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Charles Schwab Fractional Shares ETFs and Stocks (2024)
Can you buy fractional shares of ETFs at Charles Schwab? Partial shares (stock slices) of Berkshire Hathaway (BRK.A),
Amazon (AMZN), Tesla (TSLA), Google (GOOG), or Facebook (FB)?
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Charles Schwab Fractional Shares
Charles Schwab is a top-rated broker that offers a complete range of investment products and services. Among them is a fractional shares feature, or Stock Slices, as the broker calls them.
Is Charles Schwab a good broker for fractional shares? Read on to find out.
Key Takeaways
• Charles Schwab offers a service called Stock Slices, which allows purchasing fractional shares from top US companies.
• These fractional shares can be purchased for as little as $5.
• Fractional shares still pay dividends, but voting rights and transferability may be limited.
• There are no commissions when trading online through Schwab Stock Slices.
Fractional Shares at Charles Schwab
At Charles Schwab, Stock Slices and fractional shares are the same. Schwab offers fractional shares on all the companies trading in the S&P 500, but the feature is unavailable for stocks not listed in the popular index. If you're not already aware, the S&P 500 is a collection of 500 stocks of the most influential large-cap companies trading in the U.S. marketplace.
If you're considering using Charles Schwab for fractional share trading, there are a few limits to keep in mind.
The minimum amount for any Stock Slice is $5, while the maximum is $50,000. However, the upper limit isn't restrictive because you can purchase as many fractional shares as you desire. There's no cap on how much you can invest.
Charles Schwab Stock Slices Fees
Fees are one thing that you don’t have to think about when trading fractional shares at Schwab. The broker
does not charge commissions on any of its standard stock transactions, including when buying them in ‘Slices.’
Free Charles Schwab Account
Visit Schwab Website
Using Schwab’s Stock Slices Feature
Schwab offers a couple of different ways to get started with stock slices. You can buy individual fractional shares or create collections of Slices when you buy them all as a group.
To start, navigate to the ‘Trade’ tab and select ‘Schwab Stock Slices.”
The next step is to use Schwab’s Stock Slices tool to create your fractional share portfolio. You can select anywhere from 1-30 stocks, and the tool makes finding the ones you want straightforward. You can either locate the shares you are looking for with the search functionality or by filtering the 502 available stocks by their sectors.
When your Stock Slice selection is complete, the next step is to decide on an investment amount. Since there is a $5 minimum to open a fractional share position, the minimum amount you can invest is calculated by multiplying $5 by the number of stocks you have selected. Here is an example selection of 9 popular stocks (not financial advice) that would have a minimum investment amount of $45.
Before reviewing your order and submitting it to the market, you can activate dividend reinvestment as long as your chosen stocks pay dividends.
Is Charles Schwab Good for Fractional Share Trading?
Charles Schwab is an excellent broker for fractional shares trading. The available securities are all prominent companies, and the stock selection tool makes it easy to choose the investments you are interested in. Add Schwab’s zero-commission trading for listed stocks, range of trading platforms, and account diversity, and you have a broker that ticks most of the right boxes. If we were to complain about anything, it would be that the only stocks available for the fractional share program are those listed in the S&P 500.
Free Charles Schwab Account
Visit Schwab Website
Updated on 2/27/2024.
Ben Wright is an investor, a trader, an educator, and something of an explorer. He spends his days in the markets when he is not teaching or spending time with his family. Ben writes about stockbrokers, markets, investment vehicles, promotional offers, and tools that help investors make the most of their time in the markets.
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