If you’re a small or medium size investor, you’ll want to know if a brokerage offers fractional shares before investing any money with them.
Fractional shares are the great equalizer when it comes to investing. That’s because they enable an investor with a small amount of money to spread their funds among dozens or even hundreds of individual securities with just a few dollars.
Fractional shares are relatively recent innovation. They enable you to purchase a slice of a high-priced stock, rather than requiring you to buy the entire share. For example, you can invest just $1 in a $100 stock. That also means you can invest $1 in each of 100 stocks to build a complete portfolio with just $100.
Fractional shares also extend to exchange traded funds (ETFs). You can make a $1, $0.50 or even $0.10 investment in a single $50 ETF share.
Fractional shares are also why automated investment management accounts can build a diversified portfolio across multiple ETFs with just a few dollars. Most important, fractional shares mean money is no longer a limiting factor when it comes to investing.
Below is our updated list of top brokerages offering fractional shares, with the latest features and minimums:
| Brokerage | Min. Investment | Accounts Offered | Assets Available | Fees | Notable Features |
|---|---|---|---|---|---|
| Robinhood | $1 | Individual taxable | Stocks, ETFs, Crypto, ADRs | No commissions (ADRs excepted) | No minimums, crypto trading, $1 increments |
| M1 Finance | $100 ($500 IRA) | Taxable, Joint, Retirement, Trusts | Stocks, ETFs | None | Customizable “pies,” automated rebalancing |
| SoFi Invest | $1 | Taxable, Retirement | ETFs | 0.25% (first $10k free) | Live advisors, integrated cash management |
| Betterment | $10 | Taxable, Retirement, Trusts, Nonprofits | ETFs (stocks, bonds) | 0.25%–0.40% | Automated portfolios, tax-loss harvesting |
| Public | $5 | Individual taxable | Stocks, ETFs | None | Social investing, mobile-first, phone support |
| Acorns | None | Taxable, Retirement, Custodial | ETFs, REITs | $1–$5/month | “Round Ups” micro-investing, free checking |
| Stash | None | Taxable, Retirement, Custodial | Stocks, ETFs | $1–$3/month | Automated transfers, self-directed investing |
| Fidelity | $1 | Taxable, Retirement, Trusts | 7,000+ Stocks, ETFs | None | Dollar-based orders, robust research tools |
| Vanguard | $1 | Taxable, Retirement | Vanguard ETFs | None | New in 2025: fractional ETF trading |
| Interactive Brokers | $1 | Taxable, Retirement, Trusts | Stocks, ETFs | Low commissions | Global access, advanced tools, fractional trading |
This is a trading app designed with Millennial’s in mind.
But Robinhood’s specializations are really short term trading and investing in cryptocurrencies. Since they have no minimum investment requirement, they allow fractional shares in stocks and ETFs. The app is designed for self-directed investors since it offers very limited customer support and not much in the way of investment tools and resources.
M1 Finance allows you to invest in up to 100 individual stocks and ETFs with just $100.
You can bet that will include a whole bunch of fractional shares. M1 Finance allows you to choose the investments you will hold in your portfolios, which they refer to as pies. You can have as many pies as you want, and after you’ve selected the investments in each, M1 Finance will manage each + style.
It combines the best elements of self-directed investing with automated investment management.
SoFi offers automated investment management, while providing an online cash management account (SoFi Money) that offers high interest, no monthly fees, mobile banking, periodic cash back offers and a debit card with access to over 55,000 of ATM machines across the country.
SoFi Wealth provides full robo-advisor portfolio selection and ongoing investment management. And since you will need only $1 to open an account, fractional shares will enable you to buy into ETFs in your account.
One of the most unique features of SoFi Wealth is that it’s a robo-advisor that provides access to live financial advisors.
Fractional shares are what Betterment is all about. After all, how else would you be able to invest in a diversified portfolio with just $10.
Betterment is an excellent choice for new investors, and experienced investors who don’t want to manage their own portfolios. They’ll create a portfolio for you, comprised of ETFs invested in stocks and bonds, and provide full investment management at a very low annual fee. They offer two different investment plans, as well as a high-interest cash account.
Public is an investment app that champions fractional shares as one of its primary advantages. You’ll need no money to open an account, but at least $5 to begin trading in either stocks or ETFs.
Investing with so little money will require use of fractional shares. There are no trading commissions, which has become an industry standard. But the app also offers a social media network, where you can discuss investment strategies with other participants on the app. As an investment app, Public is available for mobile use only.
Offer valid for U.S. residents 18+ and subject to account approval. See Public.com/disclosures/.
Acorns is part micro-investing app, and part micro-savings app. That makes it the perfect investment app for someone who wants to begin investing but hasn’t been able to save money to get started.
You save money for investing through a process known as “Round Ups”. You’ll connect your Acorns app to a spending account, and when you run purchases using your credit or debit card, the payments will be rounded up. For example, a charge for $4.25 will be rounded up to $5, with $0.75 transferred into your investment account.
There it will be invested in ETFs using fractional shares, and managed robo-advisor style.
Stash works much like Acorns in that it functions as a micro-savings app, helping you to accumulate the money for investment purposes. But rather than using roundups alone to build investment funds, Stash can also work by analyzing your bank account to find extra funds in your cash flow that can be transferred to investments.
And rather than managing your investment account for you, they instead provide investment recommendations which you will carry out on your own. Stash is good for anyone looking to accumulate funds to invest, while also having the ability to participate in self-managed investments.
Fidelity stands out as one of the most robust platforms for fractional share investing, offering access to over 7,000 U.S. stocks and ETFs. With Fidelity, you can start investing in fractional shares with as little as $1, making it easy for both beginners and seasoned investors to diversify their portfolios without a large upfront commitment.
Fidelity Basic Features
How Fidelity Fractional Shares Work
Fidelity’s “Stocks by the Slice” program allows you to buy a specific dollar amount of nearly any supported stock or ETF, rather than whole shares. This makes it easier to fully invest your available funds and implement dollar-cost averaging strategies. You simply select the dollar amount you wish to invest, and Fidelity will allocate the correct fraction of a share to your account.
Pros
Cons
Fidelity’s combination of low costs, broad investment options, and powerful tools makes it an excellent choice for anyone looking to start or expand their fractional investing journey
Vanguard, a long-standing leader in low-cost investing, now offers fractional share investing — but with a specific focus: you can purchase fractional shares only in Vanguard ETFs and mutual funds, not in individual stocks or non-Vanguard ETFs.
Vanguard’s dollar-based investing lets you buy, sell, and rebalance mutual funds or Vanguard ETFs using any dollar amount, starting at just $1. This approach reduces “cash drag” and makes it easier to stay fully invested without waiting to accumulate enough for a whole share.
Dividends from ETFs or mutual funds are distributed proportionally to all shareholders, including those with fractional shares. You can choose to reinvest dividends automatically, further compounding your returns over time.
Vanguard remains a top choice for investors focused on long-term growth and low costs, especially those who want to build a diversified portfolio with Vanguard’s own products.
Interactive Brokers (IBKR) is renowned for its global reach and professional-grade trading tools, and it now offers fractional share trading for a wide range of U.S. and international stocks and ETFs.
IBKR allows you to allocate a specific dollar amount or share amount when placing trades. Fractional trading is available for most U.S. and many European stocks and ETFs, enabling you to diversify globally and invest efficiently, even in high-priced securities. To enable fractional trading, you must activate the feature in your account settings.
Fractional shares are eligible for dividend payments, which are distributed proportionally based on your holdings. The platform supports both dollar-based and share-based order entry, and you can use advanced order types and automation tools for more sophisticated strategies.
Interactive Brokers is an outstanding choice for investors who want global diversification, advanced tools, and the flexibility to invest in fractional shares across a wide array of markets.
When you buy a fractional share, you're not buying from a pool of random leftover slices. Brokerages buy whole shares and allocate fractional portions to investors.
For example, here’s how Fidelity handles the execution process:
"Fidelity Brokerage Services LLC (FBS) uses National Financial Services (NFS) as our clearing firm. FBS acts as your agent, and NFS acts either as principal or in a mixed capacity. Whole shares are executed in the open market, and fractional shares are often matched against NFS’s principal account."
— Fidelity Disclosure
Similarly, Interactive Brokers notes:
"In connection with any fractional share component of a transaction, an IBKR affiliate generally acts as the counterparty and executes the trade as principal or riskless principal."
— Interactive Brokers
Understanding this backend process adds transparency and builds trust.
Fractional investing isn’t just for beginners. Its full value comes from several key advantages:
Investors can now specify exact dollar amounts instead of calculating share quantities. Want to invest $25 into Google? No math required—just type in $25.
New tools use artificial intelligence to recommend allocations based on your risk profile, goals, and market trends—optimizing your portfolio down to the cent.
Fractional shares enable tax-loss harvesting and portfolio rebalancing for investors of all income levels, not just the wealthy.
In commercial real estate, fractional offerings now target sustainable buildings, allowing ESG-conscious investors to align their dollars with their values.
Blockchain technology and tokenization are taking fractional investing to the next level. By converting assets like real estate, art, or even intellectual property into digital tokens, platforms enable secure, transparent, and efficient trading of fractional interests. This innovation reduces transaction costs, increases liquidity, and makes it possible to buy and sell fractions of unique or illiquid assets with just a few clicks. As tokenization becomes more mainstream, expect to see even more asset classes become available to everyday investors.
Fractional investing is no longer just for individual investors. In 2025, major institutional players-such as pension funds and private equity firms-are entering the space, bringing more liquidity and legitimacy to fractional markets. Their participation is driving innovation, improving regulatory standards, and expanding the range of available assets. As institutions adopt fractional models for commercial real estate, infrastructure, and alternative assets, retail investors benefit from increased transparency, better pricing, and access to deals that were once off-limits.
Fractional ownership is rapidly expanding into niche and high-growth sectors. Investors can now buy into data centers, senior housing, medical office buildings, and specialized industrial properties-markets that offer unique growth and income opportunities. These specialized assets often have high barriers to entry, but fractional platforms break them down, allowing you to diversify into areas that were once the domain of large institutions. This trend is expected to continue, giving investors even more ways to tailor their portfolios to their interests and financial goals.
Regulatory changes and technological advances are making fractional shares more accessible worldwide. For example, the UK recently lifted restrictions on holding fractional shares in ISAs, opening up new opportunities for British investors. Other countries are following suit, with regulators working to ensure transparency, investor protection, and seamless cross-border trading. As fractional investing goes global, expect to see more platforms, assets, and features tailored to international investors, making it easier than ever to build a diversified, global portfolio.
If you’ve been avoiding investing out of fear that you don’t have enough money, wait no longer. The widespread use of fractional shares means you can begin investing with as little as $5.
You’ve got to start somewhere, so you may as well start small. But once you get started, you can gradually increase your investment and watch your portfolio grow. Fractional shares make it happen.
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