Fidelity fractional share purchasing – very useful for small transactions

Fidelity has a very robust fractional share offering

The highlight of what they are offering is that you can invest as little as $1 and buy a fractional share on 7,000 stocks and ETFs listed on U.S. exchanges. You can use Market orders or Limit orders. You can make Market on Open and Market on Close orders. This is a great way to dollar cost average your investments and allows you to invest in stocks or ETF’s even though you might not have enough dollars to buy a whole share. Fidelity does not charge commissions on their stock and ETF transactions, just like most brokers. Fidelity also does not pay for order flow (PFOF).

They offer more in this area then any of their main competitors.

  • Schaub – allows fractional shares only on SP500 stocks
  • RobinHood – Allows fractional shares with restrictions
  • Interactive Brokers – Allows fractional shares with restrictions
  • Etrade – Does not allow fractional shares purchases
  • Merrill Edge -Does not allow fractional shares purchases
  • Vanguard – Does not allow fractional shares purchases on most stocks and ETF’s
  • Tastytrade – Allows fractional shares with restrictions

Backtest of the three portfolios

Model Portfolio Compounded Percentage

Mid Cap Flyers2072%
Small Cap Discoveries22273%
CANSLIM Growth5776%
MDY – Mid Cap322%
IJR – Small Cap422%
BackTest 2004 thru 2022 of all four Model Portfolios with Benchmarks

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