For instance, Berkshire Hathaway’s stock (NYSE: BRK. At the current price of $517,000, A) is so expensive that most investors, including myself, would not be able to purchase even a single share of stock!
Even Chipotle (NYSE: CMG) and a few other well-known stocks trade for more than $2,000 per share, so this is a significant outlier.
How can you diversify your portfolio by adding more expensive stocks without depleting all of your available funds?
Stock Slices, Charles Schwab’s interpretation of fractional stock shares, is their solution. But are they all they’re cracked up to be?.
The fact that Schwab Slices only allow you to purchase fractional shares of businesses from the S
On the other hand, eToro provides access to stock and ETF trading with 200 percent commissions, and you can purchase fractional shares of any stock or ETF on the platform.
It’s easy to understand why 30 million people have registered for eToro with a $10 minimum investment and a ton of other fantastic features for traders and investors.
eToro securities trading is offered by eToro USA Securities, Inc. (“the BD”), member of FINRA and SIPC. The company eToro USA LLC (also known as “the MSB”) offers cryptocurrency; it is not FDIC or SIPC insured. Investing is risky, and the information presented here is only meant to be educational. It is not a recommendation or a guarantee of future results. https://www. wallstreetzen. com is not an affiliate and might receive payment if you use specific goods or services provided by the BD, the MSB, or both. Your capital is at risk. Other fees apply. For more information, visit www. etoro. com/trading/fees.
Investing in the stock market can be a great way to grow your wealth over time. However, many people are hesitant to invest because they don’t have enough money to buy whole shares of stock. This is where fractional shares, also known as stock slices, come in.
What are Stock Slices?
Stock slices are small portions of a whole share of stock. They allow you to invest in companies that you might not otherwise be able to afford, such as Amazon Apple, or Tesla. This can be a great way to diversify your portfolio and gain exposure to a wider range of companies.
Schwab Stock Slices vs. Fidelity Stocks by the Slice
Both Schwab and Fidelity offer stock slices. However, there are some key differences between the two platforms.
- Schwab Stock Slices:
- You can buy fractional shares of any company in the S&P 500 Index.
- There is a minimum investment of $5 and a maximum investment of $50,000 per transaction.
- There are no commissions or fees to buy or sell stock slices.
- Fidelity Stocks by the Slice:
- You can buy fractional shares of any stock or ETF on the Fidelity platform.
- There is no minimum investment amount.
- There are no commissions or fees to buy or sell stock slices.
Are Stock Slices Worth Buying?
Whether or not stock slices are worth buying depends on your individual investment goals and risk tolerance. If you are looking for a simple and affordable way to diversify your portfolio, then stock slices may be a good option for you. However, if you are looking to make a significant investment in a particular company, then you may be better off buying whole shares of stock
Alternatives to Schwab and Fidelity Stock Slices
There are a number of other platforms that offer fractional shares including:
- M1 Finance: M1 Finance offers a unique investing approach called “pie investing”. This allows you to create a personalized investment portfolio by selecting various slices of the pie (aka different stocks, ETFs, or other investments).
- Public.com: Public.com is a social investing platform that allows you to follow other investors and see what they are buying and selling. You can also buy and sell fractional shares of stocks and ETFs on the platform.
- eToro: eToro is a global investment platform that offers a wide range of assets, including stocks, ETFs, commodities, and cryptocurrencies. You can also buy and sell fractional shares of stocks and ETFs on the platform.
Stock slices can be a great way to invest in the stock market, even if you don’t have a lot of money. However, it is important to do your research and choose a platform that is right for you.
FAQs
- What is the minimum investment amount for stock slices?
The minimum investment amount for stock slices varies depending on the platform. Schwab Stock Slices has a minimum investment of $5, while Fidelity Stocks by the Slice has no minimum investment amount.
- Are there any fees or commissions to buy or sell stock slices?
No, there are no fees or commissions to buy or sell stock slices on either Schwab or Fidelity.
- What are the risks of investing in stock slices?
The risks of investing in stock slices are the same as the risks of investing in whole shares of stock. The value of your investment can go up or down, and you could lose money.
- What are some alternatives to Schwab and Fidelity Stock Slices?
Some alternatives to Schwab and Fidelity Stock Slices include M1 Finance, Public.com, and eToro.
Additional Resources
Disclaimer
I am an AI chatbot and cannot provide financial advice. The information provided above is for general knowledge and informational purposes only, and does not constitute professional financial advice. It is essential to consult with a qualified financial advisor before making any investment decisions.
Can You Make Money on Fractional Shares?
Fractional shares are simply an additional option for stock market investment, so the answer is yes, it is possible to make money with them. However, if you don’t want to purchase an entire share, you can profit from the stock’s performance by investing a suitable amount.
Because of this, a lot of investors choose fractional shares when incorporating dollar-cost averaging into their portfolios. Regardless of the share price, you can accumulate more fractional shares during low prices and fewer shares during high prices by consistently investing a set amount of money.
Standard shares can also be used in this way, but there are restrictions based on your financial situation and the stocks you wish to purchase.
Fractional shares can be profitable in two ways, similar to purchasing standard shares:
- Capital Appreciation: The value of your fractional shares will rise if the stock price rises over time, allowing you to sell them for more money than you originally invested.
- Dividend Payments: As a distribution of profits, many businesses give dividends to their shareholders. You are still eligible to receive dividends as a fractional shareholder in accordance with your ownership.
Schwab Slices aren’t the only option for fractional share dividends. Brokers that provide fractional share dividends include eToro* and M1 Finance.
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
Are Stock Slices Worth It?
Since stock slices are essentially fractional shares that Schwab has rebranded to appeal to investors, I don’t think they’re worth it.
Therefore, I would advise using one of the platforms I discussed above, eToro, M1 Finance, or Public, if you want to invest in fractional shares.
More investable assets (especially public ones), cutting-edge investment technology, in-depth analysis, and more user-friendly platforms are all provided by them.