to buy even amounts. Some sites will round your purchases up to the nearest dollar and literally invest your change.
DO IT FOR REAL