Can I buy fractional shares on Fidelity

Fidelity Fractional Shares (2023)

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)?

Fidelity Partial Shares

Fractional share investing has provided many retail investors the opportunity and flexibility to invest on their own terms. Most of the largest brokers today offer fractional share investing. This article focuses on fractional share investing with Fidelity and Webull and examines the similarities and differences between the two.

Fidelity vs. Webull Fractional Share Investments

Fidelity offers fractional share investing for over 7,000 stocks and ETFs. Webull doesn’t provide a specific number of securities that are eligible for fractional shares, but they say that fractional share investing is available for “most” stocks and ETFs that you can trade with them. Both brokers only offer fractional share investing for U.S. exchange-listed stocks and ETFs which means you cannot trade fractional shares of OTC, pink sheet stocks, or foreign stocks.

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Fractional Share Commissions & Fees

Neither broker charges any additional commissions or fees for fractional share investing. Both brokers offer commission-free trading of U.S. exchange-listed stocks and ETFs.

Fractional Share Rules and Limitations

Both brokers only allow fractional share orders to be executed during standard market hours and not during pre or most market sessions. Fidelity allows fractional share orders to be placed as a market or limit order. Webull only allows limit orders for fractional shares.

Fidelity allows fractional share orders with a minimum of only $1. Webull has a fractional share order minimum of $5. Neither broker allows short selling of fractional shares, but you are allowed, of course, to place regular sell orders for fractional shares.

Fractional shares with Fidelity and Webull do not carry any share voting power. Both brokers count fractional shares as eligible to receive dividends and allow fractional share positions to participate in their dividend reinvestment program.

Buying Fractional Shares on Fidelity

Fractional Share Eligibility

Fidelity offers fractional share investing for taxable brokerage accounts, Fidelity Youth accounts, IRAs, and HSAs. Webull offers fractional share investing for taxable brokerage accounts and IRAs. Neither broker has any special eligibility requirements for fractional share investing therefore, it is open to everyone.

How to Place Fractional Share Trades

On Fidelity, you have to use the “Quick Ticket” trading ticket on mobile or the “Simplified Ticket” trading ticket on the website to place a fractional share order. The only way to tell if a security is eligible for fractional shares or not on Fidelity is to try to place an order and you will get an error message if the security is not eligible.

On Fidelity, you can choose to place a fractional share order in quantities of dollars or shares. If choosing a share quantity, you can enter a quantity out to 3 decimal places with the requirement that your order is at least worth $1. If choosing the dollars quantity, your order has to be both a minimum of $1 and worth at least .001 shares.

On Webull, you can place a fractional share order using the regular trading ticket on mobile and web. Webull does a much better job than Fidelity of showing whether or not securities are eligible for fractional shares by both labeling eligible securities on the security overview page as well as when you click into the order types on the trade ticket.

Buying Fractional Shares on Webull Platform

On Webull, you first need to choose the order type of market order for placing a fractional share order. Then, you need to change the button next to the “Amount in” field from “Share” to “USD”. Lastly, you can place your fractional share order with a minimum amount of $5 and a minimum share amount being purchased worth 0.00001 shares.

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About the Author
Paul Johnson is a Licensed Stockbroker with 7+ years of experience in the financial services industry. Paul enjoys teaching about investing and writing about financial topics. He is a husband and father of twin boys.