5 Best Brokers for Investing in Fractional Shares

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If you’d like to get started with investing or easily diversify your portfolio, purchasing fractional shares can be a good alternative to buying full stocks and exchange-traded funds. Typically, you can buy parts of shares in major companies with minimum purchase requirements as low as $1 to $5. Finding the best brokerage that supports fractional shares, minimizes fees and has accessible requirements will be important. Here are some of the best brokers to consider.

1. Fidelity

Fidelity is one of the country’s biggest traditional brokerages. Its Stocks by the Slice feature lets you buy fractional shares with just a $1 minimum purchase, with no commissions and no minimum account balance. You get variety with over 7,000 domestic ETFs and stocks to choose from and support for limit and market orders. 

Fidelity also offers plenty of educational resources for beginner and experienced investors through its website and mobile app.

2. Robinhood

Robinhood offers online commission-free investment services and is especially known for its intuitive mobile app. It allows you to buy ETFs and stocks at a minimum of one millionth of a share. Qualifying stocks must have both a $1 minimum value and market capitalization exceeding $25 million. 

You can place market orders either in shares or dollars. There’s no minimum account balance required.

3. Charles Schwab

Charles Schwab is another major traditional brokerage with a long-standing reputation. Requiring a minimum purchase of $5, the Schwab Stock Slices feature gives you access to fractional shares of any S&P 500 stock, such as Apple, Target and Amazon. 

You can place market orders for up to 30 fractional shares at once for diversification. The brokerage features no minimum balance requirements or commissions on online trades.

4. Interactive Brokers

Ideal for experienced investors, Interactive Brokers is a large online brokerage that offers both commission-free Lite accounts and fee-based Pro accounts. It features more than 10,500 fractional share options, including ETFs, stocks and American depository receipts. European and Canadian investments are options among these. 

You can place a wide range of order types with minimum purchases of either $1 or 0.0001 share. Besides not requiring a minimum balance for Lite account holders, this brokerage stands out for allowing fractional share short sales for those eligible.

5. Webull

As the newest online investment platform on this list, Webull is known for its extensive trading tools. You can place market orders for fractional shares of eligible domestic ETFs and stocks on the platform without paying a commission. Its minimum purchase amount is set at $5 and 0.0001 shares, and there is no account minimum balance.

Webull also stands out for its frequent promotions that reward you with free fractional shares for making a minimum deposit within a certain period after opening an account.

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