Yes, E*TRADE lets you buy fractional shares through their fractional share program

E*TRADE offers fractional shares on most stocks and exchange-traded funds (ETFs) through a feature called fractional share trading. This means you can buy a portion of a share instead of having to purchase a whole share. For example, if a stock costs $500 per share and you have $100 to invest, you can buy 0.2 shares instead of waiting until you have enough for a full share.

Fractional shares trade during regular market hours — 9:30 a.m. to 4 p.m. Eastern Time on weekdays when the market is open. You place the order the same way you would for whole shares: through the E*TRADE website, mobile app, or by calling a broker. The order executes at the market price during those hours.

Not every security on E*TRADE supports fractional shares. Most large-cap stocks and popular ETFs do, but some penny stocks, thinly traded securities, and certain mutual funds do not. When you search for a stock to buy, E*TRADE will show you whether fractional shares are available for that particular security.

Key Takeaways

  • E*TRADE allows fractional share purchases on most stocks and ETFs, letting you invest any dollar amount instead of waiting for enough cash to buy a whole share.
  • Fractional shares trade only during regular market hours (9:30 a.m. to 4 p.m. Eastern Time on weekdays), not during pre-market or after-hours sessions.
  • You can buy fractional shares through the E*TRADE website, mobile app, or by phone using the same order process as whole shares.
  • Fractional shares are subject to the same commissions and fees as whole share trades, and you own the fractional amount outright in your account.

How to place a fractional share order on E*TRADE

To buy a fractional share, log into your E*TRADE account and navigate to the trade ticket. Enter the stock symbol or ETF ticker. In the quantity field, you can type a decimal amount — for example, 0.5 for half a share, or 2.75 for two and three-quarter shares. You can also enter a dollar amount if E*TRADE's interface offers that option (some accounts allow you to specify "invest $50" rather than a share quantity).

Review the order details: the security name, the quantity or dollar amount, the current market price, and any applicable fees. E*TRADE will show you an estimated cost before you submit. Once you confirm, the order goes to the market. During regular trading hours, fractional share orders typically fill within seconds to minutes at the market price at the time of execution.

After the order fills, the fractional shares appear in your account holdings. You can see them listed with the decimal quantity — for instance, "AAPL: 2.35 shares" — and they are treated as your property. You can sell them at any time during market hours, and they count toward your portfolio value and any dividend payments.

Costs and fees for fractional share trading

E*TRADE charges no commission on fractional share trades for stocks and ETFs, the same as for whole share trades. This applies whether you are buying or selling. However, you may encounter other costs depending on your account type and the specific security.

Some ETFs charge an expense ratio — an annual fee deducted from the fund's value — but this is the same whether you own fractional or whole shares. Mutual funds typically do not support fractional shares on E*TRADE, so this is less of a concern for fractional trading.

If you hold fractional shares and the company pays a dividend, you receive a proportional dividend payment. For example, if you own 0.5 shares of a stock that pays a $2 dividend per share, you receive $1. Dividend payments are deposited into your account like any other cash deposit.

Fractional shares and account restrictions

Fractional shares are available in most E*TRADE account types, including individual brokerage accounts, IRAs, and some retirement accounts. However, certain account types — such as some custodial accounts or accounts with specific restrictions — may have limitations. Check your account settings or contact E*TRADE to confirm whether fractional shares are available for your particular account.

Margin accounts (accounts where you can borrow money to invest) can use fractional shares, but the fractional shares themselves cannot be used as collateral for margin borrowing in the same way whole shares can. If you plan to use margin, confirm the details with E*TRADE before placing large fractional share orders.

When fractional shares are not available

E*TRADE does not offer fractional shares for penny stocks (stocks trading below $5 per share in many cases), certain over-the-counter (OTC) securities, or some thinly traded stocks. Additionally, some international stocks and certain bond products do not support fractional trading.

If you search for a security and the fractional share option does not appear, you will need to buy whole shares only. In that case, you can still place a limit order to buy at a specific price, or you can wait until you have enough cash to purchase a full share at market price.

Selling fractional shares

Selling fractional shares works the same way as selling whole shares. Log into your account, navigate to the position you want to sell, and enter the fractional quantity you wish to sell. You can sell any portion of your fractional holding — for example, if you own 3.75 shares, you could sell 1.25 shares and keep 2.5.

Fractional share sell orders execute during regular market hours at the market price. There is no commission, and the proceeds are deposited into your cash balance. You can then use that cash to buy other securities or withdraw it from your account.

Frequently Asked Questions

Do I pay more in fees to buy fractional shares instead of whole shares?

No. E*TRADE charges no commission on fractional share trades, the same as whole shares. You pay only the market price for the fractional amount you purchase. Some ETFs have an expense ratio, but that applies to fractional and whole shares equally.

Can I set a limit order for fractional shares?

Yes, you can place limit orders for fractional shares on E*TRADE. A limit order lets you specify the maximum price you will pay (for a buy order) or the minimum price you will accept (for a sell order). The order will fill only if the market price reaches your limit during regular trading hours.

What happens to fractional shares if a company splits its stock?

If a company announces a stock split, your fractional shares are adjusted accordingly. For example, in a 2-for-1 split, 0.5 shares becomes 1 share. E*TRADE handles this automatically, and you do not need to take any action.

Can I buy fractional shares during pre-market or after-hours trading?

No. Fractional shares trade only during regular market hours (9:30 a.m. to 4 p.m. Eastern Time). Pre-market and after-hours trading are available for whole shares only on E*TRADE.

Do fractional shares count toward my portfolio for rebalancing?

Yes. Fractional shares are included in your total portfolio value and count toward any rebalancing targets or asset allocation percentages you set. E*TRADE's portfolio tools treat fractional shares the same as whole shares for tracking and analysis purposes.