What are Fractional Shares?
Fractional shares are fractions of a share of stock. They allow investors to buy a portion of a share of stock, rather than having to buy an entire share. This makes it easier for small investors to start investing in the stock market.
Why Invest in Fractional Shares?
Fractional shares allow investors to buy into companies that they may not have been able to afford before. It also allows investors to diversify their portfolio without having to invest a large amount of money.
Best Platforms for Fractional Shares
There are many platforms available for investors who want to invest in fractional shares. Here are the best platforms for fractional shares in 2023:
1. Robinhood
Robinhood is a popular platform for investing in stocks, and it also offers fractional shares. The platform allows investors to buy and sell fractional shares of thousands of stocks and ETFs.
2. Fidelity
Fidelity is a well-known investment company that offers fractional shares. The platform allows investors to buy and sell fractional shares of stocks, ETFs, and mutual funds.
3. Schwab
Schwab is another popular investment company that offers fractional shares. The platform allows investors to buy and sell fractional shares of stocks and ETFs.
4. Stash
Stash is a platform that is specifically designed for small investors. The platform offers fractional shares of stocks and ETFs, as well as a variety of other investment options.
5. Acorns
Acorns is a platform that allows investors to invest spare change from their everyday purchases. The platform also offers fractional shares of stocks and ETFs.
Factors to Consider When Choosing a Platform
When choosing a platform for investing in fractional shares, there are several factors to consider. These include:
1. Fees
Make sure to consider the fees associated with each platform. Look for platforms that have low fees or no fees for buying and selling fractional shares.
2. Investment Options
Consider the investment options available on each platform. Look for platforms that offer a wide variety of stocks and ETFs to invest in.
3. User-Friendliness
Consider how user-friendly each platform is. Look for platforms that are easy to navigate and use.
4. Customer Service
Consider the customer service provided by each platform. Look for platforms that have good customer service and are responsive to investor needs.
Conclusion
Investing in fractional shares is a great way for small investors to get started in the stock market. There are many platforms available for investing in fractional shares, and each platform has its own pros and cons. When choosing a platform, make sure to consider the fees, investment options, user-friendliness, and customer service provided by each platform. With the right platform, investing in fractional shares can be a great way to build wealth over time.
