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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:
Broker/Advisor | Best For | Commissions | Next Steps | |
---|---|---|---|---|
2024 Award Winner
Featured Offer
Rating image, 4.5 out of 5 stars.
4.5/5
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 = Good = Fair = Poor |
Rating image, 4.5 out of 5 stars.
4.5/5
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 = Good = Fair = Poor |
Best For:
Modern, low-cost investing |
Commission:
$0 for stocks, ETFs, and options; $5 monthly for Robinhood Gold |
|
2024 Award Winner
Rating image, 4.5 out of 5 stars.
4.5/5
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 = Good = Fair = Poor |
Rating image, 4.5 out of 5 stars.
4.5/5
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 = Good = Fair = Poor |
Best For:
Membership offerings |
Commission:
$0 for stocks, $0 for options contracts |
|
Rating image, 5.0 out of 5 stars.
5.0/5
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 = Good = Fair = Poor |
Rating image, 5.0 out of 5 stars.
5.0/5
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 = Good = Fair = Poor |
Best For:
Fractional share selection |
Commission:
$0 commission for online U.S. stock and ETF trades |
|
2024 Award Winner
Rating image, 4.5 out of 5 stars.
4.5/5
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 = Good = Fair = Poor |
Rating image, 4.5 out of 5 stars.
4.5/5
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 = Good = Fair = Poor |
Best For:
Beginner investors |
Commission:
$0 stock, ETF, and Schwab Mutual Fund OneSource® trades |
|
Rating image, 4.0 out of 5 stars.
4.0/5
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 = Good = Fair = Poor |
Rating image, 4.0 out of 5 stars.
4.0/5
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 = Good = Fair = Poor |
Best For:
Mobile app experience |
Commission:
$0 for stocks, fees vary for cryptocurrencies |
Here are two important questions you'll need to answer when looking for a broker to trade fractional shares:
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.
$0 for stocks, ETFs, and options; $5 monthly for Robinhood Gold
$0
On Robinhood's Secure Website.
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.
$0 for stocks, $0 for options contracts
$0
Get up to $1,000 in stock when you fund a new Active Invest account.
On SoFi Active Investing's Secure Website.
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.
$0 commission for online U.S. stock and ETF trades
$0
On Fidelity's Secure Website.
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.
$0 stock, ETF, and Schwab Mutual Fund OneSource® trades
$0
Buy fractional shares with as little as $1. A one-stop, simplified shop for your banking, payment, and investing needs, including stocks and cryptocurrencies.
$0 for stocks, fees vary for cryptocurrencies
$0
TIP
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.
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:
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:
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.
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.
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.
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.
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.
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.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.
Robinhood disclosure
All investments involve risk and loss of principal is possible.
Securities are offered through Robinhood Financial LLC, member FINRA/SIPC. Cryptocurrency services are offered through an account with Robinhood Crypto, LLC (NMLS ID 1702840). Robinhood Crypto is licensed to engage in virtual currency business activity by the New York State Department of Financial Services. Cryptocurrency held through Robinhood Crypto is not FDIC insured or SIPC protected. For more information see the Robinhood Crypto Risk Disclosure.
Trades of stocks, ETFs and options are commission-free at Robinhood Financial LLC. Other fees may apply. Please see Robinhood Financial’s Fee Schedule to learn more.
Fractional shares are illiquid outside of Robinhood and are not transferable. Not all securities available through Robinhood are eligible for fractional share orders. For a complete explanation of conditions, restrictions and limitations associated with fractional shares, see the Fractional Shares section of our Customer Agreement.
Robinhood Gold is an account offering premium services available for a $5 monthly fee. Not all investors will be eligible to trade on Margin. Margin investing involves the risk of greater investment losses. Additional interest charges may apply depending on the amount of margin used. Bigger Instant Deposits are only available if your Instant Deposits status is in good standing.
Fidelity disclaimers
The Fidelity Cash Management account is a brokerage account designed for investing, spending and cash management. Investing excludes options and margin trading. For a more traditional brokerage account, consider the Fidelity Account.
Fractional share quantities can be entered out to 3 decimal places (.001) as long as the value of the order is at least $1.00. Dollar-based trades can be entered out to 2 decimal places (e.g. $250.00)
*Zero account minimums and zero account fees apply to retail brokerage accounts only. Expenses charged by investments (e.g., funds, managed accounts, and certain HSAs) and commissions, interest charges, or other expenses for transactions may still apply. See Fidelity.com/commissions for further details.
**Your account will automatically be reimbursed for all ATM fees charged by other institutions while using a Fidelity® Debit Card linked to your Fidelity Cash Management Account at any ATM displaying the Visa®, Plus®, or Star® logos. The reimbursement will be credited to the account the same day the ATM fee is debited from the account. Please note that there may be a foreign transaction fee of 1% that is not waived, which will be included in the amount charged to your account. The Fidelity® Debit Card is issued by PNC Bank, N.A., and the debit card program is administered by BNY Mellon Investment Servicing Trust Company. These entities are not affiliated with each other or with Fidelity Investments. Visa is a registered trademark of Visa International Service Association, and is used by PNC Bank pursuant to a license from Visa U.S.A. Inc.
***The Cash Balance in the Fidelity Cash Management Account is swept into an FDIC-Insured interest-bearing account at one or more program banks and, under certain circumstances, a Money Market mutual fund (the "Money Market Overflow"). The deposits swept into the program bank(s) are eligible for FDIC Insurance, subject to FDIC insurance coverage limits. Balances that are swept to the Money Market Overflow are not eligible for FDIC insurance but are eligible for SIPC coverage under SIPC rules. At a minimum, there are five banks available to accept these deposits, providing for up to $1,250,000 of FDIC insurance. If the number of available banks changes, or you elect not to use, and/or have existing assets at, one or more of the available banks, the actual amount could be higher or lower. All assets of the account holder at the depository institution will generally be counted toward the aggregate limit. For more information on FDIC insurance coverage, please visit www.FDIC.gov. Customers are responsible for monitoring their total assets at each of the Program Banks to determine the extent of available FDIC insurance coverage in accordance with FDIC rules. The deposits at Program Banks are not covered by SIPC.