Is it Possible to Own Fractional Shares on Webull?

Can You Purchase Fractional Shares on Webull?

Webull is a widely used trading platform that doesn’t charge any commission. This affordable solution attracts many new traders who are keen to save money. But one important question pops up: can we buy fractional shares of stocks or ETFs on Webull?

In simple terms, fractional shares are parts of a stock that are less than a full share. This can be handy if you’re eyeing stocks such as Apple or Amazon, whose shares can cost a pretty penny. For instance, with fractional shares, it’s possible to invest just $10 into these big-name companies.

On Webull, you can indeed buy and sell fractional shares. The platform lets you purchase a minimum of $5 in fractional shares, without charging you any trade commissions. This means you can trade parts of individual stocks or ETFs cost-effectively.

Of course, while Webull does offer this feature, other platforms like Public.com or M1 Finance also support fractional shares, even for as little as $1.

Now, here’s the upside of fractional shares:
– You can buy shares of high-priced stocks.
– It lets you invest even if you only have a small balance in your brokerage account. So, if you have some spare money left after buying certain shares, you can use it to purchase fractional shares.
– It lowers the entry barrier for new investors, as you can start with any amount.

However, the downside can be that you may not receive dividends on the fractional shares, as some brokers keep them. Not all brokerages offer fractional shares either, but fortunately, Webull does.

So, how can you start trading fractional shares on Webull?

Before July 2021, Webull didn’t offer fractional share trading, which posed a challenge for those with limited funds. But now this feature is up and running. Here’s how it works: you search for the company or equity you want to invest in, then look for the green diamond icon indicating fractional share availability. You then place your order, switch to “Market” and specify the amount you wish to trade. You’ll need to spend at least $5 on 0.00001 shares or more to qualify for fractional shares.

Webull also doesn’t charge any commission for trading fractional shares. That’s another advantage, as you don’t have to include any fees when calculating your investment. Neither do you have to worry about inactivity or account management fees, but there may be some FINRA or SEC fees, so check the terms before you make a trade.

Finally, there are a couple of things to be aware of:
– Fractional shares can only be traded during normal hours, not during extended hours.
– You can’t currently transfer fractional shares from another platform to Webull. If you do have fractional shares elsewhere, check with your current broker how to transfer.

In a nutshell, Webull’s fractional shares feature allows you to invest piecemeal in big-ticket stocks without having to cough up a commission, making it an affordable way to build your portfolio.