So, can you buy fractional shares on TD Ameritrade? If you’re new to investing, you might be wondering what fractional shares are and how they work. Fractional shares are simply pieces of a whole share, allowing you to invest in companies without having to buy a full share. This makes investing more accessible to those who may not have enough money to buy an entire share.
TD Ameritrade is one of the top online brokerages, but can you buy fractional shares on TD Ameritrade? The answer is yes, and in this blog post, we’ll show you how.
Fractional shares, also known as fractional stock, are simply pieces of a whole share. For example, if you wanted to invest in Amazon, you would typically have to buy a whole share, which can be expensive. With fractional shares, you can invest in Amazon for as little as $1.
This means that you can own a piece of the company without having to invest a large sum of money. Fractional shares are also beneficial for investors who want to diversify their portfolio, but may not have enough money to do so by purchasing whole shares.
Yes, TD Ameritrade does allow investors to buy fractional shares. In fact, TD Ameritrade was one of the first online brokerages to offer fractional shares, which they call “partial shares.” This means that you can buy as little as 0.0001 of a share, making investing more accessible to everyone.
How to Buy Fractional Shares on TD Ameritrade
Buying fractional shares on TD Ameritrade is easy. Here are the steps:
- Open a TD Ameritrade Account
The first step is to open a TD Ameritrade account. You can do this by visiting their website and following the prompts to create an account.
- Fund Your Account
Once you have an account, you’ll need to fund it. TD Ameritrade requires a minimum of $0 to open an account, but you’ll need to have enough funds to purchase the fractional shares you’re interested in.
- Search for the Stock You Want to Buy
Next, search for the stock you want to buy. You can do this by entering the company name or ticker symbol in the search bar on the TD Ameritrade website.
- Place Your Order
Once you’ve found the stock you want to buy, place your order. You’ll need to enter the number of shares you want to buy, and if you’re buying fractional shares, you’ll need to enter the decimal amount (e.g. 0.5 shares).
- Review and Confirm Your Order
Before your order is complete, you’ll need to review and confirm the details. This includes the number of shares you’re buying and the price per share.
- Wait for Your Order to Be Filled
Once you’ve confirmed your order, you’ll need to wait for it to be filled. This can take a few minutes or longer, depending on market conditions.
There are several benefits to buying fractional shares on TD Ameritrade, including:
- Lower Investment Minimums
Fractional shares allow you to invest in companies with lower investment minimums, making it easier to diversify your portfolio.
- More Accessible
Fractional shares are more accessible to investors who may not have enough money to buy a full share.
- Diversification
Fractional shares allow you to diversify your portfolio without having to invest large sums of money.
- No Commissions
TD Ameritrade does not charge commissions on fractional share trades, making it a cost-effective way to invest.
Fractional shares are a great way to start your investment journey. We wish you the best of luck with your investment…
