What is a fractional share?

A fractional share is a partial share of an equity security equal to or less than one full share. Trading on an exchange can only happen in whole shares, which is why many investment platforms only allow you to trade in whole shares. However, unlike many other investment services, Swell uses fractional shares to make sure that all of the money that you’ve allocated for investment is actually invested.

When you invest with Swell, you set the dollar amount that you wish to invest. Our platform then allocates the number of shares to you, even if they’re less than whole shares of stock. The full investment of every dollar according to your desired asset allocation means that your money is getting absolutely the most value possible out of investing. In addition, this means that our service is equal to all investors. An investor with a $4,000 account receives the same diversification benefit as one with a $4 million account.

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