Does E*TRADE offer partial share investing in 2022? Can you buy fractions (slices) of stocks through a partial share investment program?

E*TRADE Partial Share Investing

If you are looking for a way to invest in partial shares at E*TRADE, you may be disappointed to learn that the broker does not offer them. Unfortunately, E*TRADE does not make fractions of expensive stocks, like Amazon (AMZN), Berkshire Hathaway (BRK.A), or Tesla (TSLA), available to its investors. Continue reading to learn about alternatives.

Passive Fractional Share Investment at E*TRADE

While there is no direct partial share investment on E*TRADE, investors can ‘unlock’ fractional shares for their account following on very specific method. By activating the Dividend Reinvestment Plan, also known as DRIP, traders can receive partial shares in the same security that generated the dividends in the first place.

This method of partial share investment is best for investors with larger positions in dividend stocks, as it offers a passive form of partial share investment. The partial share sizes are directly correlated to the number of stocks that make up the position.

To turn on partial share investment at E*TRADE, simply navigate to the Accounts section of your account and toggle ‘Enroll account in DRIP’ to the ON position.


ETRADE Fractional Shares


Once you activate the DRIP setting for all future stock purchases, you will be asked to confirm your choice.


ETRADE Partial Shares Buying


Alternative to E*TRADE Fractional Share Investing

Most traders looking for partial share investing are seeking a more hands-on approach to their portfolio development and fractional share purchases. If you fall within that category as well, you will want to look elsewhere for your partial share investment opportunities.

One of our favorite alternatives for fractional shares is Webull. Here are some of the details about Webull’s partial share trading that make the broker such a good choice.

Open WeBull Account

Grab your last chance to get 12 free stocks valued up to $30,600.

Open WeBull Account


Buying Partial Shares on Webull

Webull offers partial share trading on most of the U.S. exchange-listed stocks on its platform. No matter how expensive a stock is, if partial share trading is available for that stock, you can buy a fraction of it for as little as $5.

Webull’s fractional shares make it possible to build a diverse, balanced portfolio including any mix of stocks and ETFs you find suitable. There is no need, therefore, to allocate a disproportionate amount of capital to one company or sector.

Partial shares also allow for investment strategies favored by highly capitalized traders, such as weighting a portfolio in conjunction with relative performance.


Webull Partial Share Order Entry


Commissions, Fees, and Minimums

When it comes to commissions and fees, partial shares enjoy the same zero-commission fee schedule that Webull applies to full share trading. There are no broker-side fees or commissions for partial shares.

For partial stock trade minimums, you can buy fractions of stocks as low as 0.00001, but that actual dollar amount minimum is set at $5 per trade.

Open WeBull Account

Grab your last chance to get 12 free stocks valued up to $30,600.

Open WeBull Account


Partial Share Investment by Platform

Currently, the only one of the three platforms that allows partial share trading at Webull is the mobile platform. The browser-based trading platform and desktop software offer many great management features for positions holding fractional shares, but you will need the app to purchase them.


Webull Stock Slice


Webull Fractional Share Order


From the mobile app, check for a blue diamond icon next to the stock’s name. When present, it means that partial share trading in available for that particular stock.

To purchase a fraction of a share, all that is required is to navigate to the trade menu of a selected stock, find ‘Amount in’, and toggle between USD and Share. The USD setting allows you to send a market order for the amount you specify during regular market hours.

Review of Webull

Read detailed review of Webull

E*TRADE Fractional Shares Summary

As a broker, E*TRADE does a lot of things right. The list of securities on offer, the professional trading platform, and intuitive mobile app, give E*Trade an edge in many respects. Unfortunately, fractional share investing on E*Trade is not available at this time.

Partial shares are an increasingly popular service that investors look for, and it is good to have a broker like Webull that offers products like fractional shares to retail investors.

To learn more about partial share trading at Webull, read our review here.


Webull


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Updated on 1/31/2022.