Best Fractional Share Investing Platforms: Start Investing with Just $1
Introduction
Investing in the stock market no longer requires a hefty sum. Thanks to fractional share investing, you can now buy portions of high-priced stocks like Amazon or Tesla with just a few dollars. This makes investing more accessible to beginners, young investors, and those who want to diversify their portfolio without committing large amounts of money.
In this guide, we'll cover the best fractional share investment platforms, their features, fees, and how they can help you build wealth over time.
What is Fractional Share Investing?
Fractional share investing allows you to buy a portion of a stock instead of a full share. This is especially beneficial for expensive stocks that may be out of reach for small investors. Instead of buying a full share of Amazon for over $3,000 (at the time of writing), you can invest as little as $10 in a fraction of the stock.
Benefits of Fractional Shares:
Affordable Entry – Invest with as little as $1.
Diversification – Spread your money across multiple stocks and ETFs.
Reinvestment – Automatically reinvest dividends into fractional shares.
Easy Access – Available on popular investing apps.
Best Fractional Share Investment Platforms
1. Robinhood – Best for Commission-Free Trading
Key Features:
$1 minimum investment.
Commission-free trades.
Easy-to-use mobile app.
Supports stocks, ETFs, and crypto.
Why Choose Robinhood?
Robinhood is a beginner-friendly investment app that allows you to buy fractional shares with no trading fees. Its simple interface makes it ideal for new investors.
2. M1 Finance – Best for Automated Investing
Key Features:
Invest with as little as $5.
Commission-free investing.
Automated portfolio management.
Custom investment “Pies” for diversification.
Why Choose M1 Finance?
M1 Finance is perfect for hands-off investors who want to automate their portfolio. You can create a customized portfolio or use expert-designed portfolios to grow your investments.
3. Public.com – Best for Social Investing
Key Features:
$1 minimum investment.
No commissions.
Social investing features to learn from others.
No payment for order flow (PFOF).
Why Choose Public.com?
Public.com is great for investors who enjoy a social aspect to investing. You can see what others are buying, learn from experts, and build a diversified portfolio with fractional shares.
4. Fidelity – Best for Long-Term Investors
Key Features:
$1 minimum investment.
No commissions on stocks and ETFs.
Industry-leading research and educational tools.
Great for retirement and wealth-building.
Why Choose Fidelity?
Fidelity offers fractional share investing along with comprehensive research tools, making it an excellent choice for serious investors planning for the long term.
5. Charles Schwab – Best for Traditional Investors
Key Features:
$5 minimum investment.
No trading fees.
Strong research and trading tools.
Access to retirement and taxable accounts.
Why Choose Charles Schwab?
For investors who prefer a traditional brokerage with modern features, Schwab offers fractional shares and extensive research tools to help you make informed decisions.
6. Stash – Best for Beginner Investors
Key Features:
Invest with as little as $5.
Automated investing options.
Educational content for beginners.
Cash-back rewards on spending.
Why Choose Stash?
Stash is a great choice for new investors who want guidance. The platform provides educational content and easy-to-use investment tools to help users build confidence in investing.
7. SoFi Invest – Best for No-Commission Investing
Key Features:
No minimum investment for fractional shares.
No commission fees.
Automated and self-directed investing.
Access to financial advisors.
Why Choose SoFi Invest?
SoFi Invest is an excellent option for those looking for a zero-fee investment platform with both automated and hands-on investment options.
How to Choose the Best Fractional Share Investing Platform
When selecting a fractional share investment platform, consider the following:
Fees & Commissions – Look for platforms with zero or low trading fees.
Investment Minimums – Some platforms let you start with $1, while others require $5 or more.
Automation & Features – If you prefer a hands-off approach, platforms like M1 Finance offer automated investing.
Educational Tools – New investors may benefit from apps like Stash and Fidelity that provide learning resources.
Account Types – Some platforms support retirement accounts (IRAs), while others focus on taxable brokerage accounts.
FAQs on Fractional Share Investing
1. What is the best platform for fractional share investing?
The best platform depends on your needs. Robinhood is great for commission-free trading, M1 Finance is ideal for automation, and Fidelity offers top-tier research tools.
2. Can I make money with fractional shares?
Yes! Fractional shares allow you to invest in high-quality stocks and ETFs, earning dividends and capital gains over time.
3. Are there any risks to fractional investing?
Like any stock market investment, fractional shares carry risks. However, they help reduce risk by enabling diversification with smaller investments.
4. Can I sell fractional shares anytime?
Most platforms allow you to sell fractional shares at any time, just like full shares. However, some may have restrictions on after-hours trading.
5. Do fractional shares pay dividends?
Yes! If a stock or ETF pays dividends, you’ll receive a proportionate amount based on your fractional share ownership.
6. Are fractional shares good for beginners?
Absolutely! Fractional shares allow beginners to start investing with small amounts, making it easier to build a diversified portfolio.
7. Which platform has the lowest fees?
Robinhood, M1 Finance, and Public.com offer commission-free investing, making them some of the most cost-effective options.
8. Can I invest in ETFs with fractional shares?
Yes, most platforms allow fractional investing in ETFs as well as individual stocks.
Final Thoughts
Fractional share investing has made the stock market more accessible than ever. Whether you’re a beginner looking to invest with just a few dollars or an experienced investor seeking portfolio diversification, these platforms provide excellent opportunities to grow your wealth.
By choosing the right platform based on fees, features, and investment goals, you can start building a profitable investment portfolio today.
CTA: Start Your Investment Journey Today!
Ready to start investing with just $1? Choose one of the best fractional share investment platforms and begin growing your wealth. Whether you prefer hands-on trading or automated investing, there’s a platform that fits your needs. Sign up today and take your first step toward financial freedom!
