Robinhood fractional investing allows you to buy portions of any stock for as little as one dollar. This is a great way for investors to turn pocket change into productive, revenue generating assets. You can now own part of Coca-Cola, Apple, or the S&P 500 for the price of a Snickers Bar.
Here’s what you do…
How To Buy Fractional Shares On Robinhood
To start, you’re going to need the Robinhood app (if you don’t have it yet, use one of the referral links in this article. It’ll give you a free welcome stock when you sign up), and next you’ll need an asset you want to buy.
When you select your stock, click the “Buy” tab.
You’ll then see a menu for “Order Types.” Here, you’ll see two choices under “Market Orders,” these are “Buy In Dollars” and “Buy In Shares.”
Either choice allows you to purchase fractional shares. However, I personally use “Buy In Dollars” because it is a bit easier. You just plug in the amount of money you’d like to invest, and Robinhood does the rest.
This is a very simple process. If you can book an Uber or order food online, you can easily buy fractions of a stock through Robinhood.
Why Purchase Fractional Shares
Now that we’ve covered how to use fractional investing, let’s talk about why it is a good idea.
The biggest reason is that fractional investing allows people to start investing without huge capital. Certain stocks are very expensive when buying in full shares (Amazon and Google each cost…