Can I buy fractional shares at Ally Invest as of December 2024?
No, fractional shares are not available at Ally Invest.
Check out our best brokers for micro investing list.
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Ally Invest is a US stockbroker, regulated by top-tier authorities the SEC and FINRA. The company is listed on the New York Stock Exchange and has a banking background.
About diversification and fractional shares
You have probably heard the advice that it's a good idea to diversify your stock investments if you want to lower risk. Sounds easy, until you actually go on a trading platform and see the price stickers. How are you supposed to load up on a dozen different stocks when they each cost $200-300 but you have only $100 to invest?
Here's where fractional shares come in. Brokers where you can trade fractional shares allow you to buy just a tiny fraction of an otherwise expensive stock - sometimes as small as $1. So for your $100, you can in fact buy dozens of shares. The price of these fractional shares moves up or down just as that of the 'full' share.
Remember that fractional shares are a great way to diversify your stock portfolio, but they're only a possible first step to a fully diversified portfolio. For that, you'll need to also look at other asset types, such as bonds, commodities or ETFs. Keep in mind also that not all stockbrokers offer fractional shares yet.
To learn more, read our comprehensive guide to portfolio diversification, including pros, cons and the most popular strategies.
Is it worth buying fractional shares at Ally Invest?
Fractional shares are not available at Ally Invest
💰 Ally Invest withdrawal fee | $0 |
💰 Ally Invest minimum deposit | $0 |
💰 Ally Invest inactivity fee | No |
📃 Ally Invest deposit methods | Bank transfer |
🗺️ Country of regulation | USA |
🎮 Ally Invest demo account | No |
Data updated on December 11, 2024
To learn more, read our comprehensive guide to portfolio diversification, including pros, cons and the most popular strategies.
FAQ
Are fractional shares a good investment?
Individual shares are considered to be risky investments. However with a diversified portfolio you can reduce your risk. With fractional shares it is easier to build a diversified portfolio.
Are fractional shares good for beginners?
Fractional shares are great for beginners, since you can invest only a fraction of the money you would have to invest in a full share.
How does diversification protect investors?
The more assets you have in your portfolio, the less you will be affected overall by a drop in the price of a single asset. It is also a good idea to select assets from different sectors or industries; so that if there is a crisis in sector 'A' that would negatively impact all stocks in that industry, stocks in sector 'B' will still be unaffected.
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Further reading
- Diversifying your investments
- Stock trading at Ally Invest: an expert guide and rating
- Ally Invest penny stocks trading conditions explained
- Ally Invest bond availability
- ETF trading conditions at Ally Invest explained
- Are margin interest rates low at Ally Invest?
- Are margin interest rates low at Ally Invest?
- Ally Invest cash interest rate
- Ally Invest ESG investing
- Ally Invest invest $100,000
- Ally Invest IPO accessibility
- Ally Invest Mexican stocks trading availability
- Ally Invest US stock trading details
- Ally Invest Australian stocks trading availability
- Ally Invest Canadian stocks trading availability
- Ally Invest Japanese stocks trading availability
- Ally Invest French stocks trading availability
- Ally Invest Italian stocks trading availability
- Ally Invest Swiss stocks trading availability
- Ally Invest Hong Kong stocks trading availability
- Ally Invest Dutch stocks trading availability
- Ally Invest Spanish stocks trading availability
- Ally Invest Singapore stocks trading availability
- Ally Invest Swedish stocks trading availability
- Ally Invest Norwegian stocks trading availability
Everything you find on BrokerChooser is based on reliable data and unbiased information. We combine our 10+ years finance experience with readers feedback. Read more about our methodology.