What Are Fractional Shares?

A fractional share is exactly what it sounds like: a fraction of a single stock share. Instead of buying one full share of Amazon at $180+, you invest $10 and own 0.055 shares. You get proportional dividends, proportional price appreciation, and proportional voting rights (on some platforms).

This matters because many top companies trade at $100-$500+ per share. Without fractional shares, a college student with $50 to invest couldn’t own Apple, Google, Amazon, or Tesla. Fractional shares democratize investing—you invest what you can afford, regardless of share price.

How We Tested These Apps

I opened accounts on all 6 platforms with $100 each. I purchased fractional shares of the same 5 stocks (Apple, Amazon, Google, Tesla, Microsoft) on every platform to directly compare execution quality, fees, and user experience. Testing period: 4 weeks of active use.

What I measured: Minimum investment, trading fees, available stocks for fractional purchasing, execution speed, dividend handling, mobile app quality, and educational resources.

Top 6 Fractional Shares Apps Ranked

1. Fidelity — Best Overall for Fractional Shares

Minimum: $1 | Fees: $0 | Available: 7,000+ stocks and ETFs

Fidelity offers the largest selection of fractional shares—7,000+ US stocks and ETFs available in fractions as small as $1. Zero commissions, zero account fees, zero hidden costs. The execution quality was the best I tested: orders filled within seconds at competitive prices.

What sets it apart: Fidelity also offers fractional shares in mutual funds and lets you set up automatic recurring fractional purchases. The Fidelity Go robo-advisor uses fractional shares to build fully diversified portfolios from as little as $10.

Pros:

• Largest fractional shares selection (7,000+ stocks and ETFs)
• Zero fees across the board
• Automatic recurring fractional purchases
• Fractional shares in mutual funds too
• Industry-leading educational resources

Cons:

• Mobile app less modern than Robinhood
• Can be overwhelming for complete beginners
• Fractional shares can’t be transferred to other brokers

Open Fidelity Account

2. M1 Finance — Best for Automated Portfolio Building

Minimum: $1 | Fees: $0 | Available: 6,000+ stocks and ETFs

M1 Finance’s “pie” system automatically divides your investment across multiple fractional shares based on your target allocation. Invest $100, and it splits into $30 of Apple, $30 of Microsoft, $20 of an S&P 500 ETF, and $20 of a bond ETF—all fractional, all automatic.

Pros:

• Automated fractional share purchasing via “pies”
• Auto-rebalancing maintains your target allocation
• Zero fees and commissions
• Tax-loss harvesting built in

Cons:

• One trading window per day (no intraday trading)
• Pie concept has a learning curve
• No options or crypto trading

Open M1 Finance Account

3. Robinhood — Best for Active Fractional Share Trading

Minimum: $1 | Fees: $0 | Available: Most US stocks and ETFs

Robinhood makes fractional share trading effortless. Type “$5,” select Apple, tap buy. Done. The interface removes all friction. For active traders who want to build positions gradually—say, buying $10 of Tesla every week—Robinhood’s simplicity is unmatched.

Pros:

• Simplest fractional share buying experience
• Real-time fractional share execution
• Recurring investment scheduling
• Extended hours trading available

Cons:

• Payment for order flow concerns
• Minimal educational resources
• Gamified interface can encourage impulsive trading

Open Robinhood Account

4. Charles Schwab — Best for Long-Term Investors (Schwab Stock Slices)

Minimum: $5 | Fees: $0 | Available: S&P 500 stocks only

Schwab Stock Slices lets you buy fractional shares of any S&P 500 company for as little as $5. The limitation? Only S&P 500 stocks—no ETFs, no small-caps, no international stocks. But for long-term investors focused on blue-chip companies, it’s excellent.

Pros:

• Backed by one of the most trusted brokerages in the world
• Buy up to 30 Stock Slices in a single transaction
• Zero commissions
• Excellent customer service and physical branches

Cons:

• $5 minimum (higher than competitors’ $1)
• Limited to S&P 500 stocks only—no ETFs
• No automatic recurring fractional purchases

Open Schwab Account

5. SoFi Invest — Best for Beginners

Minimum: $1 | Fees: $0 | Available: Most US stocks and ETFs

SoFi’s Stock Bits feature makes fractional shares feel approachable. The guided onboarding walks you through your first fractional purchase step by step. The hybrid model (robo-advisor + manual trading) lets beginners start passive and gradually try fractional share picking.

Pros:

• Best onboarding experience for first-time investors
• Free robo-advisor uses fractional shares automatically
• $1 minimum with zero fees
• Financial planning tools included

Cons:

• Smaller stock selection than Fidelity
• No tax-loss harvesting
• Limited research tools for active traders

Open SoFi Invest Account

6. Webull — Best for Technical Traders

Minimum: $1 | Fees: $0 | Available: Most US stocks

Webull added fractional shares to its already powerful trading platform. If you want professional-grade charting tools alongside fractional share investing, Webull is the pick. The paper trading feature lets you practice with virtual money before committing real dollars.

Pros:

• Advanced charting and technical analysis tools
• Paper trading with virtual money
• Extended trading hours (4am-8pm)
• $1 fractional minimum, zero commissions

Cons:

• No automated fractional share investing
• Fractional ETF selection is limited
• Steeper learning curve for beginners

Open Webull Account

Side-by-Side Comparison

How Fractional Shares Work (With Examples)

Example: Amazon trades at $180 per share. You have $10 to invest.

• You buy $10 worth of Amazon = 0.0556 shares
• Amazon rises 10% to $198 per share
• Your 0.0556 shares are now worth $11.00
• You made $1.00 profit (same 10% return as a full-share investor)

Dividends work proportionally too: If Amazon pays a $1.00 dividend per share, you receive $0.0556 (proportional to your fractional ownership). Most platforms automatically reinvest fractional dividends into more fractional shares.

The technical reality: When you buy a fractional share, your broker purchases whole shares and allocates fractions to customers. You own real equity—not a derivative or IOU. Your fractional shares are protected by SIPC insurance up to $500,000, just like whole shares.

Benefits & Risks of Fractional Share Investing

Benefits:

• Access expensive stocks: Own pieces of Amazon, Google, Berkshire Hathaway without needing thousands
• Better diversification: Spread $100 across 20 stocks instead of buying 1 full share of a cheaper stock
• Dollar-cost averaging: Invest fixed dollar amounts on a schedule regardless of share price
• Lower barrier to entry: Start with $1, not $500+
• Proportional dividends: Earn income even on small positions

Risks:

• Non-transferable: Most fractional shares can’t be transferred between brokerages—you must sell and repurchase
• Limited order types: Some platforms only allow market orders for fractional shares (no limit orders)
• Liquidity concerns: Selling fractional shares may take slightly longer during high volatility
• Tax complexity: Many fractional positions = more tax lots to track when selling

Who Should Invest in Fractional Shares?

The College Student

Budget: $10-$100/month | Best app: Robinhood or M1 Finance

Fractional shares let you build real investment habits with real money, even on a tight budget. $25/month split across 5 stocks teaches diversification with skin in the game.

The Beginner Investor

Budget: $100-$500/month | Best app: Fidelity or SoFi

Start with fractional shares of well-known companies you understand. As you learn, expand into ETFs and less familiar sectors. Fidelity’s educational resources accelerate your learning.

The Dollar-Cost Averager

Budget: Fixed weekly/monthly amount | Best app: M1 Finance

If you invest $200 every two weeks regardless of market conditions, fractional shares ensure every dollar is fully invested. M1’s auto-invest feature handles this perfectly.

FAQ: Fractional Shares

Q1: Do I earn dividends on fractional shares?

A: Yes. You earn proportional dividends. If you own 0.5 shares and the dividend is $1/share, you receive $0.50. Most platforms offer automatic dividend reinvestment (DRIP).

Q2: Can I transfer fractional shares to another broker?

A: Generally no. Most brokerages don’t accept incoming fractional share transfers. You’d need to sell (triggering a taxable event), transfer cash, and repurchase at the new broker. This is a meaningful limitation.

Q3: Are fractional shares taxed differently?

A: No. Fractional shares follow the same tax rules as whole shares: short-term gains (held less than 1 year) taxed as ordinary income, long-term gains (held 1+ years) taxed at lower capital gains rates. The complexity comes from having many small tax lots to track.

Q4: Are fractional shares protected by SIPC?

A: Yes. Fractional shares held at SIPC-member brokerages are protected up to $500,000 (including $250,000 for cash) if the brokerage fails. All 6 apps on this list are SIPC members.

Q5: What happens if a stock I own fractional shares of splits?

A: Your fractional position adjusts proportionally. If you own 0.5 shares and the stock splits 2:1, you’ll own 1.0 share. If it’s a 3:1 split, you’ll own 1.5 shares.

Q6: Can I vote with fractional shares?

A: Policies vary by broker. Fidelity and Schwab allow proxy voting for fractional shareholders. Robinhood does not. Check your specific platform’s policy.

Q7: What’s the minimum investment for fractional shares?

A: Most platforms allow $1 minimum (Fidelity, M1 Finance, Robinhood, SoFi, Webull). Schwab requires $5 minimum for Stock Slices.

Final Verdict: Best Fractional Shares App

Fidelity wins overall with the largest selection (7,000+ stocks and ETFs), zero fees, automatic recurring purchases, and industry-leading education. It’s the most complete fractional shares platform available.

M1 Finance is the runner-up for anyone who wants automated portfolio building. The pie system with fractional shares is elegant and hands-off.

Robinhood is best for simplicity—if you just want to buy $5 of Apple right now with zero friction, nothing beats it.

The truth? All 6 apps charge $0 in fees for fractional shares. The differences are in selection, automation, and user experience. Pick the one that matches your investing style and start with $1. The best app is the one you actually use consistently.

Recommended Investing Books

• The Intelligent Investor by Benjamin Graham — The timeless classic on value investing
• I Will Teach You to Be Rich by Ramit Sethi — Practical investing for younger investors
• A Random Walk Down Wall Street by Burton Malkiel — Why index investing beats stock picking