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.

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