How to invest 100 pounds per month?
Investing with 100 pounds is definitely possible! In this article, we show how you can still achieve returns on the stock market by investing 100 pounds per month wisely.
If you have enough time, you can still achieve a good return through compounding interest. If you invest 100 pounds per month for 30 years at an average return of 8%, you will end up with over £135,000!
What can you invest in with £100?
You can invest in various investment products with 100 pounds:
- Stocks
- Crypto
- ETFs
- Day trading
In this part of the article, we briefly discuss how you can invest in these investment products with £100.
Invest 100 pounds in stocks
It is certainly possible to invest in stocks with 100 pounds. It is important to choose a broker where you pay low transaction costs. Many banks and brokers charge fixed transaction fees.
For example, if you pay at least £2 per order, your costs will quickly amount to 2%! This makes it very difficult to achieve a solid return on your investment. With 100 pounds, it may also be interesting to choose a broker where you can invest in fractional shares: you then buy a part of a share, which allows you to apply some diversification.
In the table below, you can see which brokers allow you to buy stocks inexpensively, even with a small amount of 100 pounds:
| Brokers | Benefits | Register |
|---|---|---|
 | Buy without commissions. Your capital is at risk. Other fees may apply. | |
 | Speculate with CFD's on increasing & decreasing prices of ! 80% of retail CFD accounts lose money. | |
 | Benefit from low fees, an innovative platform & high security! | |
 | Speculate on price increases and decreases of with a free demo! |
Invest £100 in crypto
Crypto investments are more popular than ever. It is certainly possible to invest in crypto with a monthly amount of 100 pounds. By entering at fixed times, you achieve an average return on your crypto investment.
You can buy crypto with one of these reliable crypto exchanges:
| Brokers | Information | Register |
|---|---|---|
 | Speculate in popular crypto products with eToro! Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more | |
 | Speculate on increasing & decreasing crypto prices with the CFD provider Plus500 using a demo account. 80% of retail CFD accounts lose money. |
Invest £100 in ETFs
If you want to apply maximum diversification with a monthly investment of 100, ETFs are very appealing. With an ETF, you can track a complete index with a small amount of money. This allows you to invest in thousands of different stocks at once with £100.
Do you want to learn more about investing in ETFs? Then read our special on the subject and get started:
Day trading with 100 pounds
You can choose to actively trade in the price movements of a stock. You can then speculate on both price increases and price decreases. Moreover, with an amount of 100 pounds, you can take a larger position: you can then trade 500 pounds worth of shares. Read more about day trading here.
Did you know that you can try out active stock trading for free and without risk? With eToro, you can test the trading of CFD stocks with a demo. When you are ready, you can deposit 100 pounds and get started right away. Use the button below to open an account with eToro:
How much return can you achieve with £100 per month?
Many people think that it is not worth investing with 100 pounds. However, nothing could be further from the truth: it is precisely because of the effect of compounding interest that you can achieve good results with a monthly investment of 100 pounds.
Are you curious how your investment can grow? Test it with the tool below:
On average, the yield on the stock market was around 8% over the past 100 years. Past performance is of course no guarantee for the future. However, the stock market has always produced the best results in the past period. You can read more about the average return on investments in this article.
What is the best method for investing with £100?
There is no single optimal investment strategy when you want to invest 100 pounds per month. Therefore, it is important to first consider how much money you can afford to lose and what risk you are willing to take.
A popular strategy for 100 pound investments is dollar cost averaging. You then invest a fixed amount monthly in, for example, an ETF which allows you to achieve an average return.
Dollar cost averaging on an ETF is attractive because you can still apply a solid level of diversification. This is usually difficult when buying individual stocks with 100 pounds.
How much can you earn with £100?
In the short term, you will not make a lot of money with an amount of 100 pounds on the stock market. If you achieve a return of 1%, this is equivalent to a profit of £1. However, in most cases, investing is done for the long term. In the table below, you can see what return you would achieve if you invest£100 monthly at an average return of 8%.
| Year | Capital |
|---|---|
| 5 | £7.347 |
| 10 | £18.294 |
| 20 | £58.902 |
| 30 | £149.035 |
| 40 | £349.100 |
| 50 | £739.172 |
Furthermore, remember that the stock market regularly drops sharply, which means your return can be volatile. Therefore, only invest money that you can really miss.
Frequently asked questions
Even if you have a small budget to invest, it can be worth it. If you have a lot of time, you can achieve a high return with a small amount of money because you also receive a return on your achieved return every year. If you start investing early, you usually have to invest less to achieve your investment goal.
Regardless of the amount you invest, it is possible to make a profit with 100 pound investments. At the same time, you can also lose, of course: the stock market does not guarantee anything, and past performance is no guarantee for the future. It is advisable to choose an affordable broker. High transaction fees make your deposit evaporate, especially when you invest a small amount.
Of course, you cannot buy a house for 100 pounds. However, it is possible to invest in real estate with a small amount of 100 pounds. For example, you can deposit 100 pounds monthly into a real estate fund. This fund collects all the money from all the investors and then buys apartments with it. This allows you to benefit indirectly from the returns on real estate.
It is certainly possible to become a millionaire with an investment of 100 pounds, but you need a lot of luck for this. For example, I know someone who invested 100 poundsin the cryptocurrency Safemoon. The currency then rose enormously in value, which lead to his investment rasing the value of <>1,000,000. At the same time, of course, there are millions of stories of people who have lost <>100 with these types of risky investments, but you don’t read about them on the internet. If you want to gamble, the lottery is also a good option.
Auteur
Over Alex Mostert
When I was 16, I secretly bought my first stock. Since that ‘proud moment’ I have been managing trading.info for over 10 years. It is my goal to educate people about financial freedom. After my studies business administration and psychology, I decided to put all my time in developing this website. Since I love to travel, I work from all over the world. Click here to read more about trading.info! Don’t hesitate to leave a comment under this article.
