Introduction
Fidelity is a well-known financial services company in the United States that offers a range of investment options to its clients. With the advent of new technologies, investing has become more accessible and affordable. One such innovation is fractional shares, which allow investors to purchase a portion of a company’s stock instead of the entire share. In this article, we will discuss whether Fidelity offers fractional shares and what benefits it brings to investors.
What are Fractional Shares?
Fractional shares are a new investment option that allows investors to buy a part of a share of a company. With fractional shares, investors can invest in high-priced companies without having to buy the full share. This is a great way for small investors to diversify their portfolio and invest in companies they might not otherwise be able to afford.
Does Fidelity Offer Fractional Shares?
Yes, Fidelity does offer fractional shares to its clients. Fidelity has introduced fractional shares to its brokerage clients, allowing them to buy and sell fractions of shares in real-time during market hours. Fidelity’s fractional share program is available for stocks and ETFs (exchange-traded funds).
How does Fidelity’s Fractional Share Program Work?
Fidelity’s fractional share program allows investors to buy and sell a portion of a share of a company. Fractional shares are purchased in real-time during market hours, so investors can take advantage of market fluctuations. Fidelity’s fractional share program is available for individual stocks and ETFs.
Benefits of Fidelity’s Fractional Share Program
There are several benefits to investing in fractional shares through Fidelity’s program:
Diversification
Fractional shares allow investors to diversify their portfolio by investing in multiple companies. This is especially beneficial for small investors who might not have the resources to buy a full share of a high-priced stock.
Affordability
Fractional shares make investing more affordable for small investors. Instead of buying a full share, investors can buy a portion of a share at a lower cost.
Liquidity
Fidelity’s fractional share program allows investors to buy and sell fractions of shares in real-time during market hours. This provides investors with greater liquidity and flexibility in managing their investments.
How to Invest in Fractional Shares through Fidelity
Investing in fractional shares through Fidelity is easy. Here’s how to get started:
Step 1: Open a Fidelity Account
To invest in fractional shares through Fidelity, you need to open a brokerage account. You can do this online or by visiting a Fidelity branch.
Step 2: Fund Your Account
Once you have opened a Fidelity account, you need to fund it. You can do this by transferring funds from your bank account or by depositing a check.
Step 3: Search for Fractional Shares
Once your account is funded, you can search for fractional shares by using Fidelity’s online trading platform. You can search for individual stocks or ETFs that offer fractional shares.
Step 4: Place Your Order
Once you have found the fractional shares you want to invest in, you can place your order through Fidelity’s online trading platform. You can buy or sell fractional shares in real-time during market hours.
Conclusion
Fractional shares are a great way for small investors to diversify their portfolio and invest in high-priced companies. Fidelity offers fractional shares for individual stocks and ETFs, making it easy for investors to take advantage of this new investment option. Fidelity’s fractional share program offers several benefits, including diversification, affordability, and liquidity. Investing in fractional shares through Fidelity is easy and can be done through their online trading platform.
