How to Start Investing With Small Amounts in Australia (From $100)

One of the most persistent myths about investing is that you need a lot of money to start. In 2025, Australians can begin investing with as little as $5–$100, access institutional-quality diversification, and pay minimal fees. Starting small and starting early is far better than waiting until you have the "right" amount.

Why Starting Early Matters So Much

Compound returns are one of the most powerful forces in personal finance. $1,000 invested at age 25 at 8% annual return grows to approximately $21,700 by age 65. The same $1,000 invested at age 35 grows to only $10,600. Waiting 10 years halves the result — which is why starting now, even with a small amount, beats waiting until you have more.

Option 1: ETFs via a Brokerage (From ~$500)

Exchange-traded funds (ETFs) are the gold standard for low-cost, diversified investing. An ETF is a single investment that holds hundreds or thousands of underlying shares. When you buy one unit of the Vanguard Australian Shares Index ETF (ASX: VAS), you own a tiny slice of 300 of Australia's largest companies.

Best ETFs for beginner Australians:

• VAS (Vanguard Australian Shares): Tracks ASX 300. Low cost (0.07% p.a. management fee). Good dividend yield.
• VGS (Vanguard International Shares): Tracks global developed markets. Diversifies beyond Australia.
• DHHF (BetaShares Diversified All Growth ETF): A single ETF holding global shares. Excellent for beginners who want one simple holding.

To buy ETFs, you need a brokerage account. Stake offers commission-free US share trading and access to ASX shares, with a clean, beginner-friendly interface. It's one of the most cost-effective options for Australian investors, particularly for US-listed ETFs.

Option 2: Micro-Investing Apps (From $5)

Micro-investing apps allow you to invest very small amounts automatically, often by rounding up your everyday purchases.

• Raiz: Australia's leading micro-investing app. Round up your everyday purchases and the difference is automatically invested in a diversified ETF portfolio. You can also set up recurring deposits. Low fee of $3.50/month (under $15,000 balance) or 0.275% p.a. for larger balances.
• CommSec Pocket: CBA's micro-investing product. Invest from $50 in themed ETF portfolios. $2 brokerage per transaction. Simple and trustworthy for CommBank customers.

Option 3: Superannuation (Best Long-Term Return)

For Australians under 65, superannuation offers tax advantages that no other investment vehicle can match. Contributions from pre-tax income (salary sacrifice) are taxed at 15% rather than your marginal rate — for someone on $80,000, that's a tax saving of 19% on every dollar contributed. The compulsory employer contribution is 11.5% in 2024–25.

If you're not thinking about your super, you should be. Switching from a high-fee retail fund to a low-fee industry fund like Australian Super, REST, or Hostplus can add $50,000–$150,000 to your retirement balance over a 30-year period.

Option 4: CoinSpot for Crypto Exposure (High Risk)

For Australians who want some exposure to cryptocurrency as part of a diversified portfolio, CoinSpot is Australia's largest and most established crypto exchange. It's AUSTRAC-registered, Australian-owned, and offers access to over 400 coins.

Important caveat: cryptocurrency is highly volatile and speculative. No financial adviser would recommend more than 5–10% of a portfolio in crypto, if any. Only invest what you can afford to lose entirely.

The Simple Starting Portfolio

For most Australians starting out, this is a sensible beginning:

1. Emergency fund first: 3–6 months of expenses in a high-interest savings account (see our savings account guide). Don't invest money you might need in the next 2–3 years.
2. Start with $50–$500/month into a simple ETF: DHHF or a combination of VAS + VGS covers Australian and global shares in one simple, low-cost setup.
3. Automate it: Set up an automatic transfer on payday. "Pay yourself first" — invest before spending, not with whatever is left over.
4. Don't check it daily: Short-term market movements are noise. Look at your balance quarterly, not daily.

Tax Considerations

Investment returns in Australia are taxed as income (dividends) or capital gains (when you sell at a profit). Key points:

• Dividends from Australian shares often carry franking credits, reducing or eliminating the tax owed
• Assets held for over 12 months qualify for the 50% CGT discount
• Keep records of every purchase (date, price, number of units) — you'll need this at tax time

For personalised tax advice on your investments, consult a registered tax agent or financial adviser.