What is a fractional share?

A fractional share is a part of one share of stock or of an exchange-traded fund (ETF). For example, if the price of a stock is $100 and you invest $10, you would then own a fraction (1/10th) of that single stock. At etoro, you can buy fractional shares of stocks and ETFs of any size above our investment minimum. This gives you the opportunity to access more stocks because you are not required to purchase an entire share.

Please note that although fractional share trading can give you greater access to more stocks, there can be some limitations for this type of investing. For example, fractional shares purchased through etoro are illiquid outside of our platform and cannot be transferred.

Instead, such fractional shares can only be liquidated, and then the cash proceeds transferred. To learn more about fractional shares, please review the “Fractional Shares” section of your etoro Customer Agreement or a detailed explanation about “Fractional Share Investing” from the Securities and Exchange Commission.