If you’re looking to invest in the stock market without needing large sums of money, fractional shares can be a great option. This strategy lets you buy a portion of a stock, allowing you to diversify your portfolio with a lower financial commitment. Webull simplifies this process with an intuitive platform that supports fractional share investing. Here’s a step-by-step guide to getting started:
Step 1: Open a Webull Account
To begin, you’ll need to open a Webull account:
- Sign Up: Use your phone number, or sign in with your Facebook or Google account.
- Identity Verification: Upload a government-issued ID, such as a driver’s license.
- Enter Personal Information: Provide details like your name, address, Social Security number, employment information, and the type of account you want (cash or margin).
- Account Approval: Most accounts are approved within minutes. After approval, you can fund your account via ACH transfer from a linked bank account or a wire transfer.
Step 2: Log In and Search for Stocks
Once your account is open and funded, log in to Webull and search for the stock or ETF you want to buy. A green diamond icon will indicate if fractional shares are available for that stock.
Step 3: Click the “Trade” Tab
After selecting a stock or ETF, click the “Trade” button. Make sure to switch the order type to “market,” as fractional shares on Webull can only be traded as market orders during trading hours.
Step 4: Change Setting from “Shares” to “Dollars”
In the trade screen, change the setting from “Shares” to “Dollars” to buy a specific dollar amount of the stock rather than a whole share. Enter the amount you want to invest and review your order details.
Step 5: Submit Your Order
Once you’ve reviewed everything, click the “Buy” button to place your order. Note that Webull doesn’t allow modifications to an open order, so ensure all details are correct before submitting.
Account Types: Cash vs. Margin
- Cash Account: This allows you to buy stocks with the funds you deposit.
- Margin Account: Requires a balance of at least $2,000 and lets you borrow funds to increase your buying power. However, margin trading carries additional risk.
Webull Features
- Fractional Share Availability: Thousands of U.S. stocks and ETFs are available for fractional share trading. Look for the green diamond icon to confirm eligibility.
- Commission-Free: There are no commissions for online stock and ETF trades, and no account or inactivity fees.
- Educational Content: Webull provides basic educational materials and videos on using the platform and investing in general.
Considerations When Investing in Fractional Shares
- Selection of Stocks and ETFs: Webull offers a large selection of stocks and ETFs, but you’ll need to check each stock’s availability for fractional shares.
- Fees and Commissions: Webull has no fees for trading fractional shares, making it an affordable option for beginners.
- Account Minimums: You can start buying fractional shares with as little as $5.
Webull stands out as a low-cost platform ideal for beginners and more experienced investors looking to trade fractional shares. However, if you’re seeking more comprehensive financial services or long-term goal planning, you may want to explore other platforms.
