Best Fractional Share Investing Sites

M1 Finance is the juggernaut of the new investing app world. It offers many of the same investing options as traditional investing firms, along with new options and sleek social aspects that are common to the new crop of investing apps. This includes fractional shares, which it is one of the best at. Here is a more detailed look at the investing site.

Acorns makes investing extremely easy. The app connects to your financial institutions and sweeps the change from your purchases into an investment account. Say you spend $4.55 on coffee; Acorns will add the extra 45 cents to your investment account. It makes investing very easy and mindless, which is helpful since investing can be so confusing. With fractional shares, Acorns makes it even easier to not only mindlessly invest, but to invest in companies that you believe in, no matter how expensive the whole share price. Here’s a detailed look at Acorns.

Betterment is the elder statesman of this group of investing sites, which is saying something since Betterment is fairly new on the scene itself. The investing option isn’t as nimble as the other sites mentioned, and it charges fees that the competition doesn’t, but it also knows investing and can produce better advice and dividends than some of the new crop of investing apps. Here’s our review of Betterment.

Public is a little more limited than many of its competitors, especially since it does not offer an automated investing portfolio option. That being said, it generally doesn’t matter when it comes to fractional shares, since you are buying partial shares in companies one at a time. This does mean that you will have to keep track of your investments instead of letting a robo-advisor have control, but if you prefer it that way, Public is a good option for you. Here is more information about how Public works.

Never invested before? Need help getting started? Stash is the perfect app for those who have never invested and are afraid to start. It’s simple. You download the app, connect it to your financial accounts, and it will sweep those accounts, rounding your purchases to the nearest dollar and using the change to fund micro-investments in your account through fractional shares. You can start an account for $5, making it one of the easiest investing options available.

What Are Fractional Shares?

Fractional shares are a fraction of a share in a company or an ETF. These shares allow people to invest who may not have had enough money to invest in the past.

What Can You Do With Fractional Shares?

Fractional shares allow you to invest with smaller sums of money than traditional investing would allow. It gives people who don’t have hundreds or thousands to invest the ability to put away as low as $1 at a time. They function in a similar way to whole shares in that you can buy and sell them, but there are limitations when it comes to transferring shares, and not all share are eligible for fractional shares.

How Much Does Investing in Fractional Shares Cost?

The great thing about fractional shares is that most companies don’t charge a commission for fractional trades, which are charged on full share trading. This makes it a cost-effective way of investing for those who don’t have a lot of money.

You can also invest in fractional shares for as little as $1, which makes investing more accessible to those who may not have been able to invest in the past.

Can You Make Money With Fractional Shares?

Yes. Fractional shares work in much the same way as whole shares when it comes to making money. Dividends are paid in much the same way that whole shares are paid, and you can sell your fractional shares whenever you need to. Keep in mind that if you sell when the markets are not open, some sites may wait to sell until the markets open and will use the stock price at that time.

How Small Are the Fractional Shares?

This depends, but some investing firms will allow you to buy as low as 1/1,000,000 of a share, especially for companies whose shares are really expensive. Most companies, however, deal in thousandths or even ten-thousandths of a share.

Are Fractional Shares Available for All Stocks?

There are limitations when it comes to fractional stocks, and not all investing firms allow every stock to be split up. Stocks that are lower than $1, for example, generally aren’t eligible for fractional shares since most companies have a minimum investment of $1 for fractional shares. Some companies put limitations on stocks of companies with low market capitalization.

Bottom line: Check with the investment site about the rules before you sign up.

Who Allows Fractional Shares?

There are only a few investing firms that now allow fractional shares, although many of the larger investment firms are now starting to pick up on the trend. Here is a list of the best fractional shares investing sites that we recommend:

• M1 Finance
• Acorns
• Betterment
• Public

What Is the Minimum Amount of Share You Can Buy?

This depends on the price of the whole stock. Most fractional share investing sites will allow you to invest for as little as $1. The fraction of share that dollar will get you depends on how much the whole share stock price is. For example, if the whole share stock price is $100, a dollar will get you 1/1o0 of a share.

Can I Transfer My Shares?

No. Most investing sites will sell your fractional shares before you transfer your investments from one investing company to another. If you want to keep your fractional shares, you can do a partial asset transfer to move other investments and leave your fractional shares.