What is dollar-cost averaging?

How to get the best deal when you can't see the future

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Written by Support
Updated over a week ago

Dollar-cost averaging is an investment strategy to help lower the amount you pay for your investments, and manage risk when you’re buying shares in a company or exchange-traded fund (ETF).

How does dollar-cost averaging work?

Dollar-cost averaging is when you invest the same amount of money in a company or fund at regular intervals. Instead of watching share prices tirelessly for months and months to try and calculate the best time to buy, dollar-cost averagers find a good investment (one they expect to be worth more in the future) and then keep investing in it at regular intervals over a long period of time.

Want more?

If you are new to investing, we have a helpful FAQ full of resources to help you get up and running. You can also sign up to our free Getting Started Course. In just 10 minutes a day for 10 days, we’ll walk you through everything you need to know to make your first share market investment. 

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