What are fractional shares and how to buy them?

Up until recently you were only able to invest in the full stock of a company. This severely limited the options for most people. You couldn't buy shares of industry giants like Amazon, Tesla and Google. You had to choose between a very small number of shares of big companies or more shares of less known companies. You had to put all of your eggs in one basket if you were on a budget. Luckily with fractional shares this isn't the case anymore.

What are Fractional Shares?

Fractional shares are a major game changer. Everyone, regardless of financial background, can build a solid portfolio with them. No longer do you have to make tough decisions between which stocks you can afford and which you should buy. Your diversification options are limitless.

With fractional shares you can invest in a portion of the value of a stock. You can choose the equivalent of half, a third, a quarter or any other fraction of a stock. You don't have to restrict your options based on your budget. Buy what you want, when you want.

Fractional shares are derivatives. When you invest in them you do not personally own the portion of the stock. The price of the fraction derives from the price of the actual stock.

How to buy Fractional Shares?

This is just as easy buying a full stock. You go to the app, choose a stock and press on buy. Now you will be asked to enter how much you would like to buy. From this exact window you can choose wether you want to buy a number of shares or a specific monetary value of the stock. Enter the amount you would like to invest and tap on next. It's as simple as that.

Selling is the same. You don't have to get rid of your full position. You can just sell any amount of your shares. You can do it all.

You dictate how you can manage your portfolio, not your budget.