Fidelity offers fractional shares on most stocks and exchange-traded funds (ETFs), letting you buy a portion of a share instead of a whole one

Yes, Fidelity allows fractional share purchases. You can buy as little as $1 worth of most stocks and ETFs through Fidelity's standard brokerage accounts. This means you are not locked into buying one full share at its current price — if a stock costs $500 per share and you have $100 to invest, you can own 0.2 shares of that stock instead.

Fractional shares are available on stocks listed on major U.S. exchanges (NYSE, NASDAQ) and most ETFs. Some mutual funds and certain other securities do not support fractional purchases. Fidelity does not charge extra fees for fractional share trades — you pay the same commission structure as whole share trades, which is typically zero commission for stocks and ETFs.

Key Takeaways

  • Fidelity lets you buy fractional shares of stocks and most ETFs with as little as $1, with no extra fees.
  • Fractional shares work in most account types: taxable brokerage accounts, IRAs, 401(k)s, and custodial accounts for minors.
  • You can sell fractional shares anytime during market hours, and the sale price is based on the current market price of the full share.
  • Dividend payments on fractional shares are calculated proportionally — if you own 0.5 shares and the dividend is $2 per share, you receive $1.

Which account types support fractional shares

Fractional shares are available across nearly all Fidelity account types. This includes individual taxable brokerage accounts, IRAs (Traditional, Roth, SEP, and SIMPLE), 401(k)s, Fidelity HSAs, and custodial accounts (UGMA/UTMA accounts for minors). The rules are the same regardless of account type: you can buy fractional shares of may be able to access stocks and ETFs with no minimum purchase amount beyond $1.

If you hold fractional shares in a retirement account like a Traditional or Roth IRA, the same tax rules apply as they do to whole shares. Fractional shares in a taxable account are subject to capital gains tax when you sell them. Dividend income from fractional shares is taxable in the year it is paid, just as it would be for whole shares.

How to buy fractional shares at Fidelity

To purchase fractional shares, log into your Fidelity account and search for the stock or ETF you want to buy. On the order entry screen, you will see an option to enter a dollar amount instead of a share quantity. Enter the dollar amount you want to invest — say $50 or $100 — and Fidelity will calculate how many fractional shares that buys at the current market price.

Place the order during market hours (9:30 a.m. to 4:00 p.m. Eastern Time on weekdays when U.S. markets are open). Your order will execute at the next available price. If you place an order after market close or on a weekend, it will execute at the market open the next trading day. There is no waiting period or special approval needed — fractional share orders process the same way as whole share orders.

Selling fractional shares and understanding pricing

You can sell fractional shares anytime during market hours. The sale price is based on the current market price of the full share. If you own 0.75 shares of a stock trading at $100 per share, you receive $75 when you sell (minus any applicable commissions, though Fidelity typically charges zero commission on stock sales).

Fractional shares do not trade on an exchange themselves — they are a Fidelity feature that lets you own a portion of a share. When you sell, Fidelity matches your fractional shares with buyers and executes the sale at the market price. The process is transparent: you see the price per share and the total proceeds before you confirm the sale.

Dividends and corporate actions on fractional shares

When a company pays a dividend, Fidelity calculates your payment based on the exact number of shares you own, including fractional amounts. If you own 2.5 shares of a stock with a $4 annual dividend per share, you receive $10 in dividends. Dividend payments appear in your account as cash, which you can reinvest or leave as cash.

If a stock splits, merges, or undergoes another corporate action, your fractional shares are adjusted proportionally. A 2-for-1 stock split doubles your fractional share count. If you own 0.5 shares before the split, you own 1 share after. Fidelity handles these adjustments automatically — you do not need to do anything.

Restrictions and securities that do not support fractional shares

Most U.S.-listed stocks and ETFs support fractional purchases, but some do not. Penny stocks (stocks trading below $5 per share on some brokers, though Fidelity's definition may vary), certain international stocks, and some mutual funds cannot be bought as fractional shares. Bonds and options also do not support fractional purchases.

If you try to buy a fractional share of an ineligible security, Fidelity will show an error message when you attempt to enter a dollar amount. You will need to buy whole shares instead, or choose a different security. Check the order entry screen for your specific stock or ETF to confirm whether fractional shares are available before you place an order.

Frequently Asked Questions

Can I set up automatic investments in fractional shares?

Yes. Fidelity's automatic investment plans (sometimes called dollar-based investing) let you invest a fixed dollar amount on a schedule — weekly, bi-weekly, or monthly — into fractional shares of stocks or ETFs. Set this up in your account settings under "Automatic Investments" or "Dollar-Based Plans." The system buys fractional shares at the market price on your chosen date.

What happens to my fractional shares if I transfer my account to another broker?

When you transfer an account from Fidelity to another brokerage, fractional shares are typically converted to whole shares, with any remaining fractional amount paid to you in cash. The exact process depends on the receiving broker's policies. Contact Fidelity before initiating a transfer if you want to understand how your specific fractional holdings will be handled.

Do fractional shares count toward Fidelity's account minimums?

No. Some Fidelity account types have minimum balance requirements (for example, some managed accounts or advisory services). Fractional shares count toward your total account value for these purposes. However, there is no separate minimum to hold fractional shares — you can own $1 worth of fractional shares in a standard brokerage account with no minimum balance requirement.

Can I buy fractional shares through Fidelity's mobile app?

Yes. The Fidelity mobile app supports fractional share purchases. Search for the stock or ETF, tap "Trade," and enter a dollar amount instead of a share quantity. The process is identical to the web platform. Fractional share orders placed through the app execute during the same market hours as web orders.