Blog
Best brokers fractional shares

Best Brokerage for Fractional Shares and Stocks in 2024

Our editorial team uses a strict editorial review process to compile all reviews, research, and evaluations of any kind. Our company, WallStreetZen Limited, is supported by our user community and may receive a small commission when purchases are made through partner links. Commissions do not affect the opinions or evaluations of our editorial team.

Investing in your favorite stocks or ETFs doesn’t have to cost you hundreds or thousands of dollars.

With the invention of fractional shares, you can invest as little as $1 and buy stocks like Amazon, Google, or Microsoft, instead of trying to come up with a huge sum just to buy one share.

But here’s the thing. Not all brokers offer fractional shares; some might still require a high minimum investment. In this article, I’ll cut through the noise to find the best brokerage for fractional shares and stocks, including ones that have no extra fees and minimal investment requirements.

Here are the top 7 brokerages that offer fractional share investing:

Best Brokerage For Fractional Shares in 2024

The bottom line: There are several brokerages that offer commission-free fractional share investing, with the ability to buy stocks and ETFs for as little as $1. Here are some of the top ones:

  • M1 Finance is an all-around fantastic pick. It has the best selection and lowest minimums — and no fees for buying and selling stocks and ETFs.
  • Otherwise, the best platform depends on your specific needs. Platforms like eToro and Robinhood offer simple-to-use platforms and social trading features, while places like Charles Schwab and Betterment are aimed at long-term investors.

Let’s look at each platform’s specific features so you can figure out which one is best for you:

At-a-Glance: What Brokerages Offer Fractional Shares?

If you’re wondering what brokerages offer fractional shares, good news — a great many do. Here’s a sneak peek:

Broker
Fractional securities available
Fractional dividends?
Best for
NYSE & NASDAQ Stocks, ETFs
Yes
Social Trading
All stocks available on platform, ETFs
Yes
Pre-built Portfolios
Interactive Brokers
Stocks w/ $10 million average daily volume or $400 million+ market cap
Yes
Professional Traders
ETFs and stocks over $1/share that have $25 million + market cap
Yes
Low Fees
Charles Schwab
Companies in S&P 500 index
Yes
S&P 500 Investors
Must buy $5+ worth of shares
Yes
Active Traders
ETFs within your account (100% automated)
Yes
Automated Investing

Where Can I Buy Fractional Shares? 7 Top Platforms

1. eToro

  • Minimum investment: $10
  • Fractional dividends available: Yes
  • Securities available for fractional shares: Stocks, ETFs
  • Who it’s best for: Social trading / Copy trading

eToro offers access to stock and ETF trading with 0% commissions, and you can buy fractional shares of any of the stocks or ETFs on the platform.

You can choose from thousands of stocks and hundreds of different ETFs, and the minimum investment is only $10. And you can even earn dividends on those fractional shares that you own.

Image4

eToro also offers social trading and a CopyTrader feature, allowing you to follow the trades of popular traders on the platform.

You can sign up to your favorite trader, fund your account, and the platform will automatically execute trades that mirror exactly what the pro trader is doing. This lets you actively trade without needing to place trades yourself (fees and terms apply).

eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.

Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision.

Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.

Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more

eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.

2. M1 Finance

  • Minimum investment: $1
  • Fractional dividends available: Yes
  • Securities available for fractional shares: Stocks, ETFs
  • Who it’s best for: Investors interested in pre-built portfolios

M1 Finance is a popular investing app that offers commission-free investing in over 6,000 stocks and ETFs.

M1 Finance is a fractional shares brokerage that lets you invest as little as $1 on all stocks and ETFs. Dividends are paid out as well, and you can also choose to reinvest dividends back into your portfolio.

Image1

M1 Finance is famous for their “investing pies”, which are pre-made portfolios of ETFs and stocks, hand-picked by investment experts.

You can choose one that fits your investment style, and you can further customize it by adding or removing investments as you wish. M1 Finance lets you access stocks, ETFs, and now has crypto available as well.

3. Interactive Brokers

  • Minimum investment: $11
  • Fractional dividends available: Yes
  • Securities available for fractional shares: Stocks, ETFs
  • Who it’s best for: Professional traders

Interactive Brokers is a professional trading platform that offers access to fractional share trading, even on “penny stocks” (stocks valued under $5 per share) that many other platforms don’t offer. The minimum investment is only $1 or 0.001 shares, and you can purchase almost every U.S. stock or ETF on the market.

Important Note: You must enable fractional share investing on your Interactive Brokers account before you can make fractional share purchases.

Image2

Interactive Brokers has some of the most advanced trading tools, ideal for active traders. With access to thousands of charting tools and indicators and tens of thousands of securities, Interactive Brokers is a top trading platform used by professional traders and institutions around the globe.

4. Robinhood

  • Minimum investment: $1
  • Fractional dividends available: Yes
  • Securities available for fractional shares: Stocks, ETFs
  • Who it’s best for: Low fees

Robinhood is a popular stock and crypto trading app that offers commission-free trading and access to thousands of stocks and ETFs, as well as Bitcoin and a few other cryptocurrencies. You can invest as little as $1 in fractional shares in stocks and ETFs, and earn dividends as well.

Image7

Robinhood is known for being one of the first platforms with no commissions on trading, and in addition to stocks and ETFs, you can trade crypto and options, and even open a high-interest cash account.

Robinhood has received some negative news coverage due to the stoppage of trading high-volume meme stocks in the past, but it is still one of the lowest-fee trading platforms available.

5. Charles Schwab

  • Minimum investment: $5
  • Fractional dividends available: Yes
  • Securities available for fractional shares: Stocks
  • Who it’s best for: S&P 500 Investors

Charles Schwab is a longstanding investment firm with tens of millions of clients and access to a wide variety of investments in over a dozen asset classes.

Schwab now offers “Stock Slices,” which allows you to purchase as little as $5 in any of the companies in the S&P 500 index. These are the top 500 companies in the U.S., and Schwab lets you purchase up to 30 stock slices in a single transaction.

Image6

Schwab also pays out dividends on these fractional shares in proportion to your percentage of ownership of the stock. If you are interested in buying fractional shares of popular stocks in the S&P 500, Schwab offers a low-fee way of doing this. Read are stock slices worth it for more on this topic.

6. tastytrade

  • Minimum investment: $5
  • Fractional dividends available: Yes
  • Securities available for fractional shares: Stocks, ETFs
  • Who it’s best for: Active Traders

tastytrade (yes, that’s all lowercase) is a stock and derivatives trading platform that offers commission-free stock and ETF trading, and low fees on options and futures trading.

The platform is known for its industry-leading research and comprehensive trading tools for active traders. They also offer fractional shares on stocks and ETFs, allowing you to buy as little as $5 at a time.

Image3

tastytrade is best for active traders that want to take advantage of the advanced trading tools and live streaming analysis for stock trading.

There are some restrictions around fraction shares, such as market orders only, no after-hours trading, and there is a $0.10 fee per trade.

7. Betterment

  • Minimum investment: $10
  • Fractional dividends available: Yes
  • Securities available for fractional shares: ETFs
  • Who it’s best for: Automated investing

Betterment is a trusted robo-advisory service that offers automated investing and customizable portfolios geared toward long-term investors. Betterment allows you to choose an investment portfolio based on your age, goals, timeline, and risk tolerance, and will automatically put together a mix of low-cost ETFs to invest in.

Image5

When you make a deposit, your money is split between the selected ETFs, and you can purchase fractional shares with as little as $10.

Because Betterment is automated, you can’t buy individual stocks, and you can’t select specific ETFs. However, you can adjust the weight of your portfolio in each sector. Overall, Betterment is ideal for hands-off investors that want to invest small amounts into fractional shares of ETFs.

What is Fractional Share Investing?

Fractional share investing is the ability to purchase a small portion of a share of a stock or ETF.

Instead of purchasing a single share of a stock or fund, you simply choose a dollar amount, the investment platform will buy a portion of your selected stock or ETF.

If the stock or ETF pays out a dividend, you can also collect your portion of that income as well.

What Are the Best Stocks to Buy Fractional Shares?

Buying fractional shares makes investing in stocks and ETFs much more attainable, especially for stocks that have a high price per share.

Stocks like AutoZone Inc. (NYSE: AZO), Chipotle Mexican Grill Inc. (NYSE: CMG), and NVR Inc. (NYSE: NVR) all have a share price of over $2,000.

While buying a single share might be out of reach for many investors, fractional shares allow you to own small slivers of these stocks for as little as $1.

Final Word: Best Fractional Share Brokerage

Fractional share investing has made it so much easier to purchase your favorite stocks or ETFs without needing a huge amount of cash.

You can buy as little as $1 at a time, letting you build your investment portfolio even with your spare change. And most platforms don’t charge commissions or extra fees for using fractional shares. Just make sure you understand the limitations of your chosen platform before signing up to invest.


FAQs:

Which broker is best for fractional shares?

One of the best brokers for fractional shares is M1 Finance. They allow you to build your own portfolio of stocks and ETFs, and make purchases as little as $1. This gives you full control of your investments, as well as the ability to automate your investments into a pre-built portfolio with no additional fees.

Will TD Ameritrade do fractional shares?

While TD Ameritrade doesn’t currently offer fractional shares, it has been acquired by Charles Schwab. This means customers now have access to Schwab “Stock Slices,” allowing you to purchase fractional shares of S&P 500 stocks.

Do all brokers allow fractional shares?

Not all brokers allow fractional shares. While most major brokers are now allowing buying and selling of fractional shares of stocks and ETFs, this is not the case for all brokers. Make sure to check if your preferred broker offers fractional shares before signing up for an account.

Does Fidelity charge for fractional shares?

Fidelity offers fractional share investing at no extra charge. In fact, Fidelity does not charge any commissions or extra fees for trading stocks or ETFs on their platform, including buying and selling of fractional shares. There are also no account minimums or maintenance fees through Fidelity, making them one of the best low-cost brokerages around.

Where to Invest $1,000 Right Now?

Did you know that stocks rated as "Buy" by the Top Analysts in WallStreetZen's database beat the S&P500 by 98.4% last year?

Our June report reveals the 3 "Strong Buy" stocks that market-beating analysts predict will outperform over the next year.

Avatar photo

About the author

Jacob Wade

Contributor

Jacob is a nationally-recognized personal finance writer and has written for The Balance, The Spruce, LendingTree, Hedge With Crypto, Investopedia, Money Under 30, and other widely-followed sites. He is an expert in teaching others how to budget, save money, pay off debt, and invest, and loves to help others find the best ways to manage their money.