What is fractional investing?

Fractional Investing enables investors to buy a fraction of a single stock or ETF. Investors may now buy a percentage of a single share which enables them to diversify their investments through the distribution of small amounts of capital. For instance, in the case of highly-priced FAANG stocks, a single stock can cost thousands of dollars. However, with fractional investing, you can purchase as little as 1% of the entire share. Fractional shares can be as small as 1/1000000 of a share and are traded in real-time in dollar amounts or share amounts.

Traditionally, fractional shares were available only during stock splits, dividend reinvestment plans (DRIPs) or other corporate actions. Today, leading brokerages enable investors to invest fractionally by intentionally splitting whole shares thereby making investing more affordable and accessible. Our SEC-regulated broker partner enables fractional investing on the platform for investors to buy as little as $10 worth part of a whole share.

With fractional investing, you have the flexibility to decide “how many dollars to invest” rather than “how many shares to buy”, and manage the risk and allocate capital efficiently.

Common Questions

1) Is fractional investing available for ETFs as well?

Yes. An ETF is a basket of securities that is traded on the stock exchange, just like a stock. Thus, it can be fractionally bought or sold as well.

2) Are all securities on your platform eligible for fractional investing?

Yes, currently - all stocks or ETFs on our platform are eligible for fractional investing.

3) Do I get dividends on fractional shares?
Yes, all fractional investors are eligible for dividends which are calculated based on the percentage of the share you hold

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