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What is a fractional share?

A fractional share is a fraction of a whole share. Companies issue whole units of stocks, called shares, which are then traded on the public market for investors to buy. If you buy a fractional share, that means you're buying a piece of a company's stock.

Whereas a single share in a company might cost USD1,000, fractional shares mean you can still invest in a company with USD10 or USD100.

Limits to buy fractional shares

You'll need to invest at least USD1 for US securities and EUR1 for EU securities. The minimum amount of shares you can buy is 0.00000001.

Currently, you can't submit fractional shares for limit orders.

Risks of fractional shares

Fractional shares do not carry voting rights, meaning you cannot participate or vote at shareholder meetings unless you hold a whole share. They also have transferability limitations between brokers, which may force liquidation.

Finally, fractional shares may be subject to additional risks, such as high volatility and liquidity constraints.