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Can You Buy Fractional Shares on E*TRADE?
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Can You Buy Fractional Shares on E*TRADE?
Major Discoveries:
• E*TRADE now offers fractional-share trading for stocks and ETFs.
• There is no surcharge on fractional-share trades at E*TRADE.
• Not all ETFs and stocks can be traded in fractional shares on the E*TRADE platform.
E*TRADE is currently rolling out fractional-share trading. Here’s the rundown:
Overview of Fractional Shares at E*TRADE
Fractional shares have been available for a long time at E*TRADE. The broker-dealer has always offered whole-dollar investing in mutual funds, a policy that naturally results in fractional shares of those funds. E*TRADE has also launched cryptocurrency trading, and cryptocurrencies at E*TRADE can be bought and sold in whole-dollar amounts.
E*TRADE customers can also enable automatic dividend reinvestment through a dividend reinvestment plan (DRIP) for their equity positions, resulting in fractional shares of those investments.
E*TRADE is now rolling out fractional-share purchases of exchange-traded funds (ETFs) and stocks. Buying these securities in fractional quantities results in immediate fractional shares before any dividends are paid.
Eligible Securities for Fractional-Share Trading at E*TRADE
Currently, E*TRADE customers can buy and sell a limited selection of stocks and ETFs in fractional shares. There are roughly 600 eligible stocks, including those in the Nasdaq-100 and S&P 500, and four ETFs: DIA, SPY, QQQ, and IWM.
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Placing a Fractional-Share Trade at E*TRADE
Placing a fractional-share trade for an eligible security at E*TRADE follows the same general procedure as placing any other trade. For mutual funds, the process remains the same: simply enter the dollar amount you want to purchase on the order ticket.
For stocks and ETFs, open the order ticket on any E*TRADE platform, including the website, browser platform, mobile app, or desktop program, and enter the share quantity you want to trade, using up to three decimal places. Currently, E*TRADE’s software does not accept a whole-dollar amount for these orders, although this capability is planned for the future.
After entering the correct fractional-share quantity and ticker symbol on the order ticket, submit the trade as usual. The specified quantity will be traded according to the parameters entered on the ticket.
At E*TRADE, only market and limit orders are accepted for fractional-share trades. If the quantity is less than one full share, only a market order can be used.
Dividends and Voting Rights on Fractional Shares at E*TRADE
Fractional shares held in an E*TRADE brokerage account receive dividends in proportion to the fractional amount held. For example, a position of 0.25 shares will typically receive approximately one-fourth of the total dividend paid per share by a stock or ETF.
For mandatory corporate actions, fractional shares also receive voting rights in proportion to the quantity held, making proxy voting possible. For voluntary corporate actions, fractional shares do not receive voting rights.
Fees and Minimums at E*TRADE for Fractional-Share Investing
E*TRADE applies its regular pricing schedule to fractional-share securities trades. This means fractional-share trades of eligible stocks and ETFs carry $0 commissions. Cryptocurrency trades cost 0.5% of the trade value.
For mutual funds, the minimum purchase amount is $0 for some funds. For stocks and ETFs, the minimum order is 0.001 shares, which can result in a minimum purchase of as little as $0.01 for certain ticker symbols.
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Visit E*TRADE Website
Updated on 6/22/2026.
Chad Morris is a financial writer with more than 20 years experience
as both an English teacher and an avid trader. When he isn’t writing
expert content for Brokerage-Review.com, Chad can usually be found
managing his portfolio or building a new home computer.
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