Finder makes money from featured partners, but editorial opinions are our own. Advertiser disclosure

How to invest in fractional shares

Invest with specific dollar amounts with fractional shares, and enjoy more flexibility in how you build and diversify your portfolio.

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

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.

Are fractional shares worth it?

Fractional shares provide an opportunity for investors to build portfolios with stocks, ETFs and crypto that may have previously been out of reach.

For example, Berkshire Hathaway Inc Class A (BRK.A) shares, one of the most expensive stocks to ever trade, closed at $527,750 on October 17, 2023. Fractional share trading lets you invest in stocks like this, often for as little as $1, instead of needing $527,750 for one share.

How 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.

Self-directed brokerages that offer fractional share trading:

  • SoFi Invest
  • Robinhood
  • tastytrade
  • Public
  • Interactive Brokers
  • eToro
  • Webull
  • Cash App Investing
  • Fidelity Investments
  • Charles Schwab
  • Vanguard
  • Robo-advisors that offer fractional share trading:

  • Acorns
  • Wealthfront
  • Betterment
  • M1 Finance
  • Titan
  • Steps to buy fractional shares

    Once you’ve opened and funded your account, invest in fractional shares by following these steps:

    1. Choose a platform. Compare brokers in the table below or jump right in and choose from our best stock trading apps of 2024.
    2. Search for the stock. Pinpoint the stock by searching by company name or ticker symbol.
    3. Enter your investment amount. Instead of indicating how many shares you’d like to purchase, enter the dollar amount you’d like to invest.
    4. Submit your order. Review your order details and submit your order to complete the transaction.

    Compare brokerage accounts

    If you’re looking for a new brokerage account, compare your options using the table below.

    1 - 5 of 5
    Name Product Ratings Available asset types Minimum deposit Stock trade fee Cash sweep APY Signup bonus
    SoFi Invest®
    Finder Score: 4.1 / 5: ★★★★★
    SoFi Invest®
    ★★★★★
    Stocks, Mutual funds, ETFs, Alternatives
    $0
    $0
    N/A
    Tastytrade
    Finder Score: 4.6 / 5: ★★★★★
    Tastytrade
    ★★★★★
    Stocks, Options, ETFs, Cryptocurrency, Futures, Treasury Bills
    $0
    $0
    N/A
    Get $100-$5,000
    when you open and fund an account with $5,000 to $1,000,000+
    Highly commended for Best Derivatives Trading Platform award.
    Public.com
    Finder Score: 4.1 / 5: ★★★★★
    Public.com
    ★★★★★
    Stocks, ETFs, Cryptocurrency, Art, Treasury Bills, Collectibles
    $0
    $0
    5.1%
    N/A
    2.5% fee applies to all alternative asset transactions.
    Robinhood
    Finder Score: 4.3 / 5: ★★★★★
    Robinhood
    ★★★★★
    Stocks, Options, ETFs, Cryptocurrency
    $0
    $0
    1.5%, or 5% with Robinhood Gold
    Get a free stock
    when you successfully sign up and link your bank account.
    Try Robinhood Gold for 30 days risk-free upon signup and earn a 5% APY on your uninvested cash, a 3% match on IRA contributions, up to $50,000 in instant deposits and more. Accounts are auto-downgraded after the trial period.
    Moomoo
    Finder Score: 4.7 / 5: ★★★★★
    Exclusive
    Moomoo
    ★★★★★
    Stocks, Options, ETFs
    $0
    $0
    5.10%
    Choose a 1.5% match or 7 free fractional shares
    when you open a new account and meet funding requirements
    No commission stock and ETF trading, with a chance to get a 1.5% cash reward match or 7 free fractional shares.
    loading

    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 and J.P. Morgan Self-Directed Investing are two examples of big brokers that don’t offer this feature.

    Cons

    • May not get voting rights. Voting rights may not be available with fractional shares. It depends on the individual broker. Robinhood is an example of a broker where fractional share owners do get voting rights.
    • 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.

    Can you still receive dividends when you hold fractional shares?

    Yes, you can. Fractional share dividends will be split based on the portion of a share that you own. So if shareholders will receive $1 per share in dividends, then owning half a share will get you 50 cents in dividends. It’s worth noting that if rounding means that you’re due less than a penny in dividends, you’re unlikely to see it hit your account.

    Penny stocks versus fractional shares

    Both penny stocks and fractional shares can cater to the low-dollar investor, but that’s where their similarities end.

    Fractional share trading is a feature that lets you invest with specific dollar amounts. Penny stocks are stocks of companies that cost less than $5 per share. You can buy fractional shares of penny stocks just as you can any other stock.

    Bottom line

    Fractional shares make investing more accessible by letting you invest with a specific dollar amount instead of having to buy in at the stock’s full share price. Fractional shares are available for stocks, ETFs and cryptocurrency.

    Frequently asked questions

    Paid non-client promotion. Finder does not invest money with providers on this page. If a brand is a referral partner, we're paid when you click or tap through to, open an account with or provide your contact information to the provider. Partnerships are not a recommendation for you to invest with any one company. Learn more about how we make money.

    Finder is not an adviser or brokerage service. Information on this page is for educational purposes only and not a recommendation to invest with any one company, trade specific stocks or fund specific investments. All editorial opinions are our own.

    More guides on Finder

    Ask a Question

    Finder.com provides guides and information on a range of products and services. Because our content is not financial advice, we suggest talking with a professional before you make any decision.

    By submitting your comment or question, you agree to our Privacy and Cookies Policy and finder.com Terms of Use.

    Questions and responses on finder.com are not provided, paid for or otherwise endorsed by any bank or brand. These banks and brands are not responsible for ensuring that comments are answered or accurate.

    This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
    Go to site