Can I buy fractional shares on Ameritrade

TD Ameritrade Fractional Shares

2023: Does TD Ameritrade allow buying partial (fractional) shares of stocks (Berkshire Hathaway (BRK.A), Amazon (AMZN), Tesla (TSLA), Google (GOOG), or Facebook (FB))?

Buying Partial Shares at TD Ameritrade

Some brokers today have taken advantage of the hot trend of fractional share investing. One of the largest brokers currently missing out on this trend as a result of not offering fractional shares is TD Ameritrade. Webull is one of the most user-friendly brokers and is a great alternative for TD Ameritrade customers looking for fractional shares.

Fractional Shares Commissions

Webull offers commission-free trading of stocks and ETFs on its mobile app, website, and desktop platform. Fractional shares of stocks and ETFs are included in Webull’s commission-free offering.

Fractional Share Minimums

There are two minimums that come into play when placing orders for fractional shares on Webull. The first minimum is a $5 minimum to buy fractional shares. The second minimum is the number of shares being purchased must be greater than 0.00001. If a fractional share order doesn’t meet both of those minimums, then you can’t place the order.

There is no dollar amount minimum when selling fractional shares on Webull but the 0.00001 share quantity minimum still applies.

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Fractional Shares Rules & Guidelines

Fractional shares are available for many stocks and ETFs on Webull, but not all. Webull makes it very easy to see if a security is eligible for fractional shares or not by putting a “Fractional Shares Trading Enabled” label on the security overview page and also under the market order type on the order selection screen. Some brokers allow limit orders and market orders for fractional shares, but Webull only allows market orders.

Webull allows you to trade fractional shares during standard market hours but not during the pre- or post-market sessions. You cannot short-sell using fractional shares on Webull. You need to be careful when placing fractional share orders on Webull because once you place a fractional share order, you are allowed to cancel it, but you can’t modify it.

Buying Fractional Shares on Fidelity

Fractional Share Restrictions

Webull doesn’t allow you to place a buy order that includes a whole share and a fraction of a share. For example, if you want to buy 3.5 shares of AAPL, you will need to place an order for the 3 whole shares and then place a separate order for the .5 shares.

If you decide you want to transfer fractional shares out of Webull to another broker, you may not be able to, depending on the broker. Webull only allows you to transfer fractional shares to certain brokers that use the same clearinghouse as them. For any fractional shares that can’t be transferred, you will need to liquidate them and transfer the cash instead.

Buying Fractional Shares on Webull Platform

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Uses of Fractional Shares

Fractional shares are an extremely powerful tool that allows you as a retail investor to take advantage of some of the same investment strategies as the largest players on Wall Street that, you might not have been able to previously. For one, fractional shares allow you to afford high-priced stocks without having to buy a whole share.

Another powerful use of fractional shares is the ability for you to essentially create your own fund or replicate a mutual fund or ETF. On Webull, you can build an entire portfolio of fractional shares that can be your own version of a fund without needing to spend thousands of dollars on whole shares of every stock in your portfolio.

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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.