Getting into the stock market used to feel like an exclusive club reserved for people with lots of cash. If a single share of a company you loved cost $300 or $500, you had to save up a hefty chunk of change just to buy a single piece.
Thankfully, those days are gone. Today, fractional share investing completely changes the game, making the stock market open, affordable, and accessible to everyone.
What Is a Fractional Share?
Instead of buying a full share of a company, a fractional share allows you to buy just a piece or a fraction of one.
Think of it like a pizza: you don’t have to buy the whole pie to enjoy a slice. If a stock is trading at $400 per share, but you only want to put in $40, fractional investing lets you buy exactly 10% (or 0.10) of that share. You still get all the benefits—like earning proportional dividends or watching your money grow when the stock price goes up—just scaled to your budget.
Why Starting with Just $20 a Week Works Wonders
You do not need thousands of dollars to build a meaningful portfolio. In fact, starting with a modest $20 per week is one of the smartest ways to jump in.
- Breaks down barriers: Big-name tech and retail stocks that seem completely out of reach suddenly become affordable.
- Builds consistency: Setting aside $20 a week turns investing into a painless habit rather than a massive financial burden.
- Harnesses dollar-cost averaging: By investing a fixed $20 every single week, you automatically buy fewer shares when prices are high and more shares when prices dip. Over time, this smooths out market ups and downs.
Step-by-Step: How to Start Investing with Fractional Shares
Getting started on most modern trading platforms takes just a few minutes. Here is how to do it step by step:
- Pick a beginner-friendly platform: Choose an online brokerage or trading app that supports fractional shares (popular options like Robinhood, Fidelity, Charles Schwab, and SoFi all offer this feature with little to no trading fees).
- Open and fund your account: Sign up for an account, link your bank, and deposit your first small amount—even just your starting $20.
- Search for your stock: Look up a company or Exchange-Traded Fund (ETF) you want to own.
- Choose dollar-based trading: Instead of buying by the “share,” choose the option to buy by dollars. Type in your $20 amount.
- Place your order: Hit submit. You now officially own a slice of that company! Most platforms even let you set up recurring weekly deposits so your $20 invests automatically on autopilot.
You don’t need to wait for a fortune to start investing. Grab a modest $20 bill, pick a company you believe in, and take your very first step into the market today.