When you want to invest in a company with a world-famous name, the biggest problem is to find enough funds. In many cases, it may turn out that you cannot afford a single share. But, now, due to fractional trading, you can invest any sum you want. This option is available on many online broker platforms, including Webull.
So, let us start by determining the term “fractional share”. As you have probably guessed, it states for a partial share of a stock belonging to some company. It is a relatively new opportunity as, in the past, brokerage firms allowed their clients to purchase whole shares only.
Why should you try this option?
- You can make an investment in a company with a huge potential even with a limited budget and receive due dividends in the future.
- You can decide which exact sum you want to invest.
- It is an easy method to diversify your portfolio (and, consequently, the risks) without investing huge sums.
Still, we must also mention certain difficulties. First, the range of available shares is limited. Secondly, you may face problems with liquidity when you decide to sell such assets. You will have to find a buyer, who will need the same fraction.
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Now, let us return to Webull fractional shares. The best news is that there are no commissions or other fees on such trades. You can make such deals via their mobile platform within regular trading hours. Only market orders are accepted. You will also receive dividends in accordance with the size of your share. To check whether a product chosen is available for fractional trading, just open its detail page.
In sum, fractional shares are a good choice for those who are interested in stocks but are not ready to invest big money in them.