Introduction:

Fractional share investing has become increasingly popular among investors due to its ability to provide affordable access to high-priced stocks and diversify portfolios. Choosing the right broker for fractional share investing is crucial, as fees, investment options, and user experience can vary significantly between platforms. In this article, we will explore some of the best brokers for fractional share investing to help you make an informed decision.

1. Robinhood

Robinhood is a leading online brokerage that has made fractional share investing accessible for all. With a user-friendly mobile app and no account minimums or trading fees, Robinhood is perfect for new investors looking to dip their toes into fractional investing. You can buy as little as 1/1000000th of a share in thousands of stocks and ETFs, and the platform also supports cryptocurrency trading.

2. Fidelity

Fidelity is a well-established brokerage firm known for its broad range of investment services. It offers fractional shares trading on US stocks and ETFs with a minimum investment amount of $1. Clients can access Fidelity’s advanced trading tools, research materials, and excellent customer service while enjoying a commission-free experience on stock and ETF trades.

3. Charles Schwab

Charles Schwab’s Stock Slices™ program allows clients to purchase fractions of US-listed S&P 500 stocks, starting with just $5 per slice. With no account minimums or trading fees for stock slices purchases, it’s an attractive option for those looking to start with modest investments and gradually build their portfolios over time.

4. Interactive Brokers

Interactive Brokers (IBKR) offers fractional shares trading on over 7,000 US stocks and ETFs through its IBKR Lite platform. Clients can also access global markets in addition to advanced research tools and technology at a competitive cost structure. IBKR Lite users enjoy commission-free trades on US stocks and ETFs with no account minimum required.

5. SoFi Invest

SoFi Invest is a mobile-first investment platform that allows users to trade fractional shares, known as Stock Bits. With no account minimums and zero fees for trades, SoFi Invest is ideal for novice investors looking for a simple way to start investing in fractions of stocks andETFs. Additionally, users have access to a range of financial planning tools and educational resources to help them on their investment journey.

Conclusion:

Fractional share investing enables individuals to build diversified portfolios without breaking the bank. The top brokers for fractional share investing, including Robinhood, Fidelity, Charles Schwab, Interactive Brokers, and SoFi Invest, offer various features suited to different investor needs. By choosing the right brokerage platform, you can enjoy a user-friendly experience while taking advantage of the many benefits that fractional share investing has to offer.