Does Webull offer trading/investing in partial (fractional) shares of high value stocks such as Berkshire Hathaway (BRK.A), Amazon (AMZN), Tesla (TSLA), Google (GOOG), or Facebook (FB)?

Webull Partial Shares Investing

Do you want to invest in partial shares at Webull in 2022? Are you looking to build a diverse portfolio with the most valuable stocks and ETFs listed on the U.S. stock exchange for as little as $5 per share? Invest in names like Berkshire Hathaway, Amazon, NVR Inc., and Alphabet Inc., with any account size today. Keep reading to learn more about Webull fractional shares investing.

What Is Partial Shares Investing

Partial shares investing is a relatively new way to view portfolio building, and stock/ETF investments in general. Instead of following the traditional path of buying whole shares of the securities that you are interested in, you can now select any stock that you want. It doesn’t matter if each share is hundreds of thousands of dollars (i.e., Berkshire Hathaway), thousands, or even hundreds of dollars. If you believe in the company behind the ticker, you can now buy the stocks at any dollar amount you choose.

Essentially, you are buying pieces, or slices as they are sometimes called, of stocks listed on the U.S. stock exchanges. Webull sells you fractions of your favorite stocks to help you build the portfolio that meets your goals and expectations.

Webull’s Fractional Shares Investing

While a few brokers now offer some form of fractional shares, Webull’s take on fractional share investing is a bit different.

One of the main differences is that investors can only buy fractions of stocks and ETFs when setting up partial share orders. Any order that you set up for partial shares that has a dollar amount larger than the ‘current’ market price will not be sent.


Webull Partial Share Order Entry Fail


For example, if ticker XYZ is currently selling for $175 per share, it is possible to set up a partial share order for any dollar amount between $5-$174.99. As soon as your order amount exceeds the $175 mark, it is counted as a normal market order and will actuate in whole shares only.


Webull Partial Share Order Entry


Following the same example, if you wanted to buy 1.5 shares of stock XYZ, you would first need to buy a single share. Then, you would need to place a fractional share market order for $87.5. The resulting position would 1.5 shares, but it would take you two orders to get there.

Another important thing to note when it comes to Webull partial share investing, is that fractional shares are currently only available on the mobile app.

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Webull Fractional Shares Minimums

As mentioned, there are a few partial share minimums to keep in mind when buying or selling fractional shares on Webull.

These are a $5 minimum on partial share trades and/or a 0.00001 share minimum.

In general, you would never need to worry about the share minimum as most stocks are not valuable enough to allow a trade set to 0.00001 shares. To illustrate, let’s consider Berkshire Hathaway (BRK.A), the most expensive stock in the U.S. If BRK.A is trading at half a million dollars, the share minimum would match the $5 minimum. For any stock priced lower than $500,000, you’d need to place an order well above the 0.00001 minimum.

Which Securities Are Available for Partial Share Investing

Webull offers fractional share investing on most of its stocks and ETFs. The easiest way to see if a security can be traded in partial shares, look for the blue diamond icon next to the ticker symbol.

Keep in mind, however, that the blue diamond icon can only be viewed on the mobile app. The reason behind that is a simple one: fractional shares can only be traded on the mobile app at this time. According to Webull, the broker is looking at options to add more fractional share functionality to its other trading platforms. For now, though, you will need to access partial shares on the mobile platform.

So, now you know how to find and trade partial shares on Webull. Let’s cover a few of the finer points in more detail.


Webull Stock Slice


Webull Fractional Share Order


Day Trading Fractional Shares on Webull

A popular question that investors at Webull have is how to day trade partial shares. It is certainly possible, but here are some key points to consider.

Factional share trading falls under the same rules that all other stocks abide by. So, any trading account with less than $25,000 in it can only make 3 round-trip trades per rolling 5-(trading)day period. For fractional shares, that presents a bit of an issue. Unless you are trading fractions of very expensive stocks, 3 day trades in a week may not produce the types of profits day traders usually look for.

That said, if your account meets the $25,000 threshold, you can certainly day trade partial shares just as you would any other stock. Just keep in mind the fact that you can only do it on mobile, and you can not buy more than 99% of one share when trading fractional shares on Webull.

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Short Selling Partial Shares

Short selling partial shares is not currently available at Webull and at other brokers.

Partial Shares and Extended Hours Trading

At this time, partial shares can only be bought and sold during regular market hours. While it seems like Webull may offer extended hour trading for fractional shares at some point in the future, there is no indication as to when that might take place. For any partial share investing that you plan to do on Webull, it will have to be when the markets are open for general trading.


Webull Fractional Shares


Extended Hours Trading Alternatives

If you are interested in extended hours trading at Webull, there are some good alternatives to partial shares that you can consider. Instead of buying fractions of higher-priced stocks, Webull offers access to an extensive selection of stocks that you can buy and sell in whole shares during the extended hours sessions.

Extended hours trading has many benefits that traders can take advantage of, and Webull is an excellent broker to take part in post- and pre-market activity.

If you are not familiar with extended hours trading, here are some of the more important concepts to know.

What is Extended Hours Trading?

The markets are ‘open for trading’ for much longer than many people think. While it is certainly true that the time between the opening bell at 9:30 EST and the closing bell at 4:00 EST is the most active period for trade, the markets are actually open for trade for several hours before and after the daytime session.

Extended hours trading is broken into two sections: pre-market and after-hours. Pre-market trading hours run from 4:00 am EST to the opening bell at 9:30 am EST. After-hours trading goes from the closing bell at 4 pm EST to 8 pm EST.

The nature is trade in extended hours sessions is quite different from what is commonly seen in regular market hours. There is less volume, which results in extremes that traders can benefit from.

On one end, the lower participation can lead to slower price movement and more predictable price movement. At the other extreme is high volatility and large swings in price. The latter group often sees more volume as many traders look to capitalize on extended hours trading opportunities.

There are many good trading techniques in use that take advantage of both extremes.

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Extended Hours Trading at Webull

Investors at Webull have access to the complete extended hours session, unlike the abbreviated extended hours sessions offered at many other brokers. To trade the extended hours session at Webull, you can either place orders during the extended hours or outside the extended hours session. Here’s how:

From both the browser-based trading platform and desktop trading software, placing an order to fill in the extended hours session is as easy as selecting ‘Yes’ for Extended Hours on the order ticket.


Can I Buy Fractional Shares on Webull


From the mobile app, select Limit as your order type. Once selected, you will see an option to toggle between ‘Only Regular Hours’ and ‘Include Extended Hours’.


Can You Buy Fractional Shares on Webull


Pros and Cons of Extended Hours Trading

As with everything in trading and investing, there are some aspects to extended hours trading that can be viewed as either positive or negative, depending on what you are trying to do. Here are some common pros and cons associated with extended hours trading.

Pros

Longer Trading Day – At Webull, investors get an additional 9.5 hours of time in the markets.

Respond To News – Whether it’s earnings, a problem with a company or supply chain, an overseas conflict, or anything in between, there are often events that take place outside normal market hours that have the potential to move prices. Being able to respond to these types of events as they unfold can be a huge advantage.

Respond to Global Market Sentiment – What happens in the markets around the world can have an impact on our equities here in the U.S. Having access to extended hours trading helps you stay on top of any effects brought on by global markets.

Cons

Less Volume – There are far fewer trades taking place in the off-hours. Less liquidity can lead to unfavorable fills, wider spreads between the bid and ask prices, and greater volatility (greater volatility is not always a con, of course, but there is enhanced risk in markets experiencing large price swings).

Limited Order Types – Fewer order types are generally allowed during extended hours trading. Traders taking advantage of off-hours trading are usually confined to limit orders.

Order Fill Issues – It is often possible that limit orders sitting in the market can go unfilled. This goes for opening and closing positions.

Trading Stocks at Webull

There is no doubt that extended hours trading can offer a range of benefits that you can take advantage of. The fact that Webull offers the entire extended hours session to its customers adds to those advantages, and some investors can certainly benefit from trading in the pre-market or afterhours sessions at Webull.

That said, the risks don’t sit well with everyone. If you feel that the risks outweigh the benefits, you’ll be happy to know that successful investing does not depend on the ability to trade in the off-hours.

Webull offers a suite of professional-level stock trading platforms to all of its customers, and they are all free to use. Investors have access to nearly every U.S. exchange-listed stock and ETF, and the options contracts to go with them. The market overview, research, scanning, charting, zero-commission fee schedule, and optional enhanced market data, all come together to create one of the better trading tools in the industry.

Pros and Cons of stock trading at Webull

Stock trading at Webull comes with many advantages, but there are a few considerations as well.

Pros

No (broker side) Fees or Commissions – Webull does not charge for trades on its platform. This includes commissions on stocks, ETFs, and options contracts.

No Platform Fees – You will never pay any fees for the platforms at Webull. For deeper market insights and some news feeds, you can pay an additional subscription fee, but it is not a requirement.

Market Overview and Industry Highlights – From Webull’s trading platform, investors get a ‘bird’s-eye view’ of the domestic and global markets, 24/7. In addition, there are listings of industry best/worst performers to keep traders in the know and to provide perspective.

Scanners – Webull’s scanner allows to you to narrow stock selection by exchange, market cap, volume, industry, and cost.

Paper Trading – There is a fully functional demo account that users can utilize for free. This can be used to test strategies, learn, and more.

No Inactivity Fees or Account Minimums – You don’t have to maintain an account balance at Webull. Nor do you pay any fees if you need to take a break from the markets.

Advanced Order Entry – Webull offers a number of advanced orders for stock trading, including OTO, OCO, OTOCO, Limit+Profit/Loss Bracket, and Market+Profit/Loss Bracket.

Margin Available – The use of margin in Webull brokerage accounts means that you can sell stocks short, use margin to buy additional stock, and more.

Cons

No Penny Stocks – There are no pink sheet stocks available at Webull. If you are looking for OTCBB stock trading access, consider using another broker like Fidelity, Firstrade, or TD Ameritrade.

No Foreign Exchange-Listed Stocks/ETFs – For U.S.-based customers, there is no stock access for securities listed on foreign exchanges.

Limited Live Support – Instant access to support personnel is currently lacking.


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Updated on 1/31/2022.