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

Robinhood allows you to purchase fractional shares — meaning you can own a piece of a stock rather than a whole share — through its standard investing account. You can buy fractional shares of stocks, ETFs, and some other securities with any dollar amount, starting as low as $1. This feature is built into the platform; you do not need to enable it or use a separate account type.

When you place an order on Robinhood, the app automatically calculates how many fractional shares you can buy with the money you have. If you enter $50 and a stock costs $150 per share, Robinhood will buy you 0.33 shares. You own that fraction outright — it appears in your portfolio and you receive dividends on it, though dividends on fractional shares are also fractional.

Key Takeaways

  • Robinhood buys fractional shares automatically when you place any stock or ETF order, with no minimum purchase amount beyond $1.
  • Fractional shares are settled and owned by you immediately, and you receive dividends proportional to your ownership stake.
  • You can sell fractional shares at any time during market hours, and Robinhood will convert them back to cash at the current price.
  • Fractional shares are not available for options, crypto, or certain other asset types on Robinhood.
  • If you transfer your Robinhood account to another brokerage, fractional shares may be rounded down or liquidated depending on the receiving firm's rules.

How fractional shares work when you buy

When you enter a dollar amount to invest — say $25 — Robinhood uses that exact amount to purchase whatever fraction of a share it buys. The order executes during market hours (9:30 a.m. to 4 p.m. Eastern time on weekdays) at the market price at that moment. You own the fractional share immediately after the order fills.

Robinhood does not round your purchase up or down. If you buy $25 worth of a $150 stock, you own exactly 0.1667 shares. That fraction appears in your holdings with the same detail as a whole share would. You can see the exact number of shares you own by opening the stock's detail page in the app.

Selling fractional shares and converting back to cash

You can sell fractional shares the same way you sell whole shares: by opening the stock, tapping "Sell," and entering the number of shares or the dollar amount you want to sell. Robinhood will sell your fractional shares at the market price during trading hours. The cash lands in your account immediately after the order settles, usually within one business day.

There is no penalty or fee for selling fractional shares. The only cost is the bid-ask spread — the tiny difference between what buyers will pay and what sellers are asking — which applies to all stock sales, not just fractional ones.

Dividends on fractional shares

If a company pays a dividend and you own fractional shares, you receive a dividend payment proportional to your ownership. If you own 0.5 shares of a stock that pays a $2 annual dividend per share, you receive $1. Robinhood deposits dividend payments into your cash balance, where you can use them to buy more shares or withdraw them.

Dividend payments on fractional shares are often very small — sometimes a few cents — but they are real money that appears in your account. You can see the exact amount in your transaction history.

What you cannot buy as fractional shares on Robinhood

Fractional shares are available for stocks and most ETFs, but not for options, cryptocurrencies, or bonds. If you want to trade options or crypto on Robinhood, you must buy whole units or the minimum contract size. Some international stocks and penny stocks may also have restrictions on fractional purchases, though most U.S.-listed stocks and major ETFs support them.

If you are unsure whether a specific security supports fractional shares, try entering a small dollar amount in the order screen. Robinhood will show you how many fractional shares you can buy before you confirm the order.

What happens to fractional shares if you transfer accounts

If you move your Robinhood account to another brokerage, your fractional shares may be handled differently depending on the receiving firm's rules. Some brokerages accept fractional shares and will transfer them as-is. Others round fractional shares down to the nearest whole share and liquidate the remainder, converting it to cash. A few brokerages liquidate all fractional shares and transfer only the cash value.

Before you transfer, contact the receiving brokerage to ask how they handle fractional shares. If you have significant fractional positions, you may want to sell them on Robinhood first and reinvest the cash after the transfer completes, so you have full control over what happens to your money.

Fractional shares and account restrictions

Robinhood treats fractional shares the same as whole shares under account rules. If you have a cash account, your fractional share purchases settle in one business day before you can sell them (this is the standard settlement period for all stock trades). If you have an Instant or Gold account with margin, you can sell fractional shares immediately after buying them, though margin rules still apply.

Fractional shares count toward your portfolio value, which matters if you are tracking your net worth or calculating your asset allocation. They also count as holdings for the purpose of Robinhood's account features, such as watchlists and alerts.

Frequently Asked Questions

Can I buy fractional shares of expensive stocks like Berkshire Hathaway?

Yes. Fractional shares make expensive stocks accessible. If Berkshire Hathaway Class A shares cost $500,000 each, you can still buy a fraction of one share with $100 or $1,000. Robinhood will calculate the exact fraction you own based on the dollar amount you invest.

Do fractional shares have voting rights?

No. Fractional shares do not come with voting rights at shareholder meetings. Only whole shares typically carry voting rights, though this depends on the company's bylaws. Robinhood does not offer a way to vote fractional shares.

What is the minimum amount I can invest in fractional shares?

Robinhood's minimum is $1 per order. You can buy fractional shares with any amount from $1 up to your account balance. There is no maximum, and no fees for fractional purchases.

If I own fractional shares and the stock splits, what happens?

Your fractional shares split along with whole shares. If you own 0.5 shares and the stock splits 2-for-1, you will own 1 share after the split. The split adjusts your share count and price per share, but your total dollar value stays the same (minus any market movement).

Can I set up automatic investments in fractional shares?

Yes. Robinhood's recurring investments feature works with fractional shares. You can set up automatic weekly or monthly purchases of any stock or ETF, and Robinhood will buy fractional shares with the dollar amount you choose each time.