M1 Finance

Fidelity: Fractional Shares of Stock (2021)


Does Fidelity offer buy orders of partial (fractional) shares or dollar amount of high value stocks such as Berkshire Hathaway (BRK.A), Amazon (AMZN), Tesla (TSLA), Google (GOOG), or Facebook (FB)?



Buying Fractional Shares of Stock on Fidelity


You can now directly buy a fractional share of stock (for example stock slice of Berkshire Hathaway or Google) on Fidelity Investments. And it is completely free.

To buy a partial share of stock or ETF's at Fidelity Investments follow these easy steps:

1. Determine how much money you want to invest and what you want to invest in.

2. Tap Transact, then Trade in the Fidelity mobile app.

3. Select Dollars, and fill in the Quantity with the amount of your trade.


Fidelity Partial Shares


Alternatives


You can also invest in partial shares of stocks and ETF's by using a $0-commission brokerage firm called Sofi Invest (read review).


Open Sofi Invest Account


Get $5 - $1,000 in free stock when you open an account with mobile app!

Open Sofi Account


Fidelity New Account Setup

Fidelity's account opening process is very well designed and quick - it took only ten minutes to open a regular brokerage (non-IRA) account. The application includes designating a beneficiary, setting up document delivery options (we always choose email) and ACH information to transfer money from/to a bank.

After the account is opened, transferring money from your bank is a simple matter of going to Accounts & Trade > Transfer Money/Shares in the main menu of the homepage. The main downside is that the ACH deposits you make with Fidelity will generally not be available for trading (or withdrawal) for up to 4-6 business days, which is much longer than with many other brokers.


Fidelity Mutual Funds Review


Fidelity Investments is one of the largest mutual fund companies in the world, with 430 mutual funds under management. The funds target dozens of asset classes: index funds, U.S. stocks and international stocks funds, asset allocation funds, sector funds and others.

Investors at Fidelity can buy and sell 11,672 mutual funds. This number includes all fund families. The broker has 3,572 funds that have no transaction fee. Approximately half of these also have no load. Searching through all of the funds is fairly straightforward with the broker's excellent screener. Users can search for only Fidelity funds, or specify a certain Morningstar rating, or require a minimum yield. Other criteria include bond duration, expense ratio, manager tenure, minimum investment, and asset class. Other mutual fund tools at Fidelity include mutual fund recommendations from Kiplinger and Money magazines, a comparison between Fidelity and Vanguard funds, and videos on mutual fund investing.

Fidelity's own mutual funds and funds in NTF program are commission free. All other mutual funds can be purchased for $49.95. Selling mutual funds is free unless client sells within 2 months of purchasing - then Short Term Trading Fee of $49.95 applies (does not apply to Fidelity family funds). There is a Low Balance Fee of $12 per year for each noncore Fidelity fund with balance under $2,000.


Fidelity Review: Mutual Funds


IRA's


There are no IRA fees at Fidelity. This includes no inactivity fees, no setup fees, and no annual fees. There is also no minimum deposit required to open an IRA with the broker. Investors can choose from SIMPLE, SEP, Rollover, Traditional, Roth, Minor Roth, and Inherited IRA's.

Fidelity has several good IRA calculators and educational resources. For example, a contribution calculator for IRA's determines how much an investor can contribute to an IRA based on criteria such as modified adjusted gross income, age, and tax filing status. The Fidelity website also has a useful conversion calculator to help investors decide if changing a Traditional IRA to a Roth makes good financial sense. Inputting data such as age, tax-filing status, and account balance produces a graph showing the hypothetical retirement value of making the conversion versus not doing so.


Fidelity Partial Shares Disclaimer


Information on selling and buying partial shares of stock at Fidelity Investments is subject to change. For the most recent information on Fidelity fractional shares trading charges visit their website.