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Fractional shares explained: how to invest a small amount in an expensive stock
What fractional shares are, how they work, what you give up and why fixed fees matter on small sums.
In short
- A fractional share lets you invest a chosen amount instead of buying a whole share, so a high share price no longer blocks you.
- You usually get dividends in proportion, but may have limits on voting and on moving the shares to another broker.
- A small amount does not reduce the risk of a single company, and a fixed fee can take a large share of it.
What a fractional share is
A fractional share is a portion of a share. If one share costs 1,000 and you invest 100, you own one tenth of it. Instead of choosing how many shares to buy, you choose how much money to invest. Brokers usually offer this by holding whole shares and allocating fractions to clients, or by combining several orders.
| Whole shares | Fractional shares |
|---|---|
| You choose how many shares | You choose how much money |
| An expensive share needs a lot of money | You can start with a small amount |
| Full shareholder rights, in general | Dividends are proportional; other rights may be limited |
| Usually easier to transfer to another broker | May need to be sold before moving |
What you may give up
- Voting rights. Many brokers limit or do not support voting on fractions.
- Portability. Some brokers do not let you transfer fractions out: you sell and withdraw the cash, which can trigger a sale you did not plan.
- Availability. Not every stock or fund can be bought in fractions.
Three things to check before using them
- The fixed fee. On a small trade, a fixed commission can be a large percentage, as shown in broker fees explained. Round-trip costs matter more than the headline price.
- Concentration. Putting a small sum into one company is still putting it into one company. Spreading small sums across a broad fund is a different exposure: see ETFs versus single stocks.
- Your plan. Do you intend to hold for years, or to trade often? Frequent small trades mean frequent costs.
When fractional shares can be useful
| Situation | General consideration |
|---|---|
| You want to invest a fixed monthly amount | Fractions let the whole amount be invested, with no leftover cash |
| You are starting with a small sum | You can spread it over more than one product, if costs allow |
| You want to try a position before committing more | You can do it, but small trades with fixed costs may be inefficient |
| You plan to switch brokers soon | Check first whether fractions can be transferred |
These are general considerations, not recommendations. To see what small regular amounts can become, and how costs reduce that, try the compound interest calculator.
A concrete example: fractional shares on eToro
Data from eToro's help pages and fee table, checked on 3 October 2026. They can change: verify on the site before deciding.
- Amount, not shares: you invest a chosen amount. the minimum trade size is $10 for stocks and ETFs, according to eToro's help centre. Other ways of investing have higher minimums: $200 to copy a Popular Investor and $500 for Smart Portfolios (some require more). See copy trading versus copy investing and Smart Portfolios explained. Check the current amounts in the app.
- Dividends: proportional to the portion you own, for example 0.50 on a 1.00 dividend if you own half a share.
- Voting: supported for fractional shares only for US securities.
- Moving out: according to eToro, fractional shares cannot be transferred outside the platform. If you leave, you sell the fraction and withdraw the cash.
- Costs on stocks: $1 or $2 to open and to close a position, depending on country of residence and exchange. On a trade near the $10 minimum a fee of that size would be a large share of the amount, so this matters for small positions.
- Costs on ETFs: zero commission on ETF trades, regardless of size, for non-leveraged positions. For small amounts this removes the commission line, but not the ETF's own yearly cost or market risk.
The fee point is the practical one: with a fixed commission on stocks, small amounts fit better in ETFs on this fee table, which is a cost observation, not a recommendation. If you want to check the details on the platform, you can open eToro through my affiliate link. I earn a commission if you open an account: read the disclosure.
Capital at risk. The value of investments can go down as well as up, and you may lose some or all of the money you put in. Copy trading and Smart Portfolios do not remove this risk and are not investment advice. Past performance is not a guide to future results.
Frequently asked questions
Do fractional shares pay dividends?
Generally yes, in proportion to the part you own. Owning half a share gets you half the dividend per share.
Do fractional shares give voting rights?
Often not, or only for some markets. Check your broker's rules if voting matters to you.
Can I move fractional shares to another broker?
It depends on the broker. Some require you to sell the fraction and withdraw cash, which can create a taxable sale. See taxes on investing with a foreign broker.
Are fractional shares riskier than whole shares?
The risk per unit of money is the same, because you own the same company. A small amount limits how much you can lose in absolute terms, but it does not diversify.
Can I buy fractions of any stock on eToro?
eToro's help page does not list which assets allow fractional purchases, so check the product page of each asset on the platform.
What is the minimum amount on eToro?
According to eToro's help centre, the minimum trade size is $10 for stocks and ETFs. It rises to $200 to copy a Popular Investor and to $500 for Smart Portfolios (some require more). Amounts can change, so check them in the app.