Best Fractional Share Brokerages to Buy Partial Shares & ETFs

Fractional investing is a relatively new concept that has only gained popularity in recent years. There are now a number of different brokerages that offer this type of investing, and it can be a great way to get started in the stock market without having to commit a large amount of money.

If you want to start investing and want to buy stocks but don't have enough cash to buy an entire share, don't worry—you can still invest. Fractional share investing allows you to buy a partial share of stock, so you can start building your portfolio without breaking the bank. Here are the best fractional share brokerages.

How to Buy Fractional Shares and ETFs?

Buying fractional shares is a great way to start investing with little money but not all investing apps allow consumers to buy fractional shares of stocks.

You'll likely want to find a brokerage that offers this and charges $0 commissions.

Here are the basic steps to get started with buying fractional shares:

• Find a brokerage business that provides fractional shares as the initial step.
• Make a deposit into the account. The deposit will usually take several days to settle in the account.
• Select the stock or exchange-traded fund (ETF) that you wish to buy. Check with your broker to see if the stocks you've chosen accept fractional shares. Are you unsure what to buy? Take a look at our best small investment opportunities.
• Decide how much you want to put into each stock or ETF. This might be a monthly deposit of a certain amount or dependent on the portfolio allocation you've chosen.

Here's a deeper look at my favorite fractional share investing brokerages to help you choose the ideal one for your needs.

Best Fractional Share Investing Brokerages

4.5	4.5	4.9
Robinhood’s fractional shares let you invest as little as $1, diversify your portfolio easily, reinvest dividends automatically, and trade commission-free on thousands of stocks and ETFs.	SoFi’s fractional shares let you invest as little as $5, trade commission-free, access thousands of stocks and ETFs, reinvest dividends, and diversify your portfolio easily.	Webull’s fractional shares let you invest with as little as $5, trade commission-free, access thousands of stocks and ETFs, and precisely diversify your portfolio.
Commission-free trades User-friendly interface Cryptocurrency access	Commission-free trades Fractional shares Access to IPOs	Commission-free trades Broad asset access Purchase as little as 0.00001 of a share
Open Account	Open Account	Open Account

4.5

Robinhood’s fractional shares let you invest as little as $1, diversify your portfolio easily, reinvest dividends automatically, and trade commission-free on thousands of stocks and ETFs.

• Commission-free trades
• User-friendly interface
• Cryptocurrency access

Open Account

4.5

SoFi’s fractional shares let you invest as little as $5, trade commission-free, access thousands of stocks and ETFs, reinvest dividends, and diversify your portfolio easily.

• Commission-free trades
• Fractional shares
• Access to IPOs

Open Account

4.9

Webull’s fractional shares let you invest with as little as $5, trade commission-free, access thousands of stocks and ETFs, and precisely diversify your portfolio.

• Commission-free trades
• Broad asset access
• Purchase as little as 0.00001 of a share

Open Account

1. Robinhood (Our Pick)

Fast Facts

• Minimum deposit: $0
• Fees: $0
• Account Types: Taxable brokerage, crypto, cash management account

Does Robinhood have fractional shares?

With Robinhood, you can place fractional share orders in real-time. Trades placed during market hours are executed at that time, so you'll always know the share price. More than 60% of Robinhood customers have traded fractional shares. This fractional shares app has excellent features such as a high-yield cash management account and access to alternative assets such as cryptocurrency and precious metals like gold and silver.

The amount of the shares you may buy is also quite flexible – they can be as little as one-millionth (1/1,000,000) of a share. Even if a stock is worth a few thousand dollars a share, you can buy a fraction of one for $1. The purchase procedure on the Robinhood app is adjustable, so you may choose to trade stocks in dollar quantities (e.g., $5 worth of Amazon stock) or in percentages.

We chose it because you may trade fractional and entire shares without paying a fee. However, other non-commission costs may apply to your brokerage accounts, such as Gold subscription fees, wire transfer fees, and print statement fees.

Robinhood

4.5

Robinhood is a user-friendly app that lets you invest in stocks, ETFs, crypto, and more—all commission-free. It's perfect for beginners and casual investors looking to build wealth with ease. Key features include fractional shares, instant deposits, and access to a wide range of assets. Start investing smarter today!

Open Account Robinhood Review

2. SoFi Invest

Fast Facts

• Minimum deposit: $0
• Fees: $0
• Account types: Taxable brokerage, retirement, banking, crypto

Does SoFi have fractional shares?

SoFi Invest allows for the purchase of fractional shares at no additional cost to the investor. Using an online brokerage offering like SoFi fractional shares can be a simple way to get started choosing your own stocks for dollar-based investing.

SoFi (short for “Social Finance”) is a fintech firm located in the United States that was formed in 2011. It began as a student loan refinancing company but has subsequently grown into the broker industry. SoFi Invest is the company's brand for low-cost or no-fee brokerage services.

SoFi Invest provides both active and passive investment options. A self-directed account is one in which you may trade stocks, ETFs, and cryptocurrencies on your own. SoFi Invest automated investing, on the other hand, is a Robo-advisory service in which SoFi Invest manages your assets. We put SoFi Invest's active investing to the test in this assessment.

SoFi Invest offers different trading and investing platforms along with other services. The “automated investment” option should be selected by those interested in the robo-advisor service. You can pick between a tax-advantaged (IRA) and a taxable investment account once you've decided on an automatic investing account.

SoFi Invest

4.8

SoFi Invest is one of the best investment apps, especially for beginners in the US. It offers an intuitive trading experience, active or automated investing, and options like cryptocurrencies. SoFi Invest offers a variety of investment options, including stocks, bonds, fractional shares, ETFs, options, IPOs, crypto trading, retirement accounts, and robo-advising. 

Open Account

3. Webull

Fast Facts

• Minimum deposit: $0
• Fees: $0
• Account types: Taxable brokerage, retirement, crypto

Does Webull have fractional shares?

Webull offers fractional shares for most stocks and ETFs that are available on its platform. Webull is one of the newest online brokers, having been founded in 2017. In January 2022, Webull launched fractional trading on their platform.

Webull is positioning itself to cater to novice and more active traders, as well as others who are drawn to a platform that offers a wide range of free services, such as no account minimums, commission-free stock/ETF and options trading, and access to numerous cryptocurrencies such as Shiba Inu.

With a less complete offering than full-service competitors, Webull skews toward the self-directed investor. Customers of Webull, on the other hand, get a lot of bang for their buck: a good platform with a lot of useful tools and features, as well as competitive margin rates.

Get 6 free stocks for new accounts

Webull

4.9

When you deposit over $2,000, you’ll score 40 free fractional shares just for signing up!

Webull is a commission-free trading app that’s perfect for active traders. With features like advanced charting, real-time market data, and fractional shares, it gives you the tools to trade stocks, ETFs, options, and more. Plus, you get extended trading hours and a paper trading option to test strategies without risk. Start trading smarter with Webull today!

Open Account + Claim Bonus ???? View Bonus

4. Fidelity Investments

Fast Facts

• Minimum deposit: $0
• Fees: $0
• Account types: Taxable brokerage, retirement, education, custodial, trust, HSA

Does Fidelity have fractional shares?

Fidelity is ranked among the best brokerages, and it offers Stocks by the Slice, which allows you to acquire fractional shares. Fidelity Investments is the latest brokerage to let investors trade fractions of stocks and exchange-traded funds on its online brokerage platform for free.

You might want to consider Fidelity for a variety of reasons. First, fractional shares can be purchased for as little as $1, making it simple to get started even if you don't have much money. Fidelity also provides a variety of free learning materials to help you improve your investment abilities and approach. It also provides a beginner-friendly investment app for those who are just getting started with investing.

5. Interactive Brokers

Fast Facts

• Minimum deposit: $0
• Fees: $0
• Account types: Taxable brokerage, retirement, custodial, trust

Does Interactive Brokers have fractional shares?

Interactive Brokers allows for the purchase of fractional shares. Using an online brokerage like Interactive Brokers to buy fractional shares can be a simple way to get started choosing your own stocks for dollar-based investing.

For different degrees of trading and investing ambitions, Interactive Brokers provides two types of accounts. There are no recurring fees or trading charges with IBKR Lite. Interactive Brokers offers a wide range of tools for active traders, including those required by Wall Street professionals.

Interactive Brokers, which has long been renowned as a high-powered option for professional and aggressive traders, now provides fractional shares, which is a godsend to investors who don't have vast means. On the broker's Pro platform (cost: $1 or at the broker's tiered rate), you can buy fractional shares, while trading on the Lite platform is free.).

Users must complete a step in order to activate fractional shares in their accounts. Once enabled, you can trade practically any stock or ETF on any exchange in the United States, including numerous over-the-counter, pink sheet equities, well beyond the New York Stock Exchange (NYSE) and NASDAQ. Depending on how you put your order, the minimum order for a fractional share is $1 or 0.0001 shares.

6. Charles Schwab

Fast Facts

• Minimum deposit: $0
• Fees: No recurring fees or trade commissions
• Account types: Taxable brokerage, retirement, education, custodial, trust

Does Charles Schwab have fractional shares?

Stock Slices™, a fractional-share trading tool from Charles Schwab, has launched about a year ago. With a Schwab account, you can now trade whole-dollar amounts rather than whole-share amounts in any of the 500 stocks that make up the S&P 500 index. Other equities are currently unavailable for fractional-share trading at Schwab, while ETFs are entirely excluded.

Schwab's fractional share program allows you to get into equities for as little as $5 and supports all 500 S&P 500 stocks. Any of these stocks can be purchased using the Stock Slices area of the website or mobile app. You can acquire up to 30 stocks in a single transaction. Stock Slices can be given as a gift with custodial accounts.

7. Stash

Fast Facts

• Investing minimum: Invest any dollar amount
• Fees: Start at $3/month
• Account types: Taxable account, retirement

Does Stash have fractional shares?

Stash offers two account types and customers can invest in ETFs, fractional shares, and single stocks. Fractional shares start at $0.05 for investments that cost $1,000+ per share.

Stash was launched in 2015 to assist ordinary Americans in investing and growing their money. The all-digital experience focuses on assisting younger investors in successfully managing their money to put them up for future financial success.

Stash has designed its platform around teaching users a wide range of investing and financial subjects to promote this aim. Stash also avoids confusing financial jargon while maintaining investing flexibility by enabling you to choose between manually selecting assets or using the completely automated Smart Portfolio option.

Brokerages That Do Not Offer Fractional Shares

Merrill Edge

Fast Facts

• Minimum deposit: $0
• Fees: No fees
• Account types: Taxable brokerage, retirement, education, custodial, trust

Does Merrill Edge offer fractional shares?

Merrill Lynch does not offer fractional share investing in stocks or ETFs. Merrill Edge allows for dividend reinvestment in fractional shares but not direct purchases of fractional shares. Investors may also re-invest dividends from equities and ETFs as well as mutual funds through Merrill.

Merrill Edge is a stockbroker based in the United States that was launched by Bank of America (BoFA) in 2010. Merrill Edge was launched when BofA purchased Merrill Lynch amid the 2008 financial crisis, with the goal of combining its online investing arm with Merrill Lynch's investment expertise. Merrill Edge offers different stocks, ETFs, options, and bonds from the United States.

Vanguard

Fast Facts

• Minimum deposit: $0
• Fees: Vanguard charges a $0 fee for trading online and commission, however, there are certain fees that vanguard charge for other services it offers.
• Account types: Taxable brokerage, retirement, education, custodial, trust

Does Vanguard have fractional shares?

Vanguard does not offer fractional-share investing in stocks or ETFs, though the broker does allow you to reinvest dividends in stocks, ETFs and mutual funds. Just be sure to track your dividends if you use this feature.

Even so, in the area of personal finance, Vanguard is a behemoth. Since John Bogle founded the company in 1975, they have been making waves in the financial services market. Vanguard was created on the idea that well-diversified low-fee funds will outperform most other investing options.

Since then, Vanguard has continued to offer some of the lowest-cost ETFs (e.g., VGSTX) and other funds on the market. Investors who want to open an account with the company can now do so with IRAs and investment brokerage accounts.

Vanguard does not enable you to invest in fractional shares of stocks or ETFs, However, there's a reason Vanguard is known for its mutual funds rather than its brokerage services. High trading commissions for active users, a non-intuitive website design, and limited trading and research capabilities make it difficult for the company to compete effectively in the fast-paced online investing and trading business.

Vanguard Fees

• Annual account service fee: Vanguard charges a $20 account service fee per year. Some Vanguard clients with substantial account balances, or those who have at least $10,000 in their account, or who opt to have their statements and documents delivered electronically, are exempt from the service fee. To put it another way, it's not difficult to avoid paying this cost.
• Foreign Securities fee: A $50 foreign securities fee is charged if you buy a stock on a foreign exchange (rather than an American depositary receipt, or ADR).
• Outgoing wiring fee: Vanguard charges a $10 outgoing wire fee, which is actually quite inexpensive. Wire fees of up to $30 are not unusual. For investors with at least $1 million in Vanguard funds, this fee is waived.

E-Trade

• Minimum deposit: $0
• Fees: No recurring account fees or trade commissions
• Account types: Taxable brokerage, retirement, education, custodial, trust

Does E-Trade have fractional shares?

Although E-Trade offers fractional share purchases, investors can only access them through E-Trade's dividend reinvestment plan or robo-advisor solution.

E-Trade does not yet support fractional-share trading for equities and ETFs on the buy side, while fractional shares can be sold. Many users will have fractional-share positions because E-Trade offers a free DRIP service for both equities and ETFs.

A day order is required to sell a fractional share at E-Trade. A market or limit order can be utilized if the order totals more than one full share (let's say 1.084 shares, for example). A market order must be used for orders that are less than a whole share. The whole decimal quantity must be sold in any situation. A fractional share cannot be sold in part. E-Trade will only reinvest dividends in stocks or ETFs that are currently trading at or above $5 per share.

What is a Fractional Share?

A fractional share is a type of investment that represents a portion of a complete share. A fractional share brokerage would allow you to acquire 0.05 shares, or 5% of a single share if you wanted to buy a stock that costs $200 per share but only wanted to invest $10. Fractional shares are not offered by all brokerages, although they are becoming more frequent among big brokerages that allow online trading.

In the past, firms only issued full shares. Trading in full shares was also required by exchanges. In reality, for much of the stock market's history, investors were encouraged to buy and sell equities in 100-share lots.

Buying and selling less than 100 shares at a time became mainstream only with the introduction of internet brokers. Single shares are now often used in transactions. Fractional shares aren't a new concept. Numerous corporations used them in shareholder reinvestment schemes. Dividend reinvestment schemes allowed owners to use their dividends to buy more shares. Companies would hold fractional shares in their internal records since the dividend wasn't always enough to acquire a complete share.

Who Should Buy Fractional Shares?

Any investor can benefit from fractional shares. You won't have any excess cash in your brokerage account if you invest all of your money in stocks. With fractional shares, this is a lot easier.

The only real disadvantage is that monitoring fractional shares is more difficult than dealing in whole numbers like 100-share packages.

Investors who don't have enough money to acquire individual stocks can consider fractional shares. They not only let you invest in higher-priced companies that you couldn't normally buy, but they also allow you to distribute small sums of money across a greater number of stocks. This provides you access to a more diversified portfolio with lower risk than a single or two stock portfolio.

Are Fractional Shares a Good Investment?

Investors with a limited amount of money might benefit from fractional share investment. Certain firms' stock prices might be exceedingly high. Investors can participate in a company's growth by purchasing fractional shares rather than full shares.

Summary of Best Brokers For Fractional Share Investing

Even if you just have $5 to invest, apps like Robinhood don't have a monthly fee and allow you to acquire fractional shares of thousands of stocks.

If you wanted my professional financial advice, then fractional share investing is a great way for beginners to begin investing to meet investment objectives.

There are a few financial institutions and online brokerages that offer fractional share trading and dividend reinvestment plans like Robinhood, SoFi Invest, and Stash.

4.5	4.5	4.9
Robinhood’s fractional shares let you invest as little as $1, diversify your portfolio easily, reinvest dividends automatically, and trade commission-free on thousands of stocks and ETFs.	SoFi’s fractional shares let you invest as little as $5, trade commission-free, access thousands of stocks and ETFs, reinvest dividends, and diversify your portfolio easily.	Webull’s fractional shares let you invest with as little as $5, trade commission-free, access thousands of stocks and ETFs, and precisely diversify your portfolio.
Commission-free trades User-friendly interface Cryptocurrency access	Commission-free trades Fractional shares Access to IPOs	Commission-free trades Broad asset access Purchase as little as 0.00001 of a share
Open Account	Open Account	Open Account

4.5

Robinhood’s fractional shares let you invest as little as $1, diversify your portfolio easily, reinvest dividends automatically, and trade commission-free on thousands of stocks and ETFs.

• Commission-free trades
• User-friendly interface
• Cryptocurrency access

Open Account

4.5

SoFi’s fractional shares let you invest as little as $5, trade commission-free, access thousands of stocks and ETFs, reinvest dividends, and diversify your portfolio easily.

• Commission-free trades
• Fractional shares
• Access to IPOs

Open Account

4.9

Webull’s fractional shares let you invest with as little as $5, trade commission-free, access thousands of stocks and ETFs, and precisely diversify your portfolio.

• Commission-free trades
• Broad asset access
• Purchase as little as 0.00001 of a share

Open Account

Whether your strategy is to buy and sell fractional shares within a short-time frame or purchase fractional shares of stock for the long term — choose an investing app or a brokerage account that meets your needs.

Because fractional investing can be a really useful tool because it allows you to put 100% of your money to work while also allowing you to build a diverse portfolio without having a lot of money to invest.

For every investor, particularly novices and those on the bottom rungs of the economic ladder, fractional share investment is an essential instrument. When you're not obligated to buy at least one complete share of a high-flying company or fund, it's far easier to create and expand a diverse portfolio when you purchase fractional shares.

The Bottom Line

When your investable assets aren't enough to form a balanced portfolio, fractional share investing eliminates the temptation to choose equities, which is frequently a bad strategy for nonexperts.

This is something that all of these brokerages and investment applications understand. It might be time to create an account with one and start to invest in fractional shares.