When you only start your investing or want to see and compare results from multiple investments, you can start from $100 to make a 1000 a day. But how to invest your money in the most successful way?
Here you will find a wide variety of options bringing returns with almost no funds.
Table of Contents
Key Takeaways
For underfunded investors who want to invest 100 to make 1,000 a day really exist useful tools to increase their money and get as much as 1,000%. But first, immature investors and those who just stepped on the path of investing must pay attention to possible sources of their future income and indicators which will guide them on their way to profit.
The most popular retirement plan is not the only way to get your returns. Certificates of deposit, stocks and bonds, dividends, cryptocurrency, real estate, business and e-commerce, YouTube audience — all these and many more are sources of potential income. And investing with a team of professionals from Beatmarket is one of the possible points to start. Experts and financial advisors from the platform are ready to give personal advice and provide services.
But one of the crucial things to pay attention to while starting the high-yield investments is your risk tolerance. Due to the higher chances to lose your money such investments will suit people who are ready to take more than moderate risks.
Round Up Your Savings: The Modern Way to Accumulate Wealth
What is it
From time to time everyone visits shops and makes purchases, but collecting spare change in a coin box or piggy bank has already gone. Nowadays to round up your savings you can use special apps, which put your spare change into savings account or invest for you.
Risk level
Risk level of the apps is low because you only collect your spare change and get percent on your money.
How it works
You purchase some food in a grocery store or a pair of shoes in a clothing store and get change. If your purchase cost $2.79, then you would get 21 cents in cash. Instead of it, your round up app takes these 21 cents and adds to your savings or investing account every time when you purchase.
How to get started
The easiest way to begin is to download an app or open an account, select your plan and begin rounding up your purchases and growing your money. The apps will definitely change your $100 into $1000.
Who it’s right for
These apps perfectly suit those who prefer making small automatic savings rather than spending hours to choose appropriate investments.
Calculation example
Open a High-Yield Savings Account: Maximizing Your Money’s Potential
What is it
A high-yield savings account is designed not only to save your hard-earned money but also to get high interest on them. Rates in banks are usually higher than an average percent rate in other financial institutions. Moreover, these savings are secure and insured by FDIC.
Risks
For people who would like to have safe investments with low risk a high-yield savings account is a wonderful option.
How it works
A Savings account allows you to deposit/withdraw your money and get percent depending on your fund. To withdraw your earned money, you need only specify an account or use an ATM, but do not forget about fees and the limit of free withdrawals.
How to get started
To invest 100 dollars, the first thing that you must to do is:
- to open a checking account at a bank
- open a high-yield savings account at a bank branch or online
- remember requirements for an account: minimum initial deposit, minimum balance.
Who it’s right for
For those who want higher-than-average rates with low risk high-yield savings accounts are the best choice. However, one of the unpleasant things of a high-yield savings account is a variable annual percentage yield.
Calculation example
While regular accounts may bring 0.43% yearly, high-yield savings accounts will give you 4.50% on your fund.
Retirement Accounts (401k or Roth IRA): Planning for the Golden Years
What is it
There are several types of retirement accounts. To snowball your money one of the best options is a Roth IRA that uses after-tax dollars and saves your money from taxes. 401k is another option to save your money to retirement age. With a traditional 401(k), contributions to your account are deducted from gross income. In Roth IRAs your money will be managed by a broker that invests on your behalf. In 401(k) accounts may choose investments from a set offered by their employer.
Risk level: low to moderate.
Your money is managed by professionals while your GICs (guaranteed investment contracts) are issued by insurance companies.
How it works
- 401k: part of your monthly paycheck will be contributed to your 401k retirement account. Your money will grow tax-deferred with compounding interest.
- Roth IRA: its owners make regular contributions by themselves and invest their funds in a portfolio.
How to get started
To get started with your retirement savings in the most successful way, you can become an account holder and invest $100 in one of the retirement plans.
Who it’s right for
Employee, self-employed individuals as well as business owners equally have rights to create their personal retirement accounts and use all their benefits.
Calculation example
Day Trading: The Fast-Paced World of Stocks
What is it
Day trading implies several buy and sell orders during the day with the same asset. It is a rather speculative way of making money. Day trading involves mostly technical indicators based on numbers and statistics.
When you open your position in the morning and close it in the middle of the day, you perform a day trade. Many active traders use margin to increase their profit and have their own strategies and parameters that govern their decisions.
Risk level: high.
Day traders try to reduce losses and make more money rather than waste them. Professionals set entry and exit price levels before starting trade.
How it works
The two crucial parameters for day trading are liquidity and volatility. Volatility refers to price movements while liquidity refers to speed of your trade (i.e. the quicker you can sell or buy and the less is spread between prices the more liquid the asset is).
How to get started
Choose a type of the instrument that you want to use and according to your choice decide which broker will suit you. After that savvy traders identify the best time of trade. It is well-known that an hour after the open and the last hour before close are most profitable for trade.
Who it’s right for
Day trading is more suitable for people who are ready to devote themselves fully to trade. Or at least, it takes several hours a day and a lot of hours to study how to perform well. In this case it is possible to make 1000 a day from your $100.
Calculation example
Regardless of your fund, master your skills even if you have only $100.
Dividend Stocks: Reaping the Rewards of Company Profits
What is it
Buying shares and investing your $100 to make $1,000 it is great to know that from now on you are not only an owner of the company’s business but you also reap the rewards of company profits in form of dividends.
Risk level
Dividend payments mostly depend on the company performance. They are not guaranteed, terms vary and an amount of payments is changeable. However, in most cases dividend stocks are issued by large companies with a long history that makes investments in them more steady.
How it works
A company gets profit and shares it with shareholders commensurately a number of shares they own. Dividends can be paid monthly, quarterly, or annually and an amount of dividends depends on the fund the company got during a term.
How to get started
If you really want to invest 100 to make 1000 a day as quickly as possible, you can start by opening a brokerage account or investment platform.
What it’s right for
Dividend stocks attract people seeking regular payouts and profit without selling and those who want to have a buffer against market volatility.
Calculation example
Options Trading: Navigating the Right to Buy or Sell
What is It
Option trading involves asset assessment and making assumptions on its price to a certain date in the future. In comparison with stock trading you do not buy any shares you only guess a possible outcome and decide whether you want to press the button sell or buy.
Risk level
Option contracts can be used to hedge risks, however, some traders speculate on price, which may cause a significant risk.
How It Works
Options give you the right to buy or sell stocks and offer four possible contracts: buy a call, sell a call, buy a put, sell a put. However, you are not obliged to buy or sell shares if you have bought a call or a put.
How to get started
In order to get started trading options, you have to choose an option trading platform or brokerage firm.
Who it’s right for
It is hard to estimate option contracts therefore it can be suitable only for experienced investors who want to hedge against price fluctuations. However, higher risks can give you a chance to get higher profit and you will make 1000 a day rapidly.
Calculation example
Since initial share price in options trading is less than equivalent stock costs, your potential cash losses are smaller.
Real Estate Investment Trusts (REITs): Property Without the Hassle
What is It
REITs stands for real estate investment trusts which can be subdivided into equity and mortgage REITs. These are companies that own real estate of different types: apartments, warehouses, self-storage facilities, malls and hotels. All owned property produces income.
How it works
Investing in REITs requires at least $1,000 stipulated by Nareit for individual investors.
Risk level
Investing in REITs is one of the most complicated types of asset investment due to the number of factors affecting the value of property.
How to get started
Investing in REITs is as easy as investing in mutual funds or purchasing shares. You choose a certain REIT and buy shares through your brokerage account.
Who it’s right for
Individual investors may earn a share of the income produced by the REITs without buying commercial real estate on their own.
Calculation example
One of the ways to invest 100 dollars is to buy, for example, 10 equity shares for $10 a share. When you buy equity shares you become an owner of the property and if you wait for an increase in value to $12.35, you will get $123.50. Continue to snowball this amount to make $1000 and more.
Peer-to-Peer (P2P) Lending: The Digital Loan Revolution
What is It
P2P lending is conducted on the basis of online platforms. It can also be called marketplace lending. It resembles lending processes in traditional financial institutions with looser eligibility requirements. To confirm creditworthiness, you can use Imbedded automated algorithms.
How it works
By Peer-to-Peer (P2P) Lending people communicate directly without bank or any other credit institution. Individual investors give money to a person or a small business and get interest payments.
Risk level
Credit status of the borrowers may be not checked enough and requirements to them are significantly lower that leads to potential risks.
How to get started
After P2P lending app registration, identify a type of a loan you want to invest. Every loan offer goes through a soft and hard credit check. Offered terms and interest rate must be agreed in advance as well as repayment schedule.
Who it’s right for
P2P loans are available for individual investors, firms and small businesses, a society or any artificial body. However, the investments are considered unsecured as there is no collateral attached.
Calculation example
Robo-Advisors: The Future of Automated Investing
What is it
Robo-Advisors were designed to give financial advice and carry out investment management. Young underfunded investors may need professional guidance. Robo-advisors with lower fee models can require as little as $0 to open an account.
Risk level
Using a robo-advisor, be mindful that mostly robo-advisors work on certain algorithms and offer limited flexibility and ways to get better performance.
How it works
Robo-advisors are an accessible service with low portfolio management fees. This service offers tax and portfolio strategies usually mirroring a benchmark. In comparison to financial advisors these automated advisors need not have any offices to serve customers.
How to get started
When you pick a digital investment advisor it is important to conduct research and compare features, minimums, performance and returns that will coincide with your financial goals, your age, risk tolerance and timeline.
Who it’s right for
Robo-advisors are a great decision for beginners and intermediate investors. They solve advanced technical tasks and analyze your personal finance or investment purposes.
Calculation example
For robo-advisors one of the crucial points is fee calculation. On a 20 years horizon your 0.25% fees for an account balance of $10,000 will turn into $25 of annual payments.
ETFs and Mutual Funds: Diversification at Its Best
What is it
If you want to invest 100 dollars to make 1000, one of the top options are ETFs and Mutual funds. These funds offer a diversified basket of securities carefully collected in one place together with competitive profit.
Risk level
ETFs and Mutual funds are usually less risky than investing in individual stocks, but more profitable in comparison with saving accounts or certificates of deposits.
How it works
All funds have their predetermined set of management rules according to which they pick up definite stocks, pooling money of investors and diversifying asset allocation in order to get maximum profit. Some funds are passively managed that implies automatic trade and lower fees.
How to get started
Investors who want to invest 100 dollars and see their money growing need to buy shares of the fund. Before that it would be great to analyze a certain fund, its advantages, rules, asset allocation and, of course, commissions and fees.
Who it’s right for
There are multiple ways to invest 100 dollars and get your returns. ETFs and Mutual funds are among the safest ways to do that. Long term investors who think about their future will appreciate it.
Calculation example
If you want to calculate your returns, you can use this formula for one-time investment:
Future Value = Present Value (1 + r/100)^n
r = Estimated rate of return; n = Duration of the investment
Forex Trading: The Global Currency Dance
What is it
Forex trading implies trade at the foreign exchange market which is considered as the largest market in the world with its average daily trading volume $6.6 trillion. This global financial market (Forex) allows people to trade currencies. It resembles currency exchange booths at airports. The forex market assets exist as the main asset — cash — and its derivatives — forwards, futures, options, swaps.
Risk level
Speculative character of forex trading makes this financial instrument risky enough whereas unpredictable issues of international policy and leverage trades only increase this risk level.
How it works
Using this market traders exchange currencies, but exchange rates fluctuate and constantly change. Currency fluctuations allow traders to make their profit. It happens when one currency becomes stronger than another one. Forex tends to be the most liquid asset market in the world.
How to get started
To get started forex trading you need to find a forex brokerage account that suits you, open it and choose the currency pair you want to trade. After that apply your strategy and invest 100 dollars to get profit.
Who it’s right for
Identify your own style whether you want to be:
- a position trader;
- a swing trader;
- a day trader
- or a scalper.
Currency trading in the forex market has speculative character, only a small number of people can effectively use forex to hedge against international currency and interest rate risk.
Calculation example:
Buy formula = (Current rate – Open rate) x Units x USD exchange rate.
Sell formula = (Open rate – Current rate) x Units x USD exchange rate.
Cryptocurrency: The Digital Gold Rush
What is it
Cryptocurrencies as well as ordinary currency let you buy goods, services, store value and participate in software/financial products. Cryptocurrencies operate as a speculative instrument and can be used to generate profit. There are thousands of cryptocurrencies for specific purposes (more than 1.8 million).
Risk level
Returns of people who prefer cryptocurrencies trading are under threat of price fluctuations. At cryptocurrencies markets in comparison to other financial instruments rapid price changes occur and lead to loss of a crypto cash.
How it works
Cryptocurrencies are based on blockchain technology and use tamper-resistant records of transactions to prevent making copies. Cryptocurrencies can be otherwise called coins or tokens. Crypto prices are extremely volatile and the digital money is not tax free.
How to get started
To discover the step by step procedure of cryptocurrency trading it can be helpful to start with a commonly traded one. The market cap of cryptocurrencies is the largest.
Who it’s right for
Both short-term and long-term investors use cryptocurrencies for different purposes.
Calculation example
You bought 10 Chainlink for a total of $73.4 including a transaction fee of 2,5%.
Purchase price: $71.565
Purchase fees: $1.835
Total number of units: 10
Cost basis = ($71.565 + $1.835) / 10 = $73.4
Bonds: The Steady Hand in a Turbulent Market
What is it
When stock markets undergo changes or struggle against crisis and its consequences, bonds are a perfect option to save your money and earn returns without enormous losses. Buying a bond is a process of lending your money to a private or governmental company or municipality.
Risk level
All investments are risky, but the level of risk of bond investing is relatively small. However, before investing your first 100 dollars to make make 1000 a day consider which exactly type of bond you would prefer:
- government bonds;
- corporate bonds;
- municipal bonds;
- mortgage;
- treasury.
How it works
Bonds are debt instruments belonging to the issuer and acquired by parties involved. Governments or companies issue bonds to borrow money for business development needs. Investors buy these debt securities to get rewarding interest payments called coupons. At mature date lenders get their principal amount back.
How to get started
Buying bonds is one of the greatest and the safest ways to invest 100 dollars. To do this, you can use any online broker, exchange traded fund or government directly. For example, if you consider buying treasuries, use TreasuryDirect (an official United States government app).
Who it’s right for
Long-term investors with moderate or low risk tolerance who want to protect their money and earn interest should consider bonds for investments.
Calculation example
Commodities: Tangible Goods in a Digital Age
What is it
Commodities are raw materials used either for consumption or for making other products. Commodities are one of the ways to invest 100 dollars to get profit. You can buy precious metals, oil, gas, corn, wheat and other products or use their derivatives like future contracts and ETPs.
Risk level
Commodities are volatile products and their price may follow inflation or be affected by supply and demand imbalance. Due to the high deviations they are even more risky than many other equity investments. Commodity returns are unpredictable.
How it works
For smart investors commodities offer multiple options to invest 100 dollars and make 1000 a day. Changing prices on raw materials such as iron ore, crude oil and livestock can give great profits. Global events and policy, weather affect supply and demand trends, lead to volatility, but at the same time they give opportunities to earn more. As historical correlation of commodities is less than volatility of traditional assets, commodities reduce volatility of your overall investments. In addition, commodities are not traded on margin and their expense ratios are low.
How to get started
There are various forms of commodity investments:
- futures contracts;
- exchange-traded products;
- mutual funds;
- hedge funds;
- private investments.
Moreover, you can invest in various available products:
- in agriculture;
- natural resources;
- precious metals;
- livestock;
- physical raw commodities.
Invest in this asset type in any form you want from physical ownership to purchasing individual securities or ETFs.
Who it’s right for
Commodities are recommended to sophisticated investors due to their highly volatile nature and global economic and political risks exposure.
Calculation example
If your account is small, switch to mini contracts or trade options. It is better to have 15-20 lots of mini futures than large crude oil futures. In this case, you can create various maneuvers.
Futures Contracts: Betting on Tomorrow’s Prices Today
What is it
Futures contracts resemble option contracts because buying them you get not an asset but right. However, in comparison with options buyers are obliged to acquire assets on expiration date.
Risk level
Futures are derivative instruments that means that their value is derived from an underlying asset that causes additional risks.
How it works
Futures are traded on futures exchanges and involves buyers and sellers. A buyer must purchase an underlying asset at the set price, regardless of the current market price. Futures contracts refer to multiple types of commodities and some other financial assets. These contracts are standardized in contrast to customizable forward contracts.
How to get started
If you decide to buy futures and invest 100 dollars for the first time, you will need to sign up your brokerage account and purchase futures contracts at a stock exchange which deals with futures trading. But remember about associated risks.
Who it’s right for
Futures contracts are used by businesses and investors to hedge their risks and perform arbitrage as well as day traders who speculate on them.
Calculation example
Profit or loss on a position:
Value of a Tick x Number of Tics moved = Profit/ Loss per Contract
Leveraged ETFs: Amplifying Market Moves
What is It
Leveraged ETFs are powerful instruments that are designed to speed up returns. Effective traders use them in order to succeed and build their wealth. Leveraged instruments are complicated and require complex strategies. For this reason, leveraged ETFs are much safer as they are managed by professionals who are experienced in diverse strategies. Leveraged ETFs includes following classes of assets:
- Currency;
- Equity;
- Commodities;
- Derivatives
- Real estate, hedge funds and other alternatives.
Risks
All seekers of higher returns must keep in mind that losses are magnified as well as returns by means of borrowed money. Thus, leveraged ETFs can be risky and need to be handled with care.
How It Works
ETFs using borrowed money aims to provide higher than average returns to an underlying benchmark. Leverage investments amplifies returns owing to the growing amount of an invested capital, but at the same time they increase potential risk and an amount of possible losses.
How to begin
Firstly, consider the specifics of working with leveraged ETFs. Then buy shares of a leveraged exchange-traded fund and enjoy your profit from leveraged (5x, 3x, 2x) or inverse (-1x, -2x, -3x, -5x) exposure.
Who it’s right for
As leveraged ETFs involve extra funds, only experienced investors with a high risk tolerance should deal with leverage trading.
Calculation example
Leveraged ETFs are able to beat overall market performance much faster than ordinary ETFs. If S&P 500 showed 20% return during the day, then a typical leveraged ETF with 2x exposure would return 40% that day.
Short Selling: Profiting from Declines
What is It
A typical investor earns money when the stock price is growing and loses while falling. People that trade in short do vice versa. They benefit from falling markets.
Some people suppose that short selling is one of the investment strategies that does not suit everyone.
Risks
Short selling is risky enough. It includes a margin loan which, in the case of severe market movements, investors are not able to cover.
How it operates
Short selling starts when you sell shares borrowed from your broker. The borrowing is accompanied by interest payments in the outstanding debt.
Before getting a so called margin loan you need to guarantee that you can pay for your debt. For this purpose, margin accounts require cash in the amount of 50% of the position’s value. The short position must be backed up by your equity in account all the time.
When price goes down you can buy shares cheaper, giving them back to the broker and get your profit net of commissions, fees and interest.
How to get started
For short selling you need a margin account and cash serving as a collateral.
Who it’s right for
It is right for risk tolerant people.
Calculation example
Let’s say that you expect price decline and you are going to enter a short position if stock falls below $70. You can set a buy-stop order at $74 and close your position at $64. In this case, your loss will be limited by only $4 per share, while your profit can be $10 (before commissions and fees).
Margin Trading: Borrowing for Bigger Bets
What is It
A margin is a loan borrowed from a broker to trade. You can use margin on real assets or in the derivative segment. Margin trading implies getting profit from the difference between investment value and a margin loan.
Risks
Margin trading losses may be greater than losses from your own money. Moreover, your broker charges interest from your additional costs when the position is opened. If you have not enough cash to keep the margin position, you potentially can get a margin call.
How it works
When you are an underfunded investor, you may require funds to settle the trade. In this case, you can use margin. You deposit a half of the price of an investment while margin serves as a hedging mechanism.
How to get started
Set up a margin account to start margin trading.
Who it’s right for
As values are constantly fluctuating, people dealing with margin trading must be risk-resistant.
Calculation example
For example, an investor wants to purchase 20 shares for $10 per share. But the investor is ready to spend only $100 and buy 10 shares. To increase profit, it is possible to buy 10 more on margin.
If the price reaches $16, the investor will earn $320. After returning borrowed $50, profit will be $270. And now use this amount to double.
Invest in Yourself: The Ultimate Asset
What is It
If you have only a little money, one of the best ways to invest 100 dollars is to spend them on your education. Whether you buy a book or get a certification, it may give a boost to your career.
Risks
There are no risks, only benefits in the long run. You will spend $100, but your knowledge will help to make $1,000 a day and even more for many years.
How it works
When you buy a book on personal finance or investments you dive into the area of knowledge and expand your field of expertise. Taking courses and communicating with people, visiting masterminds and networking bring extra benefits and show you more perspectives. It is hard to overestimate the advantages of professional exchange.
How to get started
First of all, you could set goals and determine which priorities exist in your life. After you have chosen your direction, start to acquire new skills that will help you in your way or find a mentor and a healthy community. Take care of yourself, there is nothing more important than your well-being and health. And at last, travel and attend networking events to enlarge a number of acquaintances.
Who it’s right for
Investing in yourself is important for people in all life stages and at all ages.
Calculation example
To reach financial freedom in future, invest $100 now and you might be able to make $1,000 many times over down the road.
| Type of asset | Returns |
| A book on business and investment topic | new field of study to explore |
| Investing knowledge | |
| Knowledge how to build your own business | |
| Likeminded friends |
FAQ
How can I invest $100 for a quick return?
For quick returns there are a lot of financial instruments from option trading to margin trading and cryptocurrencies. But financial instruments promising quick returns lead to high risks.
Can you make $1000 in a day from stocks?
It is possible to get $1000 in a day using day trading which assumes several buy and sell orders during the day. Another way is to use derivatives or investments in your future which will bring these $1000nhb in the future.
How can I make profit with $100 dollars?
The best way to make profit with $100 dollars is to invest in yourself. You can do it by different ways: through additional knowledge or by means of financial instruments that will bring you returns on your fund.
