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Fractional stocks allow investors to purchase stocks or ETFs in almost any amount. This means you don’t have to wait until you can afford to buy expensive stocks like Costco or Meta and add them to your portfolio.
The ability to buy fractional stocks for just $1 for just $1 is attractive, especially for investors and investors with a more modest budget. Additionally, dollar cost averaging is easier to use.
These online stock brokers allow you to trade fractional shares. This is what you need to know.
The best online broker to buy fractional shares:
Top Online Brokers for Buying Fractional Stocks
Charles Schwab
Charles Schwab’s stock slices allow investors to buy fractional shares of stocks in the Standard & Poor’s 500 index for $5. Customers can purchase up to 30 slices at a time. Additionally, just like regular stock trading, you can trade without any fees. Dividends from stocks can be reinvested into fractional shares of the same stock.
- Fractions Purchase: yes
- Reinvestment of fractional dividends: yes
- Program securities: ~500, including all the S&P 500 strains
A loyal investment
Fidelity is a daily top candidate among brokerages, and not surprising, it has a way of buying fractional shares that call stocks by slices. Starting at just $1, you can buy over 7,000 shares and ETF shares listed on US exchanges. The online US Stocks and ETF Trading Commission can also buy zero shares. Also, whether it’s a stock or an ETF, you can reinvest dividends in more stocks, and even partial stocks.
- Fractions Purchase: yes
- Reinvestment of fractional dividends: yes
- Program securities: Over 7,000 shares and ETFs
Interactive broker
Long known as a powerful alternative for professional and active traders, interactive brokers have offered fractional stocks, a boon for investors without deep pockets. You can purchase fractional shares on the broker’s Pro platform (cost: $1 or tiered rate for broker) or on the Lite platform where trades are free. The downside here is that reinvesting dividends costs Protia’s standards committee, but it’s free in Lite Tier. However, stocks with a low daily volume and market capitalization may not be available. Also, qualifications: ETFs, foreign stocks traded as American Deposit Receipts (ADRs), Canadian Stocks and ETFs, and European Stocks.
- Fractions Purchase: yes
- Reinvestment of fractional dividends: yes
- Program securities: Over 11,000 shares, ETFs, ADRs
Robin Hood
Robinhood has long been known for its commission-free trading (also extends to options), but it also allows you to buy the smallest percentage of your share. Yes, you can buy a hundredth of your favorite stocks and also buy a wide variety of stocks. With share trading in excess of $1 per share and market capitalization in excess of $25 million, it is covered by the program, with ETFs available for fractional shares as well. You can also reinvest your dividends in fractional shares, but you must first enable the fractional feature.
- Fractions Purchase: yes
- Reinvestment of fractional dividends: yes
- Program securities: Thousands of ETFs and stocks exceeding volume and size thresholds
Firestride
Firstrade offers stock and ETF trading without regular fees, as well as fee-free options trading. That fractional share program includes over 4,000 shares and ETFs available for just $5. Additionally, brokers provide the ability to reinvest dividends into partial stocks.
- Fractions Purchase: yes
- Reinvestment of fractional dividends: yes
- Program securities: Over 4,000 shares and ETFs are available
Vanguard
Vanguard allows fractional stock investments only in its own ETFs, not in stock or non-Vanguard ETFs. Brokers can reinvest dividends in stocks, ETFs and mutual funds. However, Vanguard will not reinvest in certain low-capacity stocks, some US stocks, and all foreign stocks.
- Fractions Purchase: Vanguard Mutual Funds and ETFs only
- Reinvestment of fractional dividends: yes
- Program securities: Stocks, ETFs, mutual funds
Tastytrade
Tastytrade is one of the best brokers for short-term traders, but adding fractional shares to both purchases and dividend reinvestment makes it a more interesting option for long-term investors as well. There is a minimum purchase requirement of $5, and all fractional share transactions will incur a clearing fee of $0.10 per transaction.
- Fractions Purchase: yes
- Reinvestment of fractional dividends: yes
- Program securities: Thousands of Stocks and ETFs
Sofi Active Investing
SOFI Active Investing is one of the best brokers at low cost, and its leadership also expands to fragmented stocks. SOFI allows you to purchase fractional shares directly for a minimum of $5 and reinvest your dividends in split shares. To reinvest dividends, the stock must be above $4 per share. This includes most US stocks and foreign stocks traded on US exchanges.
- Fractions Purchase: yes
- Reinvestment of fractional dividends: yes
- Program securities: Over 4,000 shares and ETFs
Wavestride
WellStrade took part in the fraction sharing game in late 2023 with the launch of share fractions. WellStrade allows investors to choose the stocks and funds to reinvest their dividends on an individual basis. Brokers can purchase new shares with dividends, but they cannot automatically purchase partial shares.
- Fractions Purchase: yes
- Reinvestment of fractional dividends: no
- Program securities: Hundreds of stocks and ETFs
e-trade
e-trade does not allow investors to purchase partial shares of the stock, but the split can be reinvested into fractional shares as long as the shares or ETF is in a transaction of more than $5 per share. However, E-Trade allows you to set up automated investments in ETFs and mutual funds for just $25. This means that you can acquire fractional shares with these securities.
- Fractions Purchase: no
- Reinvestment of fractional dividends: yes
- Program securities: Thousands of stocks and ETFs may have dividends reinvested
Meryl Edge
Merrill Edge is another broker that allows dividend reinvestment of fractional shares, but does not allow clients to purchase stock directly. Merrill allows investors to reinvest dividends from stocks, ETFs and mutual funds. Online selection allows you to quickly set whether each security in your portfolio will be reinvested. Change your mind and you can easily make a choice later.
- Fractions Purchase: no
- Reinvestment of fractional dividends: yes
- Program securities: Thousands of stocks, ETFs, mutual funds