TradeZero fractional shares trading conditions explained

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Can I buy fractional shares at TradeZero as of October 2024?

No, fractional shares are not available at TradeZero.

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TradeZero is a global stock broker with commission-free trading.

TradeZero

4.2/5

Minimum deposit

$250

Stock fee

Low

Options fee

Low

Inactivity fee

Account opening

1 day

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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 TradeZero?

Fractional shares are not available at TradeZero

TradeZero main highlights
💰 TradeZero withdrawal fee	$50
💰 TradeZero minimum deposit	$250
💰 TradeZero inactivity fee	No
📃 TradeZero deposit methods	Bank transfer
🗺️ Country of regulation	Bahamas, United States, Canada
🎮 TradeZero demo account	Yes

Data updated on October 1, 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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Fractional shares trading at TradeZero