Millennials have one advantage when it comes to investing: a long time horizon.

A longer time horizon means investments are amplified from compounding interest. 

Experts recommend exchange traded funds for millennials as they tend to have lower fees than mutual funds and they trade like individual stocks.  

"I want people to be able to trade and it tends to be easier [with exchange traded funds] especially for small amounts where fees get waived," said Peter Tchir of TheStreet's Income Seeker.

Watch More with TheStreet:

Don't miss the best videos of the week. Put Wall Street on Rewind and sign up for our weekly newsletter.

Editors' pick: Originally published Nov. 2.