Can I buy fractional shares on Webull

Webull Fractional Shares


2022: Does Webull offer buying of fractional (partial) shares of high value stocks such as Berkshire Hathaway (BRK.A), Amazon (AMZN), Tesla (TSLA), Google (GOOG), or Facebook (FB)?


Buying Fractional Shares on Webull


If you’ve been buying and selling ETFs and stocks in whole shares, it’s time to step out of the 20th century and into the 21st. Whole-dollar or fractional-share trading is now available on Webull. For more details on the benefits of fractional-share trading at Webull, read on.


How Fractional-Share Trading at Webull Works


In the not-so-distant past, brokerage firms only permitted their customers to trade whole shares of stocks and ETFs. The simple reason is that partial-share trading requires advanced software, and the firms didn’t have that. Today, they do.

The way it works is fairly straightforward: a brokerage house queues orders for a single stock from multiple customers, goes into the marketplace and buys the stock, and then allocates fractional shares to the customers’ accounts.

For example, say that customer A buys 0.2 shares of GameStop, customer B buys 0.3 shares, customer C buys 0.1 shares, and customer D buys 0.4 shares. In this case, the brokerage firm would buy one whole share, keep that share on its own books, and credit the four accounts with the amounts they ordered. All of this is done using today’s advanced software. Without such technology, partial-share trading on Webull would be far too difficult.

Fractional shares don’t exist on the stock exchange. Only whole shares actually trade, and we see in the above example that the brokerage firm buys (and sells) only whole shares. Fractional shares are an accounting service that Webull provides to its clients.


Fractional-Share Trading at Webull


And why exactly would anyone want to engage in partial-share trading on Webull? With traditional whole-share trading, some stocks require a lot of money to buy just one share. Amazon, for example, trades at over $3,000 right now. And the famous class A stock of Berkshire Hathaway is above $400,000.

Obviously, some of the world’s popular stocks require a lot of money just to buy one share. But not anymore.

It’s now possible to buy Amazon, Berkshire Hathaway, and other high-priced stocks at Webull with just $5. That’s the broker’s minimum purchase amount for fractional-share trades. There is no minimum dollar amount on the sell side.

A fractional-share purchase or sale at Webull must also be worth at least 0.00001 shares.

Webull treats partial shares just like whole shares during company events. For example, fractional shares of stocks and funds that pay dividends receive fractional dividends. And stock splits and reverse splits adjust share amounts.

Partial shares can be day traded or swing traded at Webull just like whole shares.

It is not possible at this time to transfer fractional shares into or out of a Webull account.


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Fees and Minimums


Because this is such a modern and beneficial service, it must cost a lot, right? Well actually, Webull charges nothing for it. To start with, the broker charges nothing for a regular, whole-share trade of a stock or ETF. Pretty nice. If you switch to fractional shares at Webull, there is no surcharge. So either transaction has no trade fee.

Webull also charges nothing to open, maintain, or close an account. The broker charges nothing to use its advanced software, either.

With only a $5 purchase minimum and no fees, Webull is a great choice for small accounts.


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Trading Fractional Shares on Webull’s Website


Speaking of Webull’s free software, one of the best places to start is Webull’s website. If you need to first open an account, it’s easy to do so here; plus, there are some account tools located inside the site just in case you need to download account documents or transfer some money into your account to start trading.

Once you have your account open and funded, it’s time to buy something. The website is a good place to begin because there’s a browser platform that launches from the site. Just click on the Trade tab in the top menu. A new tab will appear with a trading platform.

Here, you’ll find lots of useful trading resources. These tools include a stock screener, a watchlist, advanced charts, and of course a trade ticket.

The order ticket is of course what we want to look at here because that’s where fractional shares will be requested. But first, we need to populate the ticket.

To accomplish this, Webull’s software provides several methods. First, you can right click on a chart and select trade from the drop-down menu. Be sure to select a regular order and not an advanced order. Webull’s advanced order ticket does not have fractional-share capability.


Buying Fractional Shares on Webull Website


The second method is to populate the stock profile that appears on the right-hand side of the platform. Scroll down and you’ll see the regular trade ticket already populated with the stock’s info.

Once you have the ticker symbol entered on the order ticket, it’s time to prep it for a fractional-share trade. To do this, you need to toggle to dollar amount in the Amount field. There are three choices here: share amount, dollar amount, and percent. For a fractional-share trade, you need to choose dollar amount and then enter the dollar amount you want. Remember that on the buy side, the minimum transaction is $5, and this must be equal to or greater than 0.00001 shares.


Pointers for Fractional-Share Trades at Webull


Fractional-share trades at Webull must be entered as market orders. Moreover, the fractional-share field only works in live trading. Although Webull’s platforms do have a simulated mode, fractional shares cannot be traded in that mode (only live mode).

Because market orders at Webull cannot be used during extended hours, the result is that it’s only possible to trade fractional shares during the regular day session. Also, a market order cannot be set as good-till-canceled. It can only be pegged as a day order, meaning the order will be canceled at the end of the day’s session if it doesn’t execute.

If you want to trade more than one whole share at Webull, you may need to submit two orders, one for a whole share amount, and a second order for the partial share. For example, if you want to buy 3.08 shares of Apple, you may need to place one order for 3 shares and a second order for 0.08 shares.


Trading Fractional Shares on Webull’s Desktop Program


In addition to its browser platform, Webull also has a standalone desktop program. This software has a lot of the same features (and the same layouts) as its web cousin. Once again, market orders must be used for fractional shares. And a demo mode is integrated, although partial shares cannot be traded in the mode.


Buying Fractional Shares on Webull Platform


In live mode, you should follow the same outline described above to submit an order for fractional shares, being sure to select dollar amount in the quantity field.

Both the share amount and percent fields will result in whole shares being traded. The percent field can be used to trade with a percent of an account’s buying power. Webull rounds to the nearest whole share in this case.

Although the advanced order ticket cannot be used to trade partial shares, there is a third order form: the Active Trade ticket. On this one, it is possible to trade fractional shares. Once again, be sure to select dollars in the quantity field, and this time, you’ll need to check a box verifying your selection.


Trading Fractional Shares on Webull’s Mobile App


Third and final in Webull’s list of trading platforms is its very good mobile app. This obviously will be a different experience than trading on either of the computer platforms, but nevertheless a lot of the same tools are there. For example, the regular trade ticket has most of the same features, although there is an important difference.


Buying Fractional Shares on Webull App


First, you’ll want to select buy or sell. Next, you’ll want to select a market order. Then, choose the amount. This time, there will be a blue square next to the amount field. Tap on this to toggle between share amount and dollar amount. Obviously in this case you’ll want to choose a dollar amount. Type in the dollar amount you want (some preset values will be displayed after entering a cursor in the field) and then submit the order. Near the trade button, an estimated number of shares will be shown.

On Webull’s mobile app, a green diamond icon will be displayed on a security’s profile if the asset is eligible for fractional-share trading. Look for it in the top-right corner on an asset’s profile.


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Hypothetical Fractional-Share Trade on Webull


We decide to buy less than one share of Microsoft. Using the mobile app, we enter $10 in the quantity field after selecting a USD amount. With a current price of $303, that is equivalent to 0.033 shares. Using a market order, the only time-in-force option is day. We submit the order and get a quick fill.


Fractional-Share Cryptocurrencies on Webull


Cryptocurrencies at Webull trade in whole coins or whole dollars, much the same way securities trade. There is a $1 minimum buy amount. Although crypto transactions don’t have commissions, they do come with a bid-ask spread of 100 basis points.


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Updated on 1/29/2022.


About the Author
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.