Let’s face it: investing in stocks can be confusing. There are so many different companies, each with its own market cap and ticker symbol, that it’s hard to know where to start. You might think buying partial shares are reserved for the super-rich or those who have a lot of money to invest, but there are actually several ways you can buy partial shares online right now!
As financial planners like SoFi say, “Fractional shares make it possible to own part of a stock from your favorite companies without committing to a whole share.” So here are four great places to start looking for fractional stocks:
Stash Invest is a robo-advisor that allows you to invest in fractional shares of stocks. This means that you don’t have to own one whole share of a stock and can buy as little as one-tenth of a single share (or less).
When it comes to investing, diversification is key.
By purchasing fractional shares, investors can keep their portfolios more balanced and reduce risk by owning a variety of companies with varying industries and sizes.
If you’re looking for a low-cost way to invest in stocks, Stockpile is a great choice. Stockpile is an online platform that allows you to purchase fractional shares of publicly traded companies at $0 commission. The minimum amount you need to invest is $10, and there’s no annual account fee.
Stockpile offers many different types of stocks, including those from some well-known companies like Facebook and Amazon. The company also offers shares from hot startups like Warby Parker and Casper Mattress Company—though these tend to be more expensive than other options (and can be risky).
Robinhood is a trading app that allows you to buy and sell stocks without paying fees. The only fee it charges is a $10 monthly Gold subscription, which gives you access to margin trading and extended market hours (the ability to trade after the close of regular markets).
Although Robinhood Gold isn’t offered in every state yet, it’s poised to continue gaining popularity among young investors.
M1 Finance is a robo-advisor, which means the app uses algorithms to make suggestions for your investments. It’s also a fractional stock broker, meaning you can buy into anything from one share to ten thousand shares of any of their supported companies.
M1 has no minimum deposit requirements for their accounts; you can open an account with as little as $5 if you want (though not recommended). They also have no trading fees and don’t charge any annual fees on accounts opened after October 1st 2018. The only fees they charge are commissions on each trade—and they’re much lower than competitors like Robinhood or Etrade!
Public.com is an online investment platform that allows you to invest in fractional shares of publicly traded companies. You can buy stocks you like, set up recurring deposits and create a portfolio of stocks. No minimum investment is required!
It’s a great time to be investing in partial stocks. The market is red hot and the best digital brokers are making it easier than ever to invest in the stock market. This article might have given you some good ideas on what stocks might be good for you and some new ways to invest in them!