A brief history of micro-investing
It wasn't always possible to micro-invest. Stock brokers used to charge commissions on every trade, and these fees could range from $10 to $20 or more, depending on your broker. If you only wanted to invest a small amount, you'd lose quite a bit of money to commissions.
There were a few notable changes in the 2010s that made micro-investing possible. Fintech companies launched round-up apps, with Acorns and Stash being two of the most well-known options, that invested your spare change. By using one of these apps, you could build a portfolio through small, recurring investments. People also liked these apps because they were a way to invest money automatically, so it became a habit.
In 2013, Robinhood (HOOD -3.50%) launched and made waves by offering commission-free trading. Six years later, most of the major brokers followed suit and got rid of their commissions. Many brokers have also eliminated minimum account balances and now offer fractional share trading, allowing investors to buy a portion of a stock. With no commissions and no minimum required to invest, there are no obstacles to micro-investing through an online broker.