Yes, Robinhood lets you buy fractional shares of most stocks and ETFs

Robinhood allows you to purchase fractional shares — pieces of a single share — rather than having to buy whole shares only. This means you can invest a specific dollar amount, like $50 or $100, in a stock that costs $300 per share, and you will own a fraction of that share instead of being locked out entirely.

Fractional shares are available for most stocks and exchange-traded funds (ETFs) on the platform. Some stocks, particularly penny stocks or very new listings, may not support fractional purchases. When you search for a stock on Robinhood, the app will show you whether fractional shares are available for that particular security.

You do not need a minimum account balance or special permission to buy fractional shares. If you have a funded Robinhood account with at least the dollar amount you want to invest, you can place a fractional share order the same way you would place any other trade.

Key Takeaways

  • Fractional shares let you invest a set dollar amount in any stock, rather than buying whole shares at the full price.
  • Most stocks and ETFs on Robinhood support fractional purchases, but some newer or penny stocks do not.
  • You place a fractional share order by entering a dollar amount instead of a share quantity in the buy screen.
  • Fractional shares trade at market price during regular market hours and are settled the next business day like whole shares.

How to place a fractional share order on Robinhood

Open the Robinhood app and search for the stock or ETF you want to buy. Tap the stock name to open its detail page, then tap the "Buy" button. On the order screen, you will see two input options: one for "Shares" and one for "Dollars." Tap the "Dollars" field and enter the amount you want to invest — for example, $75 or $150.

Review the order summary to confirm the number of fractional shares you will receive at the current market price. The app will show you something like "0.25 shares" or "1.33 shares" depending on the stock price and your dollar amount. Tap "Review Order," then "Submit Order" to complete the purchase.

Your fractional share order will execute during regular market hours (9:30 a.m. to 4 p.m. Eastern time on weekdays). If you place the order after market close, it will execute the next trading day at the opening price or the next available market price.

What happens to fractional shares when you sell or transfer them

You can sell fractional shares anytime during market hours using the same process as selling whole shares. Open the stock detail page, tap "Sell," enter the dollar amount or number of shares you want to sell, and submit the order. Fractional shares sell at the current market price just like whole shares do.

If you transfer your Robinhood account to another brokerage, fractional shares are handled differently depending on where you move them. Some brokerages will round fractional shares up to the nearest whole share before the transfer, while others will liquidate (sell) the fractional portion and transfer the cash. Contact the receiving brokerage before you initiate a transfer to understand how they handle fractional shares.

If your Robinhood account is closed, any fractional shares you own will be liquidated automatically and the proceeds will be sent to you as cash.

Dividends and voting rights with fractional shares

When you own fractional shares, you receive dividends on a pro-rata basis — meaning you get a proportional share of the dividend payment. If a stock pays a $1 dividend per share and you own 0.5 shares, you will receive $0.50 in dividends. Dividend payments are deposited into your Robinhood account just like dividends on whole shares.

You do not have voting rights on fractional shares. Voting rights are tied to whole shares only. If you own 0.75 shares of a company, you cannot vote on shareholder proposals or board elections, even though you own a fractional piece of the company.

Fractional shares versus whole shares: what you should know

The main difference between fractional and whole shares is flexibility. Fractional shares let you invest exactly the amount you want without worrying about the per-share price. Whole shares require you to buy in increments of one share at a time, which can mean spending more than you planned if the stock price is high.

Both fractional and whole shares are subject to the same market risks and price movements. A fractional share of Apple will gain or lose value at the same rate as a whole share. The only operational differences are that fractional shares do not carry voting rights and may be handled differently if you transfer accounts.

Fractional shares also make it easier to build a diversified portfolio with a small amount of money. Instead of saving up $500 to buy one share of an expensive stock, you can invest $50 in that stock and $50 each in four other stocks, spreading your risk across multiple companies.

Fractional shares and Robinhood's account protection

Fractional shares held in a Robinhood account are protected by the Securities Investor Protection Corporation (SIPC) up to $500,000 per account, just like whole shares. This protection covers the value of your fractional shares if Robinhood becomes insolvent or fails. Cash held in your account is also covered separately up to $250,000.

This protection does not cover losses from market price changes — only losses from brokerage failure. If you buy fractional shares and the stock price drops, SIPC protection does not reimburse you for the decline in value.

Frequently Asked Questions

Can I set up automatic investments in fractional shares?

Robinhood does not offer automatic recurring investments or dividend reinvestment plans (DRIPs) for fractional shares. You must manually place each fractional share order. Some users set calendar reminders to buy fractional shares on a regular schedule, but the purchase itself is not automated through the app.

Do fractional shares cost more in commissions or fees?

No. Robinhood charges no commission on fractional share trades, just as it charges no commission on whole share trades. You pay only the bid-ask spread (the difference between the buy and sell price), which applies equally to fractional and whole share orders.

What if I want to buy a fractional share but the stock is halted or not trading?

If a stock is halted or the market is closed, you cannot place a fractional share order. Your order will be queued and will execute when the market reopens and the stock resumes trading. You can cancel a pending order at any time before it executes.

Can I use margin to buy fractional shares?

Yes, if you have a Robinhood Gold account (which provides margin borrowing), you can use margin to purchase fractional shares. The same margin rules apply: you can borrow up to 2 times your account value for stock purchases, and you will pay interest on the borrowed amount.