Fractional share investing is an approach that allows investors to buy portions of a company’s stock rather than a whole share. This means you can invest in stocks with high per-share prices with lower initial capital. This method enables greater diversification, especially for investors with smaller portfolios.
At BBAE, we have a broad variety of stocks and ETFs available for fractional share trading. Here’s how it works:
- Choose the stock or ETF: You first select the security you wish to invest in, just like you would for whole share investments.
- Determine your investment amount: Instead of specifying the number of shares you wish to buy, you can specify the amount of money you want to invest in the chosen security.
- Execute the trade: When you confirm the trade, BBAE’s system will calculate the fraction of the share that corresponds to your investment amount and execute the trade accordingly.
Please note that fractional shares can’t be transferred to other brokerages, and not all securities are available for fractional share trading.