INVESTING IN FRACTIONAL STOCK WITH THE BEST STOCK BROKERS

Online brokers have rushed to offer new features to their clients, including the ability to invest in fractions of a share as the competition among them has heated up. With this option, investors do not have to have enough cash on hand to purchase a total share of a stock or ETF but can buy just a few shares with virtually any amount of money. Investors who are just starting out may find it useful to be able to purchase fractional shares. It is possible to invest with a much modest amount of money, and with some stocks selling for thousands of dollars per share, you are able to purchase what you can afford. Dollar-cost averaging is much easier with this feature, especially now that major online brokers have eliminated transaction fees.
Many brokers have just begun offering fractional shares to investors, whereas others have allowed them to do so indirectly through dividend reinvestment plans since the early 1980s. In any case, this would be true even if brokers did not offer fractional shares for trading. Fractional shares are still available through dividend reinvestment at some brokers, but not at others. If you elect to participate in a dividend reinvestment plan, you may purchase only the stock that made the payout and no other stock. All of the major online brokerages no longer charge trading commissions, so you can reinvest the cash yourself without incurring any additional costs.
The only thing left is to decide which brokerage is the right fit for you out of the many that offer fractional share investing.
Robinhood
It was Robinhood that introduced the concept of commission-free trading online in the early 2000s. The Robinhood platform has spread across the investing world, and it has now set its sights on another frontier: fractional stock shares. In spite of the fact that you are currently only able to join the waitlist, there is no cost or obligation to join once it has been deployed. Take advantage of great features including a high-yield cash management account and an array of alternative investments, including cryptocurrencies and precious metals. Robinhood offers commission-free cash trading, but some transaction types and account activities may incur fees, as well as regulatory fees. New Robinhood accounts are eligible for a free stock worth $2.50 to $150 (or more) per share when they apply for an account opening bonus. The minimum investment is not required to open an account.
Stash
Investing in fractional shares is the concept behind the Stash micro-investing platform. In contrast to competitors such as M1 Finance and Betterment, Stash offers investors - even those just beginning - total control over the composition of their portfolios. When your portfolio consists solely of stocks and bonds, you will be able to avoid fund expenses when you invest as little as $0.01 in stocks, exchange-traded funds, and bonds. Stash plans include a taxable investment account and a checking account with two great features: fractional stock rewards on all eligible transactions and an accelerated payday feature. If The payday feature allows you to receive your paycheck up to two days earlier each pay period if your employer qualifies. There are a number of Stash plans that offer tax-advantaged retirement accounts as well as custodial investing accounts for up to two children. Fractional investing is also available in both types of investments.  
There are no price differences in Stash's Auto-Stash feature. With this tool, you will have access to three features that will encourage regular investing: recurring investment options (usually weekly or monthly), a round-up-the-change feature that rounds up your checking debit card purchases to the nearest dollar and invests the difference, and a smart investing tool that automatically moves excess funds from your checking account to your investing account. There are three plans offered by Stash: Beginner ($1 per month), Growth ($3 per month), and Stash+ ($9 per month). This package includes a taxable investment account, a checking account with early paydays, fractional stock rewards on transactions (Stock-Back), and free financial education tools. Tax-advantaged retirement accounts are available through Growth. It includes custodial investing accounts for up to two children, a metal debit card with twice the Stock-Back rewards, and a monthly market insight report. Bonus for opening an account: $5. An account opening minimum of $1 is required to open an account.
Webull
Among the increasingly popular online brokerage services is Webull, which does not charge commissions for stock trading or management fees. Aside from that, it is also one of the best places to buy and sell fractional shares of top stocks and ETFs. A fraction of a share can be purchased for as little as $5 (minimum 0.00001 shares per order), allowing you to purchase smaller portions of stocks with a higher market value. The platform also lets you buy options and cryptocurrencies, enabling the diversification of your portfolio without the need to open yet another brokerage account. Neither trading commissions nor account management fees are charged by Webull. Get up to two free stocks valued up to $2,300 when you open an account and complete other qualifying activities by the stated offer end date. It is possible to invest in fractional shares with as little as $5, and a minimum balance is not required on an ongoing basis.
Public
A social investing platform known as Public focuses on fractional shares as a key component of its business model. Public allows users to invest directly (and commission-free) in "stock slices" worth as little as $5 each, regardless of the price of the underlying shares, and it encourages socially responsible investing, two important factors for younger investors. No commissions are charged on index funds offered by Public if you do not wish to invest in individual stocks. Public's social messaging tool will allow you to stay in touch with your fellow investors and to discuss your investments once you are up and running. There are no commissions associated with Public's trading plans for all customers, but there may be some charges associated with certain account actions. The costs and fees associated with index funds can also be beyond the control of Public. There is currently no account opening bonus available. 
M1 Finance
M1 Finance is a digital money management app that offers users free checking accounts, low-cost borrowing options, and an automated investing platform. In its investing solution, M1 Invest, more than 80 ETFs are available in fractional share market investments that are dynamically rebalanced and fully customizable. In comparison to other digital investing platforms, M1 Finance's biggest selling point is M1 Borrow, a portfolio lending tool that offers low-cost financing secured by the account holder's investments. With M1 Plus ($125 per year), you will have access to M1 Borrow loans at just 2% APR, which is better than home equity loans and lines of credit, and roughly equal to the lowest rates on auto loans.
If M1 Borrow can help you unlock substantial sums of low-cost capital if you do not own your own home or do not have the equity required for home equity financing. M1 Finance offers two plans: a base plan (M1 Finance) and a premium plan (M1 Plus) that costs $125 per year. The M1 Plus plan provides an additional daily trading window as well as a yield of 1% on checking balances and a cashback rate of 1% on checking transactions. No account opening bonus is available. There is no minimum investment requirement with M1 Finance.
Betterment
Betterment was founded during the depths of the financial crisis in the late 2000s to offer fractional shares to the masses. It specializes in tax-efficient, custom-allocated portfolios for passive investors, and continues to be a leader in managed investing. Low-cost ETFs track specific indexes, sectors, and asset classes in Betterment's purpose-built portfolios. Through automatic dividend reinvestment and unlimited portfolio rebalancing, the company's investment model spreads relatively small amounts of cash among multiple investments.
Betterment waives transfer and trading fees to maintain low net costs. Management fees are calculated as a percentage of assets under management (AUM) and fund expenses that Betterment cannot control. Betterment offers two other tools for managing your money daily: Betterment Checking, which offers a rewards program (Betterment Cash Back Rewards); and Betterment Cash Reserve, a cash management account with a high yield (although it varies with prevailing rates). FDIC-insured, fee-free, and allowing inbound and outbound transfers at no charge, both accounts offer similar features. The funds in these accounts can be transferred at any time into your investment account.
There are two Betterment plans: digital (0.25% AUM on all balances) and premium (0.40% AUM on all balances, with a $100,000 minimum). Betterment's premium services include comprehensive guidance on non-Betterment investments (such as employer-sponsored retirement plans) and direct, unlimited access to Betterment's certified financial planner professionals for advice on major life events, including marriage and home ownership. With a qualifying account opening deposit, you may receive up to one year of free account management. For $15,000 to $99,999, you'll get one month managed free, $100,000 to $249,999 for six months, or more than $250,000 for the full year. There is no minimum investment requirement for account opening or ongoing investments.
Fidelity
Among Fidelity's many features are commission-free stock and ETF trades with fractional share investment capabilities, a Robo-advisor platform with relatively low fees and no minimums, and a hands-on wealth management arm for investors with at least $50,000 in investable assets. To help self-directed investors avoid fund fees and to build portfolios that are truly fee-free, Fidelity offers an extensive library of no-fee Fidelity ETFs. For investors who prefer to be hands-off, Fidelity Go is a robo-advisor, and Fidelity Personalized Planning & Advice is a hybrid platform. The two companies offer semicustomized portfolios that can be tailored to meet your specific objectives and risk tolerance. There is also some input from human advisors and dynamic rebalancing through fractional shares in both plans.
Fidelity's self-directed solution has virtually no fees with no commissions on stock and ETF trades as well as a variety of no-fee Fidelity ETFs. In the case of Fidelity Go (Robo-advisor), a fee of 0.35% is charged on all balances above $50,000, a fee of $3 per month is charged on balances between $10,000 and $50,000, and no fee is charged on balances below $10,000. Personalized Planning & Advice (hybrid Robo-advisor and human-assisted coaching) charges a flat fee of 0.50% of assets under management. Amounts charged by the wealth management division range from 0.50% to 1.50% of the AUM, depending on the value of the investments. White-glove service for high-asset investors, the private wealth management arm charges 0.20% to 1.04% AUM, depending on the balance. There is currently no account opening bonus available. To open a Fidelity self-directed account or a Fidelity Go Robo-advisor account, there is no minimum deposit required. A hybrid Robo-advisor and coaching account require a minimum of $25,000 across all enrolled accounts. There is a minimum $50,000 requirement for wealth management accounts, with dedicated financial advisors available starting at $250,000. The starting point for private wealth management services is $2 million.
SoFi Invest
As mentioned, SoFi Invest is a very low-cost investing app with a massive cache of fractional shares, called Stock Bits by SoFi, with denominations of $1 and up. It is simple for new investors to develop diversified self-directed (Active Invest) portfolios using Stock Bits. Fractional shares are also an integral part of SoFi Invest's managed portfolio solution, which offers dynamic rebalancing and dividend reinvestment. No commissions are charged on stock or ETF transactions in Active Invest portfolios. Management fees are not charged on SoFi's managed portfolio solutions, but funds in which SoFi invests do charge management fees.
In spite of the fact that cryptocurrency investing does not intersect with the platform's fractional share investing capabilities, SoFi Invest nevertheless has an advantage over traditional brokerage firms. The investment platform SoFi Invest remains one of the few SIPC-insured platforms that offers access to crypto assets. There are two options for SoFi's plans and pricing: self-directed investing (Active Invest) and managed portfolios. There is no commission or management fee charged by either company, and both utilize fractional shares (Stock Bits). Nevertheless, managed portfolios are subject to third-party fund fees and expenses that SoFi does not have control over. Open a new Active Invest account and receive $1,000 in free stock when you download the SoFi Invest app. Account opening minimums for Active Invest and automated investing are just $1.
Stockpile
As a low-cost self-directed investing platform, Stockpile offers direct access to fractional shares of more than 1,000 stocks and ETFs, with no fees or minimums. Investors who are new to investing may use the platform to invest in organizations that they are familiar with or care about. The stock search feature of its website is intelligent enough to list parent companies of popular brands (for example, a search for "ESPN" brings up Disney). Among Stockpile's other features are custodial investment accounts for kids and teens and the ability to gift stocks via electronic or physical gift cards. Stockpile offers self-directed investors a single plan. There are no additional fees or minimums associated with Stockpile trades, which cost $0.99 per trade. A common feature of ETFs is that they charge fees and expenses that Stockpile cannot control. Currently, there is no account opening bonus available. Don't miss out on the latest offers. Opening an account requires a minimum investment of $5, but subsequent investments are not subject to minimum investment requirements.
Pros And Cons Of Buying And Owning Fractional Shares
In the stock market, fractional shares refer to partial shares or a portion of a company's stock. They are available for purchase and sale in the same manner as whole shares. Fractional shares have a number of benefits. One advantage of investing in high-priced stocks is that investors with limited capital may be able to do so. Nevertheless, not all brokers offer fractional shares, and bookkeeping for fractional shares can be challenging. Here are some pros and cons associated with fractional shares.
Pros    Cons
⦁    It is possible for investors to invest with little money.
⦁    Investing in high-priced stocks is an option for investors.
⦁    With less money, investors can build a diversified portfolio.
⦁    It is much easier for investors to rebalance their portfolios.
⦁    The money invested can be put to work immediately rather than sitting in a bank account.
    ⦁    Brokers do not all offer fractional shares.
⦁    Broker commissions can make buying fractional shares expensive.
⦁    Bookkeeping and record keeping can be complicated when buying fractional shares.
⦁    Fractional shares may pose liquidity issues.
⦁    Fractional shares may not be transferable by investors.
⦁    Shareholder rights may not be available to investors depending on the broker.
⦁    A dividend may not be paid to investors who own very small fractions of shares.


By Rashmi Goel