Fractional Shares: What Are They and How to Invest

Fractional shares make investing more accessible by lowering the barrier to entry for high-dollar stocks, every stock really, but not all brokers offer this feature. Here’s what you need to know about investing with fractional shares and which brokers provide this valuable feature.

What are fractional shares?

Fractional shares are slices of whole shares, letting you invest in stocks and exchange-traded funds (ETFs) with a specific dollar amount instead of having to buy in at the stock’s full share price.

Fractional shares can also be created as a result of stock splits, company mergers and dividend reinvestment plans. But not all brokers offer access to fractional share trading – i.e. the ability to actively trade fractions of shares instead of whole shares.

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How fractional shares work

Fractional shares let you buy a portion of a stock, enabling investment in high-priced companies with smaller sums. Here’s the process:

• Select a compatible broker. Choose a platform offering fractional shares, such as SoFi Invest, Robinhood or Webull. Confirm availability, as not all brokers support this feature.
• Set your investment amount. Decide how much to invest — say, $100. The platform calculates the fraction of a share you’ll receive based on the stock’s market price. For example, a $400 stock yields 0.25 shares for $100.
• Broker executes the trade. The brokerage aggregates orders or uses its inventory to purchase whole shares, assigning you the fractional portion. Trades typically settle instantly or within a day.
• Proportional ownership. You gain the same benefits as whole-share owners, scaled to your fraction. If a $200 stock pays a $2 dividend and rises to $220, your 0.5 share earns $1 in dividends and $10 in value.
• Selling fractions. Sell your fractional shares anytime, subject to the platform’s rules. Proceeds reflect the current market value of your fraction.

Where to buy fractional shares

You’ll need to open a brokerage account with a platform that offers fractional share trading. Fractional share trading is available with several self-directed brokerage accounts and robo-advisors.

• SoFi Invest terms and conditions

  INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE
  
  Other fees, such as exchange fees, may apply. Please view our fee disclosure to view a full listing of fees.
  
  Investing in alternative investments and/or strategies may not be suitable for all investors and involves unique risks, including the risk of loss. An investor should consider their individual circumstances and any investment information, such as a prospectus, prior to investing. Interval Funds are illiquid instruments, the ability to trade on your timeline may be restricted. Brokerage and Active investing products offered through SoFi Securities LLC, Member FINRA (www.finra.org) /SIPC(www.sipc.org).
  
  There are limitations with fractional shares to consider before investing. During market hours fractional share orders are transmitted immediately in the order received. There may be system delays from receipt of your order until execution and market conditions may adversely impact execution prices. Outside of market hours orders are received on a not held basis and will be aggregated for each security then executed in the morning trade window of the next business day at market open. Share will be delivered at an average price received for executing the securities through a single batched order. Fractional shares may not be transferred to another firm. Fractional shares will be sold when a transfer or closure request is initiated. Please consider that selling securities is a taxable event.
  
  Options involve risks, including substantial risk of loss and the possibility an investor may lose the entire investment Before trading options please review the Characteristics and Risks of Standardized Options
  
  Utilizing a margin loan is generally considered more appropriate for experienced investors as there are additional costs and risks associated. It is possible to lose more than your initial investment when using margin. Please see https://www.sofi.com/wealth/assets/documents/brokerage-margin-disclosure-statement.pdf for detailed disclosure information
  
  SoFi Plus members can schedule an unlimited number of appointments with a financial planner during periods in which the SoFi Plus member meets the eligibility criteria set forth in section 10(a) of the SoFi Plus Terms and Conditions. SoFi members who are not members of SoFi Plus can schedule one (1) appointment with a financial planner. The ability to schedule appointments is subject to financial planner availability. SoFi reserves the right to change or terminate this benefit at any time with or without notice. Advisory services are offered by SoFi Wealth LLC, an SEC-registered investment adviser. Information about SoFi Wealth’s advisory operations, services, and fees is set forth in SoFi Wealth’s current Form ADV Part 2 (Brochure), a copy of which is available upon request and at www.adviserinfo.sec.gov.
  
  Offer valid from 12/15/25 through 1/2/26. Customer must fund their Active Invest account with at least $50 within 45 days of opening the account. Receive a minimum of $15. Probability of member receiving $3,000 is a probability of 0.026% If you don’t make a selection in 45 days, you’ll no longer qualify for the promo. Percentages for the $3,000 are subject to decrease. See full terms and conditions.
  
  Terms and conditions apply*. For 401k rollovers, existing SoFi IRA members must complete 401k rollovers via this link See full terms and For SoFi members without a SoFi IRA, a SoFi IRA must first be opened, and 401k rollover must be completed utilizing Capitalize via this link. SoFi and Capitalize will charge no additional fees to process a 401(k) rollover to a SoFi IRA. SoFi is not liable for any costs incurred from the existing 401k provider for rollover. Please check with your 401k provider for any fees or costs associated with the rollover. For IRA contributions, only deposits made via ACH and cash transfer from SoFi Bank accounts are eligible for the match. Click here for the 1% Match terms and conditions.
  
  Must be a SoFi Plus member at the time a recurring deposit is received into your SoFi Active or Automated investing account to qualify. Bonus calculated on net monthly recurring deposits made via ACH and paid out as Rewards Points. See Rewards Terms of Service. SoFi reserves the right to change or terminate this promotion at any time without notice. See terms and limitations. https://www.sofi.com/sofiplus/invest/#disclaimers

• eToro Disclaimer

  eToro securities trading offered by eToro USA Securities, Inc. (‘the BD”), member of FINRA and SIPC. Investing involves risk, and content is provided for educational purposes only, does not imply a recommendation, and is not a guarantee of future performance. Finder is not an affiliate and may be compensated if you access certain products or services offered by the BD.

Pros and cons of fractional share trading

Pros

• Lowers the barrier to entry. Invest in companies of any share price with a specific dollar amount, often as little as $1.
• Makes it easier to diversify your portfolio. Instead of allocating funds to a single high-dollar share, you can purchase fractional shares to spread your funds across multiple stocks.
• Available with most brokers. Most brokers, especially stock trading apps, offer fractional share trading. E*TRADE is an exception, as it does not offer fractional share trading.

Cons

• May not get voting rights. Depending on the broker, voting rights may not be available with fractional shares. You may not get voting rights until you accumulate an entire share.
• Account transfers. It’s often challenging to transfer fractional shares between brokers, so you may need to sell your fractional shares before you can move funds.

Bottom line

Fractional shares break down the barrier to investing by letting you buy slices of stocks and ETFs with just a few dollars. Although not every broker offers them, many popular platforms now do. Just be sure to check minimum amounts, dividend treatment and transfer limitations before you invest.

Written by

Matt Miczulski

Investments editor and market analyst

Matt Miczulski is an investments editor and market analyst at Finder. With over 450 bylines, Matt dissects and reviews brokers and investing platforms to expose perks and pain points, explores investment products and concepts and covers market news, making investing more accessible and helping readers to make informed financial decisions. Before joining Finder in 2021, Matt covered everything from finance news and banking to debt and travel for FinanceBuzz. His expertise and analysis on investing and other financial topics has been featured on Yahoo Finance, CBS, MSN, Best Company and Consolidated Credit, among others. Matt holds a BA in history from William Paterson University. See full bio

Matt's expertise

Matt has written 204 Finder guides across topics including:

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