One of the advantages of using Webull is that you can buy fractional shares. This post will show you how.
What are Fractional Shares?
A fractional share is less than a full share in a company.
In other words, it’s a fraction of a share.
Fractional Share trading gives you the ability to purchase an equity position with a quantity of less than one whole share. Instead of having to buy a security in full share increments, this allows you to purchase a piece of stock for an amount that you feel comfortable with. Webull offers fractional shares for most stocks and ETFs that are available on our platform.
Why do people trade fractional shares?
There are many high-priced stocks that are trading for hundreds and even thousands of dollars per share. Someone with a limited amount of capital may have difficulty choosing which investments make sense for them. Fractional share investing eliminates this constraint by allowing you to invest with as little as $5. The ability to purchase fractional shares lowers the barrier of entry into the stock market which creates opportunities for investors at every level.
To maybe extrapolate this a bit, for people with a limited budget to invest, but want to construct their own diversified portfolios (based on the stocks that they are interested in), this is made possible by purchasing fractional shares.
For example, the current price of an Apple Inc Stock (APPL), at the time of writing cost US$151.03 (S$203.17). This may be too high a price for some retail investors. They can instead choose to buy 0.1 shares at US$15.10 or even 0.01 shares at US$ 1.51.
Fractional shares also make it easier for people to invest the desired amount in a company’s stock.
Another advantage of Webull is that trading Stocks, ETFs, and Options on Webull are commission free, except for certain index options which are assessed a contract fee. Relevant and regulatory and exchange fees also apply.
Investors can enjoy access to trade US and HK stocks in fractional shares with zero commission fee, plus there are no minimum requirements, no limits on commission-free trades, and no platform fees.
Step-by-Step Guide to buying Fractional Share:
First, find the stock you want.
Click on the red highlighted symbol below.
Key in the name of the stock.
You will notice that if the Order Type is “Limit”, and when you try to key in the Quantity, there is no decimal “.” next to the “0”.
What you need to do now is to change the Order Type to “Market”. This step is critical.
Now under Amount in Share, you can key in a value that is less than 1 (eg. 0.1 or even 0.01).
Check the details and then if it is ok, click confirm. You can check your Webull portfolio to check if the fractional Share is indeed in your portfolio.
There you have it. Easy-peasy.
Thank you for reading.
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