Best Fractional Share Investing Brokerages of 2023

To help you choose the right brokerage company to invest with, we have made this analysis based on reputation and low fees. Learn more.

Investing is a crucial piece to being able to grow your wealth over time. Over the course of time, your investments will add up and you’ll be able to reap the benefits. The importance of investing starts with the first step. Investing is a crucial part of the investing process. It involves putting money into something that will later be used to make more money, or to help with your current monetary needs.

Furthermore, investing is a key component of maintaining a financial well-being. When you invest, you are putting money to work in ways that will impact your long-term goals. An investment can be a loan for a business, a purchase of a home, or a retirement account. However, it is important to remember that investing has risks. What you need to do is to be sure to consider the risks and understand the return on investment. When you invest, you need to be mindful of the risks and the return on your investment.

 As a person who is looking to save more, you need to take the time to invest your money into a mutual fund or stock. It is important to build your personal portfolio with a variety of investments. For example, if you are looking to build a retirement portfolio, take the time to invest in both stocks and bonds. As you build your portfolio, you will have an idea of your risk tolerance level. 

Overview

Fractional shares are a type of investment that you have to get with a broker. It is an investment that you can add to your portfolio. These shares are generally based on a percentage of an underlying asset. For example, if you wanted to purchase a fractional share of Apple, you would pay $100 for a fractional share worth 1/2 of an Apple share. This is because a fractional share represents a percentage of an underlying asset.

With Fractional Shares, you are able to own a piece of the investment, but not the entire thing.

The key to this type of investment is that you’re getting a percentage of a company, but also have the option to have an initial investment that you can take out. When you’re investing in a company, you’re able to have a lot more control over your investments and are not limited to one share.

Why should you invest in Fractional Shares?

Moving forward, the things that make the most sense to invest in are going to be based on the needs of the individual. These type of stocks are going to be made up of fractional shares. With fractional share investing, the market becomes more flexible and easier to navigate. As the world has been trending towards individualistic investments, fractional shares have been a boon for investors. 

While finding the best fractional share investment broker is not easy, this blog will give you a guide to the top four brokerage houses that specialize in this type of investment.

1. Charles Schwab

As a fractional share investing broker, Charles Schwab offers a range of options for traders. The brokerage is well-known for its online trading platforms, which have been lauded for their user-friendly interface, intuitive design, and easy-to-navigate trading system. The brokerage also offers a range of other benefits including free trade execution, no account minimum, and no commission rates.

If you are new to investing, this is the brokerage for you. Fractional share investing can be risky. To avoid risk, use Charles Schwab’s fee-based financial planning tools to help you manage your portfolio.

Now, in case you are an experienced investor and have a high tolerance for risk, a financial advisor may be able to recommend a specific plan that suits your needs.

Other account types offered by Charles Schwab are:

• Taxable brokerage
• Retirement
• Education
• Custodial
• Trust

As mentioned, the broker doesn’t charge any commission rates or fees which makes it perfect for any beginners with limited resources to invest in fractional shares.

2. Fidelity Investments

Fidelity Investments is a company that offers a wide range of services to its customers. It is a company that offers a variety of types of investments, including options, mutual funds, retirement, and educational savings accounts. Fidelity offers a variety of services for those who would like to invest their money outside of the stock market. Fidelity Investments is one of the top providers of fractional share investing services.

Moreover, Fidelity is one of the top fractional share investing brokerages of the year in 2023, meaning that you can invest with Fidelity and not have to worry about the risks of investing on your own. 

Fidelity has a wide array of investments, including stocks, bonds, mutual funds and more. The company has been in the business since 1946, and it has been able to earn a 4.5-star rating from the Better Business Bureau. Fidelity is also one of the only companies out there that offer a 401(k) plan with as little as $100 to start investing.

Other account types offered by Fidelity are:

• Taxable brokerage
• Retirement
• Education
• Custodial
• Trust Fund
• HAS

Take note that there are no requirements when it comes to depositing your money. Also, there are no commissions or stock trading fees to be able to start with Fidelity.

3. Betterment

Betterment is a broker that offers a range of investment options, including stocks, ETFs, bonds, and mutual funds, among others. They are one of the best fractional share investing brokerage. They offer many different tools, including a mobile app and financial consults, as well as provide access to an army of financial experts and an easy to navigate website. They offer low fees and earn a high ROI, which is what makes them one of the best fractional share investing brokerage of 2023.

Other account types that Betterment offers are: Taxable brokerage, retirement, and trust. You also don’t have to worry about having a minimum deposit but the brokerage does have an annual fee that is 0.25%.

4. InteractiveBrokers

With InteractiveBrokers, you can buy, sell and trade shares with the click of a button. They offer over 17,000 stocks on the platform, and they have around 100 different commission-free ETFs, which means that you can trade without paying any commissions.

If you’re looking for a broker, InteractiveBrokers is the place to go – especially when it comes to fractional share investing! This is because the broker offers an easy way to invest with a fractional share. Ideally, the fractional share should be a small percentage of your total investment. For example, if you wanted to invest $100, you should only invest $1. Yes, you heard it right. You can do that with Interactive Brokers! 

Other account types offered by Interactive Brokers are:

• Taxable brokerage
• Retirement
• Custodial
• Trust

The company is also known for being the best platform for those who are active traders. There are no recurring or commission fees, or even minimum deposits! 

How to choose the Best Fractional Share Investing Brokerage?

Despite the skepticism surrounding the current market climate, a number of people have turned to fractional share investing as an excellent way to invest. It is important to know that fractional share investing is not for everyone. 

Before you decide to invest in this type of brokerage, you should be able to answer the following questions. If you are considering a fractional share brokerage, use the list below to find the best brokerage for your needs. 

• What is the minimum investment you are looking to make? 
• Do you have a specific time frame you are looking to invest in or are you looking for a long-term investment? 
• Are you comfortable with the amount of risk you are willing to take on? 
• What is your comfort level with the potential outcome of your investment?

Once you have answered these questions, you are now ready to decide the type of brokerage perfect for your journey in investing on fraction shares! 

Final thoughts

If you are looking for a broker to open an account and invest in a variety of securities, this is the blog for you. We hope you enjoyed our article about the top brokerages for fractional share investing. This is a great place to start if you are looking for a place to open an account and invest in a variety of securities before deciding if you want to invest in a full-service brokerage. Also, make sure that you have learned to think critically about which brokerage you should go with. It’s never a bad idea to do your research and work with a professional.