How to Buy Fractional Shares on Fidelity

Investing in Fractional Shares

Investing in the stock market has for a long time meant that one had to buy whole shares of a company’s stock. But thanks to fractional share investing, it is now possible to own a part of a share, making investments more accessible and affordable than before. Fidelity is one of the biggest brokerage firms, and it gives you a chance to buy fractional shares. This means you can diversify your portfolio and start investing in expensive stocks without spending a lot of money. In this article, I will show you how to buy fractional shares on Fidelity and the advantages that come with it.

What are Fractional Shares?

A fractional share is a unit of stock that represents a portion of a full share. This means that instead of having to buy an entire share, you can purchase a fraction of a share, for example, 0.5 or 0.25 share. This makes it easier to invest in expensive stocks that would otherwise be unaffordable. It is particularly useful when you want to diversify your investment portfolio without having to invest a large amount of money.

Why Buy Fractional Shares on Fidelity?

Fidelity is one of the biggest brokerages in the United States and is well-known in the financial industry. Here are a few reasons why you might want to consider buying fractional shares on Fidelity instead of other platforms:

• Availability of Many Stocks: At Fidelity, you will be able afforded a choice of many domestic and international companies’ stocks. This gives you an opportunity to invest across different sectors.
• Commission Charges: Fidelity does not charge fees on the purchase or sale of fractional shares. That means you can trade without worrying about other costs.
• Automated Dividend Reinvestment: Fidelity has made it very easy to have your dividends automatically reinvested into purchasing fractional shares, which can accelerate your investment portfolio growth.
• Variety of Investment Vehicles: You can invest any amount you want, whether it’s $10 or $1,000, in order to meet your financial objectives with no discomfort.

How to Buy Fractional Shares on Fidelity

Buying fractional shares on Fidelity is easy. Let me step by step guide you through the process below:

Step 1: Open a Fidelity Account

If you haven’t opened a Fidelity account, then first you need to go to their site and look for the “Open an Account” button. Then fill in the information required to create the account.

Step 2: Fund Your Account

Next, you’ll want to fund that account. You can make a transfer from your bank account or even deposit a check. Fidelity has many ways to accomplish this without a hitch.

Step 3: Search and Choose Your Security

Before making the purchase, it is advisable to check on the company you are interested in investing in. Fidelity provides you with a number of tools that can help you with your search. Check out the company’s financial statements, potential, and trends in the market.

Step 4: Determine the Investment Quantity

Consider how much money you want to invest in your chosen stock. Fidelity allows investors to trade in fractional shares as low as $1, so you can manage your investments according to your financial situation.

Step 5: Execute the Trade

Once you have your stock picked and investment amount decided, it’s time to place your order. To place your order, sign in to your Fidelity account and navigate to the trading page, enter the stock ticker and the number of shares you wish to purchase. The platform will round up your fractional shares based on the current market price.

Step 6: Review and Confirm Your Trade

It is always important to review your work before submitting it for finalization. Take a moment to check everything through. Check the stock symbol and the investment amount. If all is well, there is a button called “Confirm” which when clicked will finish the purchase.

The Advantages of Buying Fractional Shares on Fidelity

Investing in fractional shares via Fidelity is not just a new trend but also useful. Here are some benefits for you to consider:

• Availability: Fractional shares help you start investing with little money down. It is possible to start with a small amount and increase your investments over time.
• Diversification: Fractional shares enable you to invest in different sectors of the market and reduce the risk of consolidation in specific areas of your portfolio.
• Stability: With no commission fees, Fidelity offers a affordable way of making regular investments for the future.
• Versatility: Invest the way you want to achieve your investment goals and comfort level without having to buy full shares.

Summary

Investing in fractional shares through Fidelity is not only a way to invest easily, but also cheaply. This is because they have a wide range of stocks, no commission charges and the ability to reinvest dividends, which can help your investment grow steadily. As outlined in the article, you will be in a position to take full advantage of fractional investing with Fidelity.