How to invest in partial stocks

## How to Invest in Partial Stocks

Fractional shares, also known as partial stocks, are a great way to invest in companies that you believe in, even if you don’t have a lot of money to invest. Fractional shares allow you to buy a portion of a share of stock, rather than having to buy a whole share. This makes it possible to invest in companies that have high stock prices, such as Amazon or Alphabet, without having to save up a lot of money.

There are a few different ways to invest in fractional shares. One way is to use a brokerage firm that offers fractional shares trading. Some of the most popular brokerage firms that offer fractional shares trading include:

* **Charles Schwab**
* **Fidelity Investments**
* **TD Ameritrade**
* **Vanguard**

Another way to invest in fractional shares is to use a fractional shares app. Fractional shares apps allow you to buy and sell fractional shares of stock through your mobile device. Some of the most popular fractional shares apps include:

* **Acorns**
* **Robinhood**
* **Stash**
* **Wealthfront**

When choosing a brokerage firm or fractional shares app, it is important to compare the fees and features of each platform. Some platforms may charge a fee for each fractional share trade, while others may offer unlimited fractional share trades for a monthly fee. It is also important to consider the minimum investment amount for each platform. Some platforms may require you to invest a minimum amount of money in order to open an account, while others may allow you to invest as little as $1.

Once you have chosen a brokerage firm or fractional shares app, you can start investing in fractional shares. To do this, you will need to create an account and fund it with money. Once your account is funded, you can search for the stock that you want to invest in and select the number of shares that you want to buy.

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Fractional shares are a great way to invest in companies that you believe in, even if you don’t have a lot of money to invest. Fractional shares allow you to buy a portion of a share of stock, rather than having to buy a whole share. This makes it possible to invest in companies that have high stock prices, such as Amazon or Alphabet, without having to save up a lot of money.

### Benefits of Investing in Fractional Stocks

There are several benefits to investing in fractional stocks, including:

* **Lower investment minimums:** Fractional shares allow you to invest in companies with high stock prices without having to save up a lot of money.
* **Diversification:** Fractional shares allow you to diversify your portfolio by investing in a wider range of companies.
* **Flexibility:** Fractional shares allow you to buy and sell stocks at any time, even if the stock market is closed.
* **Tax benefits:** Fractional shares are taxed the same as whole shares, so you can take advantage of the same tax benefits, such as the capital gains tax exclusion.

### Risks of Investing in Fractional Stocks

There are also some risks to consider before investing in fractional stocks, including:

* **Trading fees:** Some brokerage firms and fractional shares apps charge a fee for each fractional share trade. This can eat into your profits, especially if you are investing in a small number of shares.
* **Liquidity:** Fractional shares may not be as liquid as whole shares, which means that you may not be able to sell your shares quickly if you need to.
* **Volatility:** Fractional shares are subject to the same volatility as whole shares, so the value of your investment can fluctuate quickly.

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### How to Choose the Right Fractional Shares Platform

When choosing a fractional shares platform, it is important to consider the following factors:

* **Fees:** Some platforms charge a fee for each fractional share trade, while others offer unlimited fractional share trades for a monthly fee.
* **Minimum investment amount:** Some platforms require you to invest a minimum amount of money in order to open an account, while others allow you to invest as little as $1.
* **Available stocks:** Some platforms offer a wider range of stocks than others.
* **Features:** Some platforms offer additional features, such as automatic investing and fractional share lending.

It is important to compare the fees and features of each platform before choosing one. The best platform for you will depend on your individual needs and investment goals.

### Conclusion

Fractional shares are a great way to invest in companies that you believe in, even if you don’t have a lot of money to invest. Fractional shares allow you to buy a portion of a share of stock, rather than having to buy a whole share. This makes it possible to invest in companies that have high stock prices, such as Amazon or Alphabet, without having to save up a lot of money.

There are several benefits to investing in fractional stocks, including lower investment minimums, diversification, flexibility, and tax benefits. However, there are also some risks to consider, such as trading fees, liquidity, and volatility.

When choosing a fractional shares platform, it is important to consider the fees, minimum investment amount, available stocks, and features of each platform. The best platform for you will depend on your individual needs and investment goals.

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