As more people become conscious of the environmental and social impact of their financial decisions, sustainable investing is growing in popularity. For beginners looking to start investing with a limited budget, there are several low-cost sustainable investment platforms that offer affordable entry points into ethical and eco-friendly investments.
In this guide, we’ll explore the best low-cost sustainable investment platforms for beginners and help you choose the right one to start your journey toward building a greener portfolio.
What Is Sustainable Investing?
Before diving into the best platforms, it’s important to understand what sustainable investing means. Sustainable investing, often referred to as ESG investing (Environmental, Social, and Governance), involves putting your money into companies, funds, or assets that aim to create positive environmental or social impacts alongside financial returns.
Why Choose Low-Cost Sustainable Investment Platforms?
For beginners, low-cost investment platforms are crucial because they allow you to start investing without large upfront costs. This makes it easier for new investors to experiment and learn about sustainable investing while minimizing risk.
Top 5 Low-Cost Sustainable Investment Platforms for Beginners
1. Betterment – Best for Hands-Off ESG Investing
When it comes to low-cost sustainable investment platforms, Betterment is one of the best options available. With Betterment, you can start investing with as little as $10 and access their Socially Responsible Investing (SRI) portfolio. This portfolio focuses on companies that meet strict ESG criteria.
- Account Minimum: $10
- Fees: 0.25% annually for standard accounts
- Best Feature: Automated ESG portfolio management
2. M1 Finance – Best for DIY ESG Investing
M1 Finance allows you to build a custom sustainable investment portfolio with no commissions. You can select from their pre-built ESG portfolios or create your own from a list of socially responsible stocks and ETFs. It’s an excellent choice for beginners who want more control over their investments.
- Account Minimum: $100
- Fees: No trading fees; $125/year for premium accounts
- Best Feature: Customizable ESG portfolios with no trading fees
3. Wealthsimple – Best for Canadian Investors
If you’re based in Canada and want to start with low-cost sustainable investment, Wealthsimple offers an easy entry point. They provide a Socially Responsible Investing (SRI) portfolio and have no minimum deposit requirements, making it ideal for beginners.
- Account Minimum: $0
- Fees: 0.5% annually
- Best Feature: Access to socially responsible portfolios with no minimum investment
4. Aspiration – Best for Socially Conscious Banking
For those looking for a platform that combines both sustainable banking and investing, Aspiration is a great choice. Aspiration offers an affordable, sustainable investment platform where you can invest in Fossil Fuel-Free Funds. They also provide a Spend & Save account that aligns with their sustainability mission.
- Account Minimum: $10
- Fees: Pay what you think is fair (no fixed fees)
- Best Feature: Combines socially responsible investing with eco-friendly banking services
5. Acorns – Best for Micro-Investing in Sustainable Portfolios
Acorns is perfect for beginners who want to start investing with spare change. Their ESG portfolios let you invest in sustainable companies with as little as a few dollars at a time. Acorns rounds up your everyday purchases and invests the change into a diversified, socially responsible portfolio.
- Account Minimum: $0
- Fees: $3/month for personal accounts
- Best Feature: Round-up feature to invest small amounts into sustainable portfolios
How to Choose the Best Low-Cost Sustainable Investment Platform
When choosing a sustainable investment platform as a beginner, it’s essential to consider the following factors:
1. Account Minimums and Fees
Look for platforms with low account minimums and reasonable fees. High fees can eat into your returns, especially if you’re starting with a smaller amount of capital. All the platforms mentioned in this guide have low account minimums and affordable fees.
2. Range of Sustainable Investment Options
Some platforms offer pre-built ESG portfolios, while others allow you to create custom portfolios. Depending on your experience and preferences, you might opt for a platform that offers more hands-off management (like Betterment) or more control (like M1 Finance).
3. Ease of Use
As a beginner, you’ll want a platform that is easy to navigate. Look for intuitive interfaces, educational resources, and tools that help you track your investments’ environmental or social impact.
Conclusion: Start Investing Sustainably with a Low-Cost Platform
Sustainable investing is not only about growing your wealth but also about making a positive impact on the world. For beginners, these low-cost sustainable investment platforms make it easy to get started without needing a large amount of money. Whether you prefer a hands-off approach with Betterment or want to build a custom ESG portfolio with M1 Finance, there’s a platform to suit your needs.
Start today by choosing the platform that best aligns with your financial goals and sustainable values.