My daughter is about to turn one year old and I'd like to start some sort of investment account for her. The purpose would be to invest her birthday and gift money into the stock market each year. I'd like to use this account to teach her how compounding and saving over time has benefited her once she gets older.
My challenge right now is the fees. Basically, let's say she gets a total of $100.00 on her birthday. The online brokerages I'm looking at charge $10 per transaction. That's a 10% hit right off the top. I think it would be a bad lesson.
Are there any "micro"-investing sites or tools or kinds of investments that could help minimize my up-front costs but still permit investing on regular intervals?
Thank you so much.