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

Buying Fractional Shares of Stock on Etrade

You cannot directly buy a fractional share of stock (such as Berkshire Hathaway or Google) on Etrade or any of its traditional competitors such as TD Ameritrade, Fidelity, or Schwab. However, you can invest in partial shares of stocks by using brokerage called M1 Finance.

Open M1 Finance Account

Invest for FREE - pay no broker commissions or fees.

Open M1 Finance Account


$0 Commission

Another major thing that sets M1 Finance apart from other firms and makes it the best broker for investing in fractional shares, is that there are no commissions to pay for investing. That's right - you pay $0 commission at M1. The broker makes money on optional services, such as lending funds and credit cards.

Partial Shares on Etrade Through DRIP

If you own shares of any stock of Etrade and you have DRIP set up for this stock, then reinvested dividends will often result in fractional shares.

Etrade Overview

Etrade Financial Corporation (E*Trade) is a leading financial services company that offers online discount brokerage and banking services to retail investors. E*Trade is a public company listed on the NASDAQ stock exchange and is one of the pioneers of the online brokerage business, having been founded in 1982. Here's a review of the Individual Retirement Account (IRA) investments and services available at E*Trade.

Etrade trading platform (Power Etrade Pro) is well-designed and easy to use. Executions are fast. Company offers lots of good analytics and research tools. Customers get access to Level 2 quotes and highly rated mobile trading application. Unfortunately, Power Etrade Pro platform is only available to customers executing 30 stock or options trades during a calendar quarter.

The firm has a total of only twenty five actual branches, spread out across the US. The chances are you will have to do your interactions through the telephone, ATM, or via the web. The online interface is very user friendly and easy to use. Online education is available for those needing assistance or brand new customers just getting started with an investment account.

The Etrade online education center is where you can go to watch informational videos and view web based seminars taught by investing pros. This is a great place to gain basic information about the available investment options and to get some help choosing the right account type to meet your specific needs. Surprisingly, Etrade also offers some live investor education seminars which provide more in depth information for those living in close proximity. For investors who are a bit more savvy there is plenty of online research, including tips and insights in addition to market analysis, commentary and various trading platforms.

Live online chat is available for customers, this is the method we personally prefer to use when we have a general question or when I am unsure of where to find something on the site. Aside from the online resources and support there is a 24 hour toll free customer service line if you prefer to pick up the phone and talk to someone in person. The downside to this option, in our experience, is that there are often long hold times.

Etrade App Review
Etrade IRAs have no minimum investment requirement, no annual fees, and no inactivity fees. Additional investments to IRAs may be made in any amount.

Our conclusion: Etrade has no penny stock fees and it is overall a very good company. But the firm's commissions are expensive. Active traders as well as "buy and hold" investors might also prefer TD Ameritrade, which gives clients access to the best trading platform, virtual trading and an online user community and doesn't charge penny stocks fees.


M1 Finance


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