With Stash, an investment app, you can invest in fractional shares for as little as $1.
They also have budgeting and savings tools, low monthly payments instead of percentages, etc.
You can purchase fractional shares of exchange-traded funds (ETFs – a bundle of investments that trades on an exchange, like a stock) and some single stocks.
With Charles Schwab, you can invest in what they call stock slices.
These let you invest in any stock in the S&P 500 but don’t allow fractional ETF investing.
You can invest for as little as $5 each, up to 10 companies, commission-free.
This feature is available in retail Schwab brokerage, custodial, and individual retirement accounts (IRAs).
Plus, clients using the service will be able to trade shares in real-time throughout the trading day using market orders.
You can even give these fractional shares to children or grandchildren with a custodial account (a financial account set up for the benefit of a beneficiary, and administered by a legal guardian or custodian, who has a fiduciary obligation to the beneficiary).
M1 Finance also offers fractional share investing.
Here, there’s no commission for buying and selling fractional shares, and they will trade at the market price of a full share.
This also comes with a dynamic rebalancing algorithm which uses fractional shares to maintain your portfolio positions more closely aligned to their target allocations.
Also, you can purchase as little as 1/10,000th of a share of any stock or ETF that trades on the platform.
Another well-known investment service with stocks by the slice is Fidelity.
They offer fractional investing for 7,000 U.S. stocks and ETFs.
You can get started with $0 commissions for online US stock and ETF trades, and no account fees or minimums to open a retail brokerage account.
Trade US stocks and ETFs for as little as $1.00 and with no dollar maximum per order.
Fractional share investing comes with Fidelity retail accounts including brokerage, IRAs, and HSAs, as well as BrokerageLink® accounts offered through some workplace plans.
Also, all trades are executed real-time during market hours, so you’ll always know your share price.
You can also invest in fractional share with SoFi, a mobile-first personal finance service.
SoFi offers 43 stocks and ETFs as fractional investments.
You can invest with as little as $1 with zero trading fees to buy and sell Stocks Bits (their name for fractional shares).
You can sell a fraction of a Stock Bit for any amount you’d like, but the smallest denomination they support is 5 decimal places (0.00005, for example).
But, keep in mind that if the sell price is less than a penny, it won’t work.
And then we have Robinhood.
Robinhood lets you buy fractional shares of stocks and ETFs with a market capitalization (the value of a company that is traded on the stock market, calculated by multiplying the total number of shares by the present share price) of $25 million that trade for at least $1.
Fractional shares on Robinhood can be as small as 1/1,000,000 of a share, and trading fractional shares is real-time and commission-free.
You can also place fractional share orders in either dollar amounts or share amounts.
All purchases will be rounded to the nearest penny.
Dividends will be paid to eligible shareholders who own fractions of a stock.
And of course, dividend payments will be split based on the fraction of the stock owned, then rounded to the nearest penny.
Also, as with many of the other services, you won’t be able to transfer fractional shares.
This means if you initiate a full asset transfer out of Robinhood, your fractional shares will be sold and you’ll receive the resulting cash back.
If you initiate a partial asset transfer, any fractional shares you own will remain in your Robinhood Securities account as fractional shares.
The only thing about Robinhood is they've been surrounded in controversy for a while now.
Do your research on Robinhood first
Disclaimer: I'm NOT a certified financial advisor, nor do I claim to be. Please consult one before applying any of the strategies in this post.
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