Fractional shares have revolutionized the way individual investors can participate in the stock market, especially concerning high-value stocks that might seem otherwise unattainable. This blog will delve into what fractional shares are, address some common questions about their trade and dividends, and highlight the advantages of investing in fractional shares through Tiger Brokers.
Understanding Fractional Shares
Fractional shares allow investors to purchase a part of a stock rather than a full share. This means if a stock’s price is particularly high, an investor doesn’t need to have the full amount for one share but can buy a fraction of it according to their investment capacity.
Common Questions About Fractional Shares
Can fractional shares be traded intraday?
Yes, fractional shares can be traded just like normal shares. They can be bought and sold during the trading day, making them as flexible and accessible as full shares for intraday trading.
Do fractional shares pay dividends?
Yes, fractional shares do pay dividends proportionate to the fraction of the share owned. If a company pays dividends on its shares, the owner of a fractional share will receive a corresponding portion of those dividends. In the case of stock dividends, where additional shares are distributed instead of cash, fractional shareholders will receive cash equivalent to their share portion instead of fractional shares of the stock.
Why Choose Tiger Brokers for Investing in Fractional Shares?
Investing in fractional shares through Tiger Brokers comes with a host of benefits that enhance the investing experience for both novice and experienced traders.
1. Accessibility to Major Stocks and ETFs:
Tiger Brokers offers fractional shares in a wide range of US stocks and ETFs, including blue-chip and S&P 500 companies. This access allows investors to diversify their portfolios without needing substantial capital to invest in high-priced stocks.
2. Flexible and Convenient Trading:
With Tiger Brokers, trading fractional shares is as straightforward as trading full shares. The platform facilitates intraday trading of fractional shares, providing flexibility for investors to make timely decisions based on market movements.
3. Dividend Payments:
Investors holding fractional shares through Tiger Brokers receive dividends just like any other shareholder. This means that even with a smaller investment, you can still benefit from dividend payouts, making it a more appealing option for those looking to start small.
4. Transparent and Informative Platform:
Tiger Brokers offers a transparent trading platform where investors can easily find information on which stocks and ETFs are available for fractional share trading. The platform also provides detailed data about each stock, helping investors make informed decisions.
5. No Restrictions on Closing Positions:
Tiger Brokers does not impose limitations on closing fractional positions, which gives investors greater control over their investments. This flexibility is particularly valuable in a volatile market where quick decision-making is crucial.
6. User-Friendly Experience:
The Tiger Brokers platform is designed to be intuitive and easy to navigate, making it accessible even for those new to investing. This ease of use is complemented by robust customer support to assist with any trading queries or issues.
Conclusion
Fractional shares offer a practical and efficient way for investors to gain exposure to the stock market, particularly in high-value stocks, without committing a large amount of capital. Tiger Brokers provides an excellent platform for trading fractional shares, with benefits ranging from flexibility in trading to receiving dividends proportionally. For anyone looking to expand their investment portfolio or enter the market with limited funds, Tiger Brokers’ fractional shares present a compelling option. While this article explores the advantages of using Tiger Brokers for fractional shares, it does not provide investment advice.
