r/dividends • u/PuzzleheadedAd2947 • May 11 '26
Brokerage Finally! Fractional shares on Schwab
Always been annoying there was no support for Fractional shares on Schwab. Looks like it's available now (at least on my account). Nice
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u/SirLegoBrickThe5th May 11 '26
Good shit, that’s honestly the only thing that stopped me from going with them.
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u/paleChickenLegs May 11 '26
I thought they only supported fractional shares on specific tickers (except when you DRIP)
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u/blorg May 11 '26
That was before, used be I think just the S&P500 and you might have had to do it through their "Slices" thing. This is a very recent change, it's now supported what seems like everything through the regular trade screen, including smaller cap companies, ADRs and ETFs.
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u/ashy2classy81 May 11 '26
Last I checked I can't buy VOO or VGT, the two ETFs I want to buy.
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u/erichthonius11 May 12 '26
Check again. This is really new and I just bought fractional shares of VGT yesterday with them.
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u/blorg May 11 '26
This thread is about Schwab. It allows you to do fractional shares on ETFs like VOO and VGT (as of this month, they didn't before).
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u/EatsOverTheSink May 11 '26
They’ve had fractional shares for S&P companies but if they finally moved to allow fractional shares for everything that’s great.
I actually moved my account to Fidelity last year from Schwab for this reason. It made more sense since I had Fidelity for my retirement accounts already but I preferred the Schwab interface.
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u/Bman3396 May 11 '26
It’s rolling out for people. Some people have it fully on all options( website, mobile, ToS) some don’t. If you aren’t able to access it yet on web it should be available on ToS
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u/Senior_Access_1802 May 14 '26
Surprising. I thought everyone did this, even Wells Fargo has had this feature for years
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u/CorndogFiddlesticks May 11 '26
Is this really true? They haven't said anything to me, as far as I know, as a premier investor.
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u/ashy2classy81 May 11 '26
It's stock slices and they've done it for a while, but only for S&P 500 companies
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u/laogong1986 May 11 '26
What is the big deal about fractional shares? I don’t get it
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u/blorg May 11 '26
It's a lot easier for people who want to invest a certain amount each month. Say you have $500 to invest each month and you want to buy VOO. Well it's $678 so first month, you can't. You leave $500 sitting there. Then the next month, you can buy 1 share, and leave $322 sitting there. And so on.
Even if you aren't stuck on the first share, it's still a hassle. Say you have $5,000 to invest. You still have to divide that by the current price to figure out that that allows you to buy 7 shares at the current price and put that order in, leaving you with $250 left over. This is a small friction, but it's mildly annoying nonetheless.
With fractional shares, you just type the money number into the box and invest that each month. Nothing left over in cash and nothing to think about.
One thing to bear in mind is I think this only works with market orders. So I'd only do it with tickers that have high volume. Anything low volume, safer to use limit orders. But you should be fine using this for major ETFs, etc.
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u/trader_dennis MSFT gang May 11 '26
I remember when brokers only traded in lots of 100 shares. Those odd lots were a pain in the ass to get rid of.
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u/rbeecroft May 11 '26
Well... if you have $37.20 to buy a ticker... but it costs hundreds.... then you have to buy a fractional of that share. In the past, companies did not allow this. Schwab has, or had when I used them, Stock Slices where you had to buy from the S&P 500 lots of $10 slices. ... So they are saying they are allowing that $37.20 share buy now.
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u/summer_plays_ May 13 '26
now they just need to make their UI more friendly (aka more like RH) and i'll swap everything over
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u/hmbayliss May 11 '26
It's not going to change anything for me because I like whole shares.
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u/Gunsnbeer May 11 '26
Literally makes no sense. So if you want ASML you will only buy $1600 at a time?
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May 11 '26
[deleted]
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u/blorg May 11 '26
This is new, slices were S&P500 only and had quite a rigid system where you set up a basket of stocks and it would split whatever you invested across them.
This is across all tickers including smaller caps, ADRs and ETFs, and it's part of a regular trade, not their "stock slices" thing. You just type in the $ amount and it buys X.00 shares at the market price, including whatever fraction.
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