How to Buy Fractional Shares on Fidelity Investments

Investing in the stock market has become more accessible with the introduction of fractional shares. Fractional shares allow investors to buy a portion of a stock rather than a full share, making it easier to invest in high-priced stocks with a smaller budget. Fidelity Investments is one of the leading brokerage firms offering fractional share investing through its “Stocks by the Slice” program. This guide will walk you through the process of buying fractional shares on Fidelity Investments while ensuring you follow all on-page SEO best practices.

What Are Fractional Shares?

Fractional shares represent a part of a whole share of a stock. Instead of purchasing a full share, investors can buy a portion of it based on the amount of money they want to invest. This feature is particularly useful for those looking to diversify their portfolio without needing a large sum of money.

Benefits of Buying Fractional Shares

• Affordability: Invest in expensive stocks like Amazon or Tesla with a smaller budget.
• Diversification: Spread your investment across multiple stocks without needing a significant amount of capital.
• Dollar-Cost Averaging: Invest a fixed amount periodically, reducing the impact of market volatility.
• Accessibility: Ideal for beginners who want to enter the stock market gradually.

Step-by-Step Guide to Buying Fractional Shares on Fidelity Investments

Step 1: Open a Fidelity Brokerage Account

Before you can buy fractional shares, you need to have a brokerage account with Fidelity. If you don’t have one, follow these steps:

1. Visit the Fidelity Investments website.
2. Click on “Open an Account.”
3. Select the type of brokerage account you want (e.g., individual, joint, or retirement account).
4. Fill in the required personal and financial information.
5. Submit your application and wait for approval.

Step 2: Fund Your Fidelity Account

Once your account is approved, you need to deposit funds before purchasing fractional shares. To do this:

1. Log in to your Fidelity account.
2. Navigate to the “Transfer Funds” section.
3. Link your bank account and initiate a transfer.
4. Wait for the funds to be credited (usually within 1-3 business days).

Step 3: Search for the Stock You Want to Buy

After funding your account, follow these steps to find the stock you want to purchase fractionally:

1. Use the search bar at the top of the Fidelity dashboard.
2. Enter the ticker symbol or name of the company.
3. Click on the stock name to view its details.

Step 4: Select the Fractional Share Purchase Option

Fidelity offers fractional shares through “Stocks by the Slice.” To proceed:

1. Click on “Trade” or “Buy.”
2. Choose the option to buy in dollar amounts rather than full shares.
3. Enter the amount you wish to invest (minimum $1).

Step 5: Review and Confirm Your Order

Before finalizing your purchase:

1. Double-check the details of your order.
2. Confirm that you are buying fractional shares at the current market price.
3. Click “Place Order” to complete the transaction.

Step 6: Monitor Your Investments

After purchasing fractional shares, it’s essential to monitor your investments:

• Use Fidelity’s portfolio tracking tools to check your holdings.
• Set up alerts for stock price changes.
• Reinvest dividends automatically if the stock offers them.

Frequently Asked Questions (FAQs)

1. Does Fidelity charge fees for buying fractional shares?

No, Fidelity does not charge commission fees for purchasing fractional shares.

2. Can I sell fractional shares on Fidelity?

Yes, you can sell your fractional shares at any time through the same “Stocks by the Slice” program.

3. Are fractional shares eligible for dividends?

Yes, if the stock pays dividends, you will receive a proportional amount based on your fractional ownership.

4. Can I transfer fractional shares to another brokerage?

No, fractional shares cannot be transferred. You would need to sell them first and then transfer the cash proceeds.

Conclusion

Buying fractional shares on Fidelity Investments is a simple and cost-effective way to start investing in the stock market. By following this step-by-step guide, you can make informed investment decisions and build a diversified portfolio with minimal capital. Take advantage of Fidelity’s “Stocks by the Slice” feature and start your investing journey today!

By implementing these steps, you can successfully buy fractional shares while optimizing your content for search engines. Happy investing!