How To Buy Fractional Shares on Webull

How To Buy Fractional Shares on Webull

Webull is a commission-free stock trading app that offers fractional shares. This means that you can buy as little as one share of a company’s stock, which can be expensive if you try to purchase full shares.

Fortunately, Webull makes it easy to buy fractional shares by allowing you to purchase partial shares of stocks and ETFs (sometimes called fractional trading). In this tutorial, we will show you to buy a fractional share on Webull.

To get started, you’ll need to open a Webull account. Once your account is set up and funded, you can begin fractional share trading.

What are fractional shares and why might you want to buy them

a depiction of fractional share ownership

What are they?

A fractional share is a type of financial instrument that allows investors to purchase small portions of a stock or other security at the same cost as if they were buying it in larger blocks.

This type of investment is becoming increasingly popular given its ability to provide access to the stock market and other investments through fractional ownership.

Why should you buy them

One of the main benefits of fractional share trading is that it allows investors to diversify their portfolios without needing a large sum of money to do so. By splitting up the cost of a stock or security into smaller portions, an investor can choose to purchase a variety of different stocks and securities with their limited funds. This helps reduce risk by spreading investments out over multiple markets and asset classes.

Another advantage of fractional trading is that it allows investors to take advantage of the stock market without needing to commit large amounts of capital. By buying fractional shares, an investor can build exposure to stocks or securities more efficiently than if they had to buy entire blocks at once.

This makes investing more accessible for smaller investors who may not have the funds or desire to commit large amounts of money. If you want to learn more about your buying power, check out our article - Why Does Robinhood Say I Don't Have Enough Buying Power?

Now that you know what fractional shares are and why they can be beneficial, let’s take a look at how you can start fractional trading on Webull.

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How to purchase Webull fractional shares

The webull logo

Open a Webull account

Once you have opened a Webull account and funded it, buying fractional shares during normal trading hours is easy. To begin, log into your Webull account and select the option to buy stocks or ETFs. From here, you will be taken to the order entry page where you can enter the stock or ETF you would like to buy.

Purchase your shares

To make a fractional trade, when prompted, enter the dollar amount you would like to buy. If you wish to purchase fractional shares, simply type in the number of shares you would like to purchase. Once your order has been entered, Webull will automatically adjust for any available fractional offers on their platform.

Diversify your portfolio

With fractional share investing, you can diversify your portfolio more effectively and invest even if you don't have a lot of money. It is important to remember, however, that with any investment there are risks involved. Be sure to do your research before investing in fractional shares and always consult a financial advisor or broker if needed.

Investing in fractional shares can be a great way to get started in the stock market and grow your wealth, so take advantage of the opportunity today!

Things to keep in mind when buying Webull fractional shares

An iPhone with fractional shares

When it comes to investing, Webull fractional share trading can be a great way to diversify a portfolio without having to take on too much financial risk. While there are many advantages to investing in fractional shares, there are also some important things that should be kept in mind before taking the plunge.

What are the benefits of fractional ownership?

Fractional ownership of shares offers a number of significant benefits for investors. One key advantage is that it allows for diversification of investments.

Rather than having to invest large sums into a single company’s stock, fractional ownership allows investors to spread their money across multiple stocks, reducing the risk that comes with investing in just one entity. Additionally, fractional ownership enables investors to purchase the same stock at a fraction of its price.

This makes it easier for those with limited funds or who are just starting out in the investment world to get started without having to invest large amounts of money. With fractional ownership, investors can also buy and sell shares more quickly, allowing them to take advantage of short-term market fluctuations.

How do fractional shares work?

Also known as "partial shares,"  fractional stocks are stocks that are divided into smaller parts and purchased in order to gain access to a portfolio of investments.

This can be an attractive option for investors with smaller budgets, who would otherwise have to forego investing in certain companies due to their high price per share. fractional trading provides more flexibility and access to a wider range of investments, allowing investors to diversify their holdings without having to invest a large initial amount.

Additionally, fractional shares are traded in the same manner as whole shares and can be bought and sold at the going market rate. This makes it easy for investors to buy and sell parts of their portfolio quickly and easily.

What are the risks associated with fractional ownership?

Fractional shares are a relatively new development in the world of investing and come with both benefits and risks that should be carefully considered. In short, fractional shares involve owning a portion (or fraction) of a single share instead of the full share.

Fractional shares come with a number of risks that investors should be aware of before investing. The most obvious risk is the potential for significant price fluctuations, as a single share can easily move up or down in value in short order.

Additionally, fractional shares are still subject to the same volatility and market risks as traditional shares, so investors should ensure they fully understand how fractional shares work and how their investments may be affected by market movements.

Another risk to consider is the potential for illiquidity with a fractional position. Since they are a relatively new concept, there is no standardized way of trading them yet. As such, there may not be many people willing to buy or sell them, which could make it difficult to make market orders or sell the shares at a price that is acceptable to you.

Finally, fractional share trading may also come with higher account management fees or trading fees than traditional shares. This is because many brokerages and investment platforms charge additional fees for smaller investments or fractional share trading.

What should you look for when fractional share trading?

When it comes to buying a fractional share, there are a few key considerations that should be taken into account. First and foremost is the cost of the share.

Generally speaking, buying in bulk will result in significant cost savings as compared to purchasing individual shares at full prices. As such, investors looking to purchase fractional shares should shop around for the best possible deal.

It’s also important to research the company offering the fractional shares to ensure that it is reputable and trustworthy. Additionally, investors should consider any additional fees associated with buying webull fractional shares and factor those into their overall cost calculations.

Examples of stocks and ETFs that offer fractional trading

an etf stylised under a magnifying glass

Fractional shares are an increasingly popular investment tool that allows even the most budget-conscious investors to start building a portfolio.

Fractional shares are simply portions of a regular stock or exchange-traded fund (ETF) that can be traded as if they were full shares. By splitting up full stocks and ETFs into smaller pieces, it's easier and more affordable for investors to diversify their portfolios, since they can buy into companies with higher stock prices without investing a large amount of money up front.

Fractional ETFs

Many popular ETFs(exchange traded funds), such as the SPDR S&P 500 ETF (SPY), offer a fractional share, allowing investors to purchase small parts of the fund without having to buy an entire share. They can also be used to purchase high value stocks of companies with high share prices, such as Amazon or Google. By purchasing a fractional share of these more expensive stocks, investors can gain exposure to their desired investments without the need for a large up-front investment.

Fractional Stocks

Not all brokers offer this. Webull is a leading stock trading platform that offers fractional shares. It enables investors to purchase any number of fractional blue chip stocks, ETFs, and options from popular companies such as Apple, Microsoft, Amazon, Google, and Tesla—all without the need for a large up-front investment. If a stock has a green diamond icon the stock details page, it can be traded fractionally on Webull.

Final thoughts

a phone with a portfolio of fractional tocks

If you're looking to invest in the stock market but don't have a lot of money to spare, buying webull fractional shares may be the perfect option for you.

Fractional shares let you purchase portions of a share, rather than having to buy a full one.

This means that you can get exposure to stocks without having to invest large sums of money upfront. You can even set up an automated investing plan so that you're regularly buying fractional shares and building your portfolio over time.

That’s it! You have just invested in fractional shares. So, have fun investing in the stock market and good luck on your investment journey!

"And remember--always buy fractions with caution. You don't want to wind up with too many pieces of pie!".  

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