Začínáme s investováním
Can I Start Investing with 100 or 500 CZK?
Key takeaways
- Starting with a small amount is better than not starting at all — every additional day, compound interest works for you.
- Some brokers allow you to buy a fraction of an ETF for any amount, even 200 CZK.
- With brokers that charge a transaction fee, small amounts don't pay off — the fee would eat up a large portion of the return.
- A beginner's investment of 500 CZK per month can grow into an interesting sum over 30 years (at the average market return) thanks to compound interest.
Yes, you can start investing with 100 or 500 CZK — it mainly depends on your choice of broker and the fees.
Why fees matter
A broker's transaction fee can be fixed (say 1 euro or 2 dollars per purchase). If you invest 200 CZK and pay a 25 CZK fee, you lose 12 % right at the start. That's too much. So for small amounts, look for brokers with a zero or very low ETF purchase fee. Check current fee schedules.
Fractional shares: small amounts without compromise
One ETF might cost, for example, 90 euros. If you don't have the full amount, some brokers let you buy a fraction — say for 10 euros. You get a proportional share of the ETF and participate in the return equally. This feature is called fractional shares. Not every broker offers it — check current terms.
Where to find money to invest
The simplest method is to set aside a fixed amount right when you get paid — say 300 or 500 CZK — before you spend it. This is called the "pay yourself first" principle. For more on regular investing read how to set up regular investing.
How much do you actually need
For your first whole ETF share you need the price of one share in euros + purchase fee + currency conversion fee (CZK to EUR). For cheaper ETFs this can be 20–100 euros. More on conversion in the article how to send money to your broker without losing on conversion.
FAQ
Does it make sense to invest 100 CZK per month when the return will be minimal?
It does make sense: you learn the process, build discipline, and compound interest starts working. At the same time, 100 CZK per month over 30 years at an average return of 7 % per year genuinely grows. The key is to start, not to wait for the "right" amount.
What if the ETF price drops right after my first purchase?
That can and will happen. A drop right at the start is unpleasant but normal for a long-term investor. Next month you buy cheaper — and your average purchase price becomes more favorable. Panic-selling would be the only real problem.
Should I have savings set aside first, or can I start investing straight away?
It is recommended to first have an emergency reserve covering 3–6 months of expenses in the bank. Only invest surplus funds. Why? Investments can temporarily fall, and if you urgently needed to withdraw the money, you'd be selling at a loss.