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Trading in Fractions: Where to Get Started

In recent years, trading in fractions, or fractional shares, has revolutionized how investors approach the stock market. This innovative method allows individuals to buy a portion of a share, making investing more accessible and affordable. If you’re interested in getting started with fractional trading, you might be wondering: Where can you trade in fractions? In this article, we’ll explore some popular platforms that offer fractional trading and highlight the benefits of using them.

  1. Online Brokerage Platforms

Many online brokerage platforms have embraced fractional trading, allowing investors to easily buy and sell fractional shares. Some of the most well-known platforms include:

– Robinhood: Known for its commission-free trading, Robinhood allows users to buy fractional shares of stocks and ETFs. Its user-friendly interface makes it an excellent choice for beginners looking to explore fractional trading.

– Fidelity: Fidelity offers a feature called “Stocks by the Slice,” enabling investors to purchase fractional shares of thousands of stocks and ETFs. This platform is well-regarded for its research tools and customer support.

– Charles Schwab: Schwab’s “Stock Slices” feature lets investors buy fractional shares of any stock in the S&P 500. This platform is ideal for those looking for a comprehensive investment experience with robust resources.

  1. Investment Apps

Several investment apps cater specifically to younger or tech-savvy investors by offering fractional trading options. These apps often provide a streamlined experience for buying and selling fractional shares:

– Acorns: Acorns rounds up your everyday purchases and invests the spare change in fractional shares. It’s a great way to start investing with minimal effort, making it perfect for beginners.

– Stash: Stash allows users to start investing with just $5, offering fractional shares of stocks and ETFs. The app also provides educational resources, helping users learn as they invest.

  1. Robo-Advisors

Robo-advisors are automated investment platforms that create and manage a diversified portfolio for you, often utilizing fractional shares. Some popular robo-advisors include:

– Betterment: Betterment uses fractional shares to build diversified portfolios based on your financial goals. This automated approach can be ideal for those who prefer a hands-off investment strategy.

– Wealthfront: Wealthfront also employs fractional shares to optimize your portfolio and maximize returns. It’s designed for investors who want to benefit from automation while still having access to fractional trading.

Conclusion

Trading in fractions offers a fantastic opportunity for investors to enter the stock market with lower capital requirements and greater flexibility. With numerous platforms available, including online brokerages, investment apps, and robo-advisors, you can easily find a solution that fits your investing style.

If you’re ready to start trading in fractions, consider opening an account with Tiger Brokers. Known for its user-friendly platform and competitive pricing, Tiger Brokers makes it easy to invest in fractional shares of a wide range of stocks and ETFs. Start your fractional trading journey today and unlock the potential of the stock market with Tiger Brokers!

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