Introduction
Investing in the stock market has always been a lucrative option for those who are looking to make money in the long run. However, not everyone has the capital to buy whole shares of expensive stocks. This is where fractional shares come into play. Fractional shares allow investors to buy a portion of a share, making it easier for them to invest in expensive stocks. In this article, we will be discussing the best brokerage for fractional shares in 2023.
What are Fractional Shares?
Fractional shares are the portions of a share that are less than a whole share. For example, if a share of a company costs $100 and an investor only has $50 to invest, they can buy 0.5 fractional shares of that company. Fractional shares allow investors to invest in expensive stocks without having to buy whole shares.
Best Brokerage for Fractional Shares
In 2023, the best brokerage for fractional shares is Robinhood. Robinhood is a commission-free trading platform that allows investors to buy and sell fractional shares of companies. Robinhood offers a user-friendly interface and has no account minimums, making it easier for investors to get started with fractional shares.
Benefits of Using Robinhood
There are several benefits of using Robinhood for fractional shares. Firstly, Robinhood offers commission-free trading, which means investors can buy and sell fractional shares without incurring any fees. Secondly, Robinhood has a user-friendly interface, making it easy for investors to navigate the platform. Lastly, Robinhood has no account minimums, making it easier for investors to get started with fractional shares.
Other Brokerages for Fractional Shares
Apart from Robinhood, there are other brokerages that offer fractional shares. These include Fidelity, Charles Schwab, and E*TRADE. However, these brokerages may charge commissions for buying and selling fractional shares, and they may also have account minimums.
Factors to Consider When Choosing a Brokerage for Fractional Shares
When choosing a brokerage for fractional shares, there are several factors to consider. Firstly, investors should consider the fees charged by the brokerage for buying and selling fractional shares. Secondly, investors should consider the user-friendliness of the platform. Lastly, investors should consider the account minimums required by the brokerage.
Conclusion
In conclusion, investing in fractional shares is a great way for investors to invest in expensive stocks without having to buy whole shares. In 2023, the best brokerage for fractional shares is Robinhood. Robinhood offers commission-free trading, a user-friendly interface, and no account minimums, making it easy for investors to get started with fractional shares. However, investors should also consider other brokerages and factors when choosing a brokerage for fractional shares.
