Best Fractional Shares Investing Apps 2020

Fractional shares makes investing accessible to many.

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Fractional share investing lets you buy pieces of stock instead of a full share of stock. The main benefit of fractional shares is the ability to own shares of companies like Amazon and Google that may be out of reach to many.

The great news is that more and more online brokerages are offering investors the opportunity to buy fractional shares of stocks and ETFs. Some apps even let you buy them for as little as $1 without any trading fees either.

My favorite fractional share investing apps are:

Why Fractional Shares?

To make investing available to more people, many online brokers have begun selling fractional shares online. The brokers allow you to invest in parts of stock as opposed to buying an entire share. They do the tracking so you can focus on automating investing to one day own a full share of any stock.

Fractional shares are a good option to grow your equity with a company like Amazon or Google. You don’t need thousands of dollars and can start with as little as $5 with some online brokers. With fractional shares, you can buy and sell like a full share of stock, but the goal is to help you build up, not stock trading.

Best Fractional Share Investing Apps of 2020

The following are the best apps to help you own shares of your favorite companies:

Public: Best Social Interaction

Public makes the stock market social. Follow other investors, discover companies to believe in, and invest with any amount of money. Swap insights, gain knowledge and learn about investing with friends and other interesting people.

  • Invest in fractional shares called slices with as little as $5
  • Access original ETFs from Vanguard, BlackRock, and others
  • No day-trading allowed

Account Fees: None
Investment minimum: None
Trading Fees: None

New Account Bonus: Open a Public account and get a free slice of stock.

>> Get started with Public

Robinhood: Best Original Free Trading App

Robinhood is an online brokerage offering zero commission trading. It offers a streamlined investing app that is good for beginners and seasoned investors who desire simplicity and ease of use. Make trades of stocks, exchange-traded funds (ETFs), and cryptocurrency.

  • Buy and sell shares with no commission fees
  • Easy to join and intuitive platform
  • Access stock performance history

Account Fees: None
Investment minimum: None
Trading Fees: None

New Account Bonus: Get a free stock for opening an account and completing the signup process.

>> Get started with Robinhood

M1 Invest: Best for DIY Investors

M1 Finance is an investing platform that combines trading with Robo-advisors. It’s good for beginners and seasoned investors alike. With M1, you get automated and free investing without trading fees and commissions. Choose to invest in what you want or choose portfolios (M1 Pies) created by their experts.

  • Choose investing pies and copy portfolios of others
  • Offers automatic features such as rebalancing and dividend reinvestments
  • Robust and interactive investor education feature

Account Fees: None
Investment minimum: None
Trading Fees: None

New Account Bonus: Receive $10 after completing the signup process and funded $100 within 90 days.

>> Get started with M1 Invest.

Stash Invest: Best for Beginners

Stash offers fractional shares investing coupled with investor education. With Stash, you can easily select themed investments through ETFs or buy shares of companies.

  • Simple and easy to use interface
  • Robust and interactive investor education tools
  • Set one-time transfers and recurring automated investments

Account Fees: $1 per month
Investment minimum: $5
Trading Fees: None

New Account Bonus: Receive $5 after completing the signup process.

>> Get started with Stash.

Additional Fractional Shares Investing Apps

Stockpile: Best for Gift Giving to Kids

Stockpile is an online brokerage where you can buy fractional shares of your favorite companies or index funds starting at $25. They are best for teaching kids about investing with the use of gift cards.

>> Get started with Stockpile

SoFi Active Investing: Best for Fractional Shares

SoFi Active Investing is an online brokerage that allows you to make free stock trading and zero-commission trades. You can buy fractional shares of stocks and index funds called Stock Bits for as little as $1.

> Get started with SoFi Active Investing

Bottom Line: Should You Buy Fractional Shares

Fractional share investing is like saving money. Think of the full share price as the financial goal and you’re investing to reach that goal. The benefit is owning shares, even if its just a fraction, that can grow in value far better than a standard savings account.

If you want a bit more assistance, I recommend looking at Betterment and M1 Finance both of whom offer fractional shares with a bit more direction. Betterment is best for those who want a robo-advisor to do most of the work. M1 is great for those who want a bit more control. You certainly can try both and see what works best for you. Learn more about the difference between micro-investing and robo-advisors.

 

Jason Vitug

Jason is the founder of phroogal, creator of the award winning project Road to Financial Wellness, and author of the bestseller and New York Times reviewed book, You Only Live Once: The Roadmap to Financial Wellness and a Purposeful Life.

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