Entering the stock market can feel intimidating, especially when high share prices make diversification seem out of reach. Fractional investing offers a practical alternative. Instead of buying whole shares, investors can allocate a specific dollar amount to a stock or ETF, making it easier to diversify with limited capital.

Webull supports fractional share trading on thousands of U.S. stocks and ETFs, allowing investors to get started with relatively small amounts. Below is a clear, step-by-step overview of how fractional investing works on Webull, along with key considerations to help you decide if it aligns with your investment goals.

How Fractional Share Trading Works on Webull

Fractional shares allow you to own a portion of a stock rather than an entire share. For example, if a stock trades at $100 and you invest $10, you effectively own 0.1 shares. This model enables broader diversification and lowers the entry barrier for expensive stocks.

Webull makes this process straightforward by allowing users to place trades based on dollar value rather than share quantity—provided the stock or ETF is eligible for fractional trading.

Step-by-Step: Buying Fractional Shares on Webull

Step 1: Create and Verify Your Account

Opening a Webull account is a fully digital process. You can register using a phone number or connect via Google or Facebook. Identity verification requires uploading a government-issued ID and providing basic personal, employment, and financial details. Most accounts are approved quickly, often within minutes.

Once approved, you can fund your account using an ACH transfer from a linked U.S. bank account.

Webull offers both cash and margin accounts. Cash accounts allow trading only with deposited funds, while margin accounts—available to users meeting minimum balance requirements—enable leveraged trading, which carries additional risk.

Step 2: Find an Eligible Stock or ETF

After logging in, search for the stock or ETF you want to invest in. Webull marks assets eligible for fractional trading with a distinct icon, making it easy to identify which securities support fractional purchases.

Step 3: Place a Trade

Tap the “Trade” option and select a market order. Currently, fractional trades on Webull are executed only as market orders and must be placed during regular market hours.

Step 4: Switch from Shares to Dollar Amount

Instead of entering the number of shares, change the order input from “Shares” to “USD.” Enter the dollar amount you wish to invest and carefully review the order details.

Step 5: Confirm and Submit

Once submitted, orders cannot be modified. Be sure to double-check the details before confirming your purchase.

Information Required to Open a Webull Account

Personal Details

You’ll need to provide:

• Full name and address

• Date of birth

• Social Security number

• Phone number and email

• Valid government-issued identification

Financial Background

Webull also requests basic employment and financial information. After approval, accounts can be funded via ACH or wire transfer (wire fees may apply).

Unlike full-service brokers, Webull focuses on execution rather than long-term financial planning, making it more suitable for self-directed investors.

Advantages of Using Webull for Fractional Investing

One of Webull’s strongest points is speed—both in account setup and trade execution. The platform provides access to a wide range of U.S. stocks and ETFs with no trading commissions.

Webull also offers:

• Solid charting and technical analysis tools

• A basic stock screener

• Market news aggregation

• Options trading for more active users

Margin trading is available but best suited for experienced investors due to the risks associated with leverage.

Key Factors to Consider Before Buying Fractional Shares

Asset Availability

Not all stocks or ETFs are eligible. Eligibility must be checked individually within the platform.

Costs and Fees

Webull charges no commissions on U.S. stock and ETF trades and has no account maintenance or inactivity fees.

Minimum Investment

Fractional trades can start with as little as $5, and there is no minimum deposit required to open an account.

Research and Education

Research tools are functional but limited. Educational content mainly covers platform usage and basic investing concepts.

Frequently Asked Questions

What Are Fractional Shares?

Fractional shares represent partial ownership of a stock or ETF. They allow investors to invest based on dollar amounts rather than full share prices, making diversification more accessible.

Is Webull a Full-Service Broker?

No. Webull is a discount brokerage focused on low-cost trading and execution. It does not offer personalized financial advice or comprehensive wealth management services.

Can Fractional Shares Be Profitable?

Fractional investing supports strategies like dollar-cost averaging, which can reduce the impact of market timing over the long term. Returns depend on the performance of the underlying assets.

Are There Alternatives to Webull?

Yes. Platforms like Charles Schwab and Fidelity also support fractional investing, though asset eligibility and minimums vary. Schwab, for example, allows fractional purchases of S&P 500 stocks but does not currently support ETF fractions.

Are Fractional Shares Harder to Sell?

Fractional shares can only be sold as market orders on Webull and cannot be transferred to another brokerage. Any fractional positions must be liquidated before account transfers.

Final Thoughts

Fractional share trading on Webull offers an accessible entry point for investors who want diversification without large upfront capital. While the platform may lack advanced research tools, its low costs, ease of use, and wide asset selection make it a strong option for beginners and cost-conscious traders.

For investors comfortable managing their own portfolios, fractional investing on Webull can be a simple and effective way to participate in the stock market.