How to Buy Fractional Shares on Webull

How to buy fractional shares on Webull: Investing can seem daunting, especially if you’re just starting and don’t have a lot of money to invest. That’s where fractional shares come in; a tool that allows you to own portions of high-value stocks without breaking the bank.

Webull, a popular online brokerage, makes buying fractional shares straightforward and accessible. If you’re wondering how to get started, here’s a step-by-step guide that explains everything you need to know about buying fractional shares on Webull.

What You’ll Need to Open a Webull Account

To buy fractional shares on Webull, the first step is to set up an account. Here’s the basic information you’ll need to provide during the registration process:

• Social Security number
• Photo identification (driver’s license, passport, or permanent resident card)
• Employer’s name and address (if applicable)
• Bank account details for funding your account

The good news? Webull doesn’t charge fees for opening an account, and there’s no minimum deposit requirement. To start buying fractional shares, you’ll only need $5.

Related: How to Invest in Web 3.0

Step-by-Step Guide to Buying Fractional Shares on Webull

Decide on the Type of Webull Account You Need

Before you dive in, it’s important to choose the right account type. Webull offers several options, each tailored to different investment goals;

• Individual Brokerage Account: The most common type for general investing. However, it doesn’t come with tax advantages, meaning you’ll owe capital gains tax on profits.
• Traditional IRA: A tax-deferred retirement account where contributions can lower your taxable income. You’ll pay taxes on withdrawals later.
• Roth IRA: Contributions are made with after-tax income, but qualified withdrawals in retirement are tax-free.
• Rollover IRA: Ideal if you’re transferring funds from a 401(k) or another eligible retirement account.

For fractional investing, most people start with an individual brokerage account.

Open Your Webull Account

Creating an account is very easy and can be done by following these steps;

• Download the Webull app or visit their website.
• Provide your email or phone number to create an account. You can also sign up using your Google or Facebook profile.
• Once you enter your email, Webull will send a verification code. Use it to set a password and start the onboarding process.

At this stage, you’ll need to enter personal details like your name, address, Social Security number, and employer’s information (if applicable). Uploading a valid photo ID will also be required.

Answer Investment Profile Questions

Webull will ask a few questions to help customize your investment experience. These include:

• Are you associated with a broker-dealer?
• Are you a director or major shareholder of a public company?
• What is your annual income, total net worth, and liquid net worth?

You’ll also answer questions about your investment goals, timeline, and experience. These answers don’t affect your ability to invest; they’re just used to create your investor profile.

Fund Your Webull Account

Once your account is set up, it’s time to fund it. On the Webull app or website, select the “Make Your First Deposit” button and provide your bank details. There’s no minimum funding requirement, so you can start with as little as $5.

Search for Fractional Shares

Now comes the exciting part; buying fractional shares! Webull offers a simple way to find and invest in fractional stocks.

• Find a stock or ETF available for fractional investing. Stocks eligible for fractional shares will have a green diamond icon next to their name.
• Use the app’s search bar to locate your desired stock or ETF.

Place Your Fractional Share Order

Here’s how to complete your fractional share purchase:

• Click the “Trade” button: Once you select your stock, click the trade button.
• Switch the order type: Change the order type from “Limit” to “Market.” This ensures your purchase will be executed during trading hours.
• Set the amount in USD: Beneath the order type section, select the option to enter the amount in dollars instead of shares. Input the exact dollar amount you want to invest (minimum $5).
• Review and confirm: Double-check the details and click “Buy.” It’s important to note that once your order is placed, it can’t be modified.

Congratulations, you’ve officially purchased fractional shares on Webull!

What Are Fractional Shares?

Fractional shares allow you to buy a portion of a stock rather than a whole share. For example, if a stock costs $1,000 and you only have $50 to invest, fractional investing lets you own 5% of the stock. This is a game-changer for investors who want access to high-value companies but don’t have a lot of capital.

Fractional shares are also great for diversification. Instead of putting all your money into one stock, you can spread it across multiple companies, even with a small investment budget.

Selling Fractional Shares on Webull

Selling fractional shares is just as simple as buying them. However, there are a few things to keep in mind:

• You’ll need at least 0.00001 shares to place a sell order.
• Fractional shares may take longer to sell compared to full shares, as their demand depends on the market.

While there’s no minimum amount required to close a fractional position, it’s important to be aware of these nuances.

Why Choose Webull for Fractional Investing?

Webull stands out for its user-friendly platform, commission-free trading, and low barrier to entry. Whether you’re a beginner or an experienced investor, its tools and resources make it easy to manage your portfolio. With just $5, you can begin building wealth one fraction at a time. If you’re ready to take control of your financial future, buying fractional shares on Webull is a great way to start.

Conclusion

Webull offers a powerful platform for anyone looking to invest in fractional shares. Whether you’re dipping your toes into the stock market or expanding your portfolio, the process is straightforward and accessible. By following these steps, you’ll be on your way to owning portions of your favourite stocks and ETFs in no time. Let us know your thoughts in the comments.