How much money do you need to start investing?

The short answer: less than you think

How much money do you need to start investing? For most people in Europe today, the honest answer is: less than the cost of a dinner out. Many online brokers and investing apps have low or no minimum deposits, and many let you set up a monthly plan into ETFs (exchange-traded funds, which hold many companies in one investment).

That wasn't always true. Buying shares used to mean paying a broker a fixed fee that made small purchases pointless, and a single share in some companies costs hundreds of euros. Two changes have opened the door:

• Lower fees. Many online brokers now charge little or nothing per trade for some products, though they may earn money in other ways, such as currency conversion.
• Fractions. Some providers let you buy part of a share or ETF, so a €20 order can buy a slice of something priced at €400.

The real question isn't "how much do I need?" but "is my money ready, and will the fees eat it?"

What to sort out before you start

Investing isn't the first step. It's the third.

1. A cash emergency fund. Three to six months of essential costs is a common guide. Our emergency fund calculator helps you find your number.
2. No expensive debt. Paying off a credit card at 15–20% is a guaranteed saving no investment reliably beats.
3. A time horizon of five years or more. ESMA advises against locking money into a long-term investment if you may need it early.

Then work out what you can invest each month without strain. The 50/30/20 rule is a simple way to find it: the 20% part covers saving, investing and extra debt payments.

How fractions and low minimums work

When a provider offers fractions, you choose an amount in euros rather than a number of shares. If an ETF costs €100 per unit and you invest €25, you get a quarter of a unit.

There are two very different ways a provider can do this, and it matters:

ESMA, the EU's markets regulator, issued a statement in March 2023 about the second type. It said derivatives on fractions of shares are not corporate shares, that firms should not call them "fractional shares", and that they carry extra risks such as counterparty risk (the provider failing to pay) and liquidity risk. They normally don't come with voting rights. So read the product information before you buy, and check what you'll actually own.

Fees on small amounts: the worked example

Fees come as either a fixed amount per trade or a percentage. A fixed fee is easy to ignore, but on small purchases it's often the biggest cost you pay.

To put that in context: a broad index ETF might charge 0.2% a year in fund fees. On €600, that's €1.20 a year. The €12 in trading fees would cost ten times as much.

If your broker charges a fixed fee, one fix is to invest less often. Putting in €150 every three months instead of €50 a month means four fees of €1 a year, or about 0.67% of €600, instead of 2%. The trade-off is that your money sits in cash a little longer between purchases.

Why small amounts are still worth it

Starting small isn't about the money you put in this year. It's about time and habit.

• Time does the heavy lifting. Compound growth means returns start earning returns of their own, and the number of years you give it matters more than the starting amount.
• You learn while the stakes are low. Your first market fall is easier to sit through with €300 invested than with €30,000.
• Regular amounts smooth your entry. Investing a fixed amount each month is called dollar-cost averaging (or euro-cost averaging). Our guide to dollar-cost averaging explains how it works.

A simple way to pick your starting amount

If you're unsure what number to choose, work backwards from your budget rather than from the market:

1. Start with what's left. After essentials, debt payments and topping up your emergency fund, what could you set aside every month without feeling it? That's your amount, even if it's €25.
2. Check the fee as a percentage. Divide any fixed trading fee by your monthly amount. If the result is more than about 0.5%, consider investing every two or three months instead.
3. Automate it. Schedule the transfer for payday so the money moves before you can spend it.
4. Raise it when your income rises. A pay rise or a paid-off loan is a natural moment to add a little more.

The number you start with matters far less than starting at all, and keeping going.

Common mistakes

• Waiting until you have a "proper" amount. Many people wait years for a lump sum that never arrives.
• Paying percentage-heavy fees without noticing. A €1 fee feels tiny until you see it is 2% of a €50 order.
• Investing the emergency fund. It needs to be in cash, ready to use.
• Buying single shares because they're "cheap". A low share price doesn't mean a company is good value. Fractions make expensive shares affordable, but one company is still one bet.
• Choosing a provider for its sign-up bonus. Compare the ongoing costs and how your money is protected. Our comparison of investing apps in Europe sets out honest pros and cons.

For the full path from first euro to long-term plan, read our investing for beginners guide.