Does USAA 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 USAA

You cannot directly buy a fractional share of stock (such as Berkshire Hathaway or Google) on USAA or any of its traditional competitors such as TD Ameritrade, Fidelity, or Schwab. However, you can invest in partial shares of stocks by using a $0-commission brokerage firm called Public.com.

Open Public Account

Free stock bonus! Stock, ETF, partial shares trades with $0 fees.

Open Public Account


USAA Mutual Fund Commissions

All USAA funds are no load, although some carry a transaction fee. USAA and non-USAA mutual funds that carry a transaction fee are $45 to buy and sell. Using a representative to place a mutual fund trade does not cost anything extra. USAA mutual fund commission is higher than some other online brokers, including Ally Invest ($9.95).


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USAA Mutual Fund Fees

There are different minimum initial purchase amounts for different USAA funds. One fund, UMAFX, requires no minimum purchase amount; while several others have a $1,000,000 minimum. Many of the company's mutual funds maintain a $3,000 buy-side requirement. Alternatively, investors can sign up for automatic purchases of $50 or more per month. Doing so waives the initial minimum purchase requirement.

Other fund families that are available through USAA establish their own initial purchase requirements. Some of these are as low as $0 and as high as $200,000,000. Some of the funds that have a zero initial purchase amount include Putnam, MassMutual, PNC, and Columbia.

USAA does not charge a short-term redemption fee for mutual fund sales within a certain time frame. However, individual mutual funds may. For example, some American Century funds that are available through the USAA Fund Marketplace do charge 2% when they are sold in less than 2 months after acquisition. Be sure to check the prospectus before making a purchase of any specific fund.

The USAA website has a mutual fund screener that returns several USAA-branded mutual funds. Funds from other families are not included in these results, although a separate Fund Marketplace is available with thousands of funds from several different families, including Fidelity, Janus, Vanguard, and others.

Mutual fund results can be sorted by several criteria, including Morningstar rating, manager tenure, 10-year performance, expense ratio, and category. More than 15,800 funds in total are available through USAA. This number is significantly higher than what is available at other brokerage houses, including Merrill Edge and E*Trade. Only Vanguard has more funds.

A wide variety of mutual fund types are available with USAA. The broker has several target-date funds, for example. These are designed for retirement savers. There are also sector funds that focus on specific areas of the economy. There are USAA money market funds, bond funds, stock funds, and index funds. Some products are tax exempt, which is great for investors who are in a higher tax bracket.

Over 2,100 mutual funds at USAA carry neither transaction fee nor load. This selection is larger than Capital One Investing and Firstrade. Compared to Fidelity and TD Ameritrade, USAA seems to have less information on fund trading.



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