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Best Brokers for Fractional Share Investing for March 2024

Review Updated
Matt Frankel, CFP®
Dana George
By: Matt Frankel, CFP® and Dana George

Our Brokerages Experts

Ashley Maready
Check IconFact Checked Ashley Maready
Many or all of the products here are from our partners that compensate us. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation. Terms may apply to offers listed on this page.

Fractional shares are more important in 2024 than ever before: The Dow Jones Industrial Average and S&P 500 both recently hitting new all-time highs means many popular stocks trade for hundreds or thousands of dollars per share. With fractional share investing, you can trade pieces of shares of your favorite stocks for as little as $1. If you're interested in fractional shares, keep reading for our list of top brokers that offer fractional share investing.

There are a lot of options to compare out there. If you're looking for a place to start, here are a few fractional share brokers our experts recommend and why they like them:

Our 5 Best Brokers for Fractional Share Investing

Broker/Advisor Best For Commissions Next Steps
Award Icon 2024 Award Winner
Robinhood Offer Image
Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Best For:

Modern, low-cost investing

Commission:

$0 for stocks, ETFs, and options

Award Icon 2024 Award Winner
SoFi Active Investing Offer Image
Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Best For:

Membership offerings

Commission:

$0 for stocks, $0 for options contracts

Fidelity Offer Image
Rating image, 5.0 out of 5 stars.
5.0/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Rating image, 5.0 out of 5 stars.
5.0/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Best For:

Fractional share selection

Commission:

$0 commission for online U.S. stock and ETF trades

Award Icon 2024 Award Winner
Charles Schwab Offer Image
Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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= Excellent
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Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Best For:

Beginner investors

Commission:

$0 stock, ETF, and Schwab Mutual Fund OneSource® trades

Cash App Investing Offer Image
Rating image, 4.0 out of 5 stars.
4.0/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Rating image, 4.0 out of 5 stars.
4.0/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Best For:

Mobile app experience

Commission:

$0 for stocks, fees vary for cryptocurrencies

How to choose a broker for fractional share investing

Here are two important questions you'll need to answer when looking for a broker to trade fractional shares:

  • How much does this firm charge in transaction fees? Unless you're okay with fees nibbling away at your investment, you'll want a brokerage with low or no fees.
  • How easy has the broker made the process? Some apps and sites make buying and selling fractional shares easy, and some don't. Look at the broker's website -- as well as their app reviews, if you plan to use an app -- to get an idea of what your experience might be.
Robinhood
Open Account for Robinhood

On Robinhood's Secure Website.

Ratings Methodology
Award Icon 2024 Award Winner

Our Rating:

Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Bottom Line

Fractional shares can be purchased commission free with as little as $1, for companies with a market capitalization of at least $25 million. Robinhood's commission-free and modern brokerage experience further its lead in this area.

Fees:

$0 for stocks, ETFs, and options

Account Minimum:

$0

Open Account for Robinhood

On Robinhood's Secure Website.

Award Icon 2024 Award Winner

Our Rating:

Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Bottom Line

SoFi Stock Bits can be purchased with as little as $1. Investors can also make purchases commission free, earning them access to begin investing in select popular stocks and ETFs.

Fees:

$0 for stocks, $0 for options contracts

Account Minimum:

$0

Special Offer Circle with letter I in it. For new accounts: Customer must fund their Active Invest account with at least $10 within 30 days of opening the account. Probability of customer receiving $1,000 is 0.028%.

Get up to $1,000 in stock when you fund a new Active Invest account.

Our Rating:

Rating image, 5.0 out of 5 stars.
5.0/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Bottom Line

Buy fractional shares for as little as $1, for over 7,000 companies. Fidelity's robust suite of solutions and commission-free investment options explains why it's a leading broker pick as well.

Fees:

$0 commission for online U.S. stock and ETF trades

Account Minimum:

$0

Open Account for Fidelity

On Fidelity's Secure Website.

Award Icon 2024 Award Winner

Our Rating:

Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Bottom Line

Schwab Stock Slices allow investors to buy fractional shares of S&P 500 companies starting with as little as $5. What's more, Schwab has a strong reputation for having an easy-to-use trading platform, extensive customer service, and access to global markets with no account minimums.

Fees:

$0 stock, ETF, and Schwab Mutual Fund OneSource® trades

Account Minimum:

$0

Our Rating:

Rating image, 4.0 out of 5 stars.
4.0/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
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Bottom Line

Buy fractional shares with as little as $1. A one-stop, simplified shop for your banking, payment, and investing needs, including stocks and cryptocurrencies.

Fees:

$0 for stocks, fees vary for cryptocurrencies

Account Minimum:

$0

TIP

Buying your first stocks: Do it the smart way

Once you’ve chosen one of our top-rated brokers, you need to make sure you’re buying the right stocks. We think there’s no better place to start than with Stock Advisor, the flagship stock-picking service of our company, The Motley Fool. You’ll get two new stock picks every month, plus 10 starter stocks and best buys now. The average stock pick inside Stock Advisor is up 661% — more than 4x that of the S&P 500! (as of 4/15/2024). Learn more and get started today with a special new member discount.

How to open a brokerage account for buying fractional shares

Once you've determined which brokerage you would like to work with, go back to its website and look for a button labeled "Open an Account."

Once there, you may be surprised by how much information you're asked to supply. That's because brokers need this information to comply with federal laws and regulations.

Here's a sample of what you may be asked to provide:

  • Your name
  • Social Security number (SSN) or taxpayer identification number (TIN)
  • Address
  • Telephone number
  • Email address
  • Date of birth
  • Driver's license, passport information, or some other form of government-issued ID
  • Employment status and occupation
  • Insight into your investment objective and risk tolerance

How to buy fractional shares

As soon as you find a brokerage firm that offers fractional shares on its trading platform and have checked out its fee structure, it's time to fund your account and start buying. Here are the four general steps required:

  1. Deposit funds into the account. It may take several days for the funds to settle in the account.
  2. Select the stock or ETF that you want to purchase. If the broker does not provide a list of available fractional share stocks (many do), ensure the broker allows fractional shares for the stocks you have chosen.
  3. Choose the amount you want to invest in each stock or ETF. This may be a set dollar amount you deposit every month or based on the portfolio allocation you have selected.
  4. Follow the prompts to make a purchase. The money to cover your purchase will be deducted from the funds you have deposited into the account.

Can you buy fractional shares of any stock?

You can buy fractional shares of any stock offered as fractional shares by your brokerage.

Some companies don't offer fractional shares, and different brokerage firms tend to offer a slightly different menu of stock options. And that's an important factor to keep in mind as you're shopping around for the right brokerage.

Planning ahead is a good way to ensure you sign on with the right broker. Let's say you have your heart set on buying fractional shares of Tesla and CVS stock. Make sure any broker you're considering offers both.

How much do fractional shares cost?

Typically, you can start investing by buying a fractional share for as little as $1 to $5. That's a far cry from having to put together nearly $3,000 for a single share of Autozone.

Can you make money with fractional shares?

Yes, you can make money with fractional shares -- you can also lose money with fractional shares. Just like with whole shares of stock, whether or not you make money with fractional shares depends on several factors, such as the market or the company itself.

Is buying fractional shares worth it?

Absolutely. There are several reasons why buying fractional shares is worth it.

Fractional shares allow you to begin investing with very little money. They're a great way to get your feet wet without betting the farm. Additionally, once you have a brokerage account, you may have access to educational resources (depending on your brokerage). These can help you learn to be a better investor in the future even if you're starting small right now.

Pros

  • Investors can invest in the stock market with little money.
  • Investors can invest in high-priced stocks.
  • Investors can build a diversified portfolio of stocks and ETFs with less money.
  • Investors can rebalance their portfolio much easier.
  • Investors can have their money working for them immediately and not sitting in cash.

Cons

  • Fractional shares are not available with every broker.
  • Buying fractional shares can complicate record keeping and bookkeeping.
  • There may be liquidity issues with fractional shares.
  • Investors may not be able to transfer fractional shares.
  • Depending on the broker, investors may not have shareholders rights.
  • If investors own a very small fraction of a share, they may not get the dividend.

What are fractional shares?

A fractional share is a position in a stock equal to less than a whole share. The fraction is between 0 and 1.

Fractional shares are important because they allow newer investors or people who typically invest small amounts of money to invest in stocks.

You'll often see half-shares after stock splits. Companies sometimes offer 1.5 or 2.5 new shares for every existing share, resulting in fractional shares. But fractional shares can be smaller, too. Many companies calculate them down to thousandths or even ten-thousandths of a share.

FAQs

  • Fractional shares are partial shares or a portion of a company's stock. They can be bought and sold just like whole shares. Fractional investing has made investing more affordable. For example, some stocks can cost upwards of $1,000 a share. An investor with only $500 cannot afford to purchase one whole share. With fractional shares, however, the investor can own a piece of that full share. Fractional shareholders receive the same benefits as other shareholders, such as voting rights (depending on the broker) and dividends. They receive the same percentage gains or losses as those who own whole shares.

  • Many brokers are starting to offer fractional shares to attract younger and beginner investors, but some brokers do not offer fractional shares yet. This may be due to brokers not ready to handle the recordkeeping and bookkeeping that comes with fractional shares, challenges with clearing firms, and the financial commitment of the broker required to hold remaining fractional shares.

Our Brokerages Experts

Brokerages we evaluated for consideration on this page: Acorns, Ally Invest, Axos Self-Directed Trading, Betterment, Cash App Investing, Charles Schwab, Delphia, Domain Money, Ellevest, Empower, eToro Brokerage, E*TRADE Core Portfolios, E*TRADE, Fidelity, Fidelity Cash Management, Fidelity Go®, Firstrade, FOREX.com, Interactive Brokers, J.P. Morgan Self-Directed Investing, M1 Finance, Magnifi, Marcus Invest, Merrill Edge® Self-Directed, moomoo, NinjaTrader, Personal Capital, Plynk, Prosperi Academy, Public, Robinhood, Rocket Dollar, Schwab Intelligent Portfolios, SoFi Active Investing, SoFi Automated Investing, Stash, Stockpile, Tastytrade, Titan, Tornado App, TradeStation, Tradier, Vanguard, Vanguard Digital Advisor®, Wealthfront, Webull, Zacks Trade.