Does E*TRADE offer fractional shares?

E*TRADE's fractional share support is limited compared to Fidelity and Schwab. E*TRADE does offer dividend reinvestment (DRIP) in fractional amounts — so if a dividend payment would buy 0.3 shares, it does. However, E*TRADE does not offer a dedicated dollar-based fractional share buying programme for individual stock purchases the way Fidelity's Stocks by the Slice or Schwab's Stock Slices do. Investors who want to buy $50 of Amazon without buying a full share should consider Fidelity or Schwab instead.

Can you buy fractional shares of ETFs at E*TRADE?

E*TRADE does not offer a fractional ETF purchase programme. You can only buy whole shares of ETFs at E*TRADE. For fractional ETF investing, consider M1 Finance, Interactive Brokers, or Fidelity (for select ETFs in some account types).

What is DRIP at E*TRADE?

DRIP stands for Dividend Reinvestment Plan. At E*TRADE, you can enrol eligible dividend-paying stocks in DRIP, which automatically reinvests your dividend payments into additional whole or fractional shares of the same stock. This is E*TRADE's main fractional share mechanism — dividends are reinvested in fractions, but you cannot purchase fractional shares directly with fresh cash.

Which broker is better than E*TRADE for fractional shares?

Fidelity's Stocks by the Slice (minimum $1) and Schwab's Stock Slices (minimum $5) are both significantly better for fractional share investing. Both allow you to buy dollar amounts of any S&P 500 stock — without needing a full share. E*TRADE is a strong broker for options and research, but fractional share investing is not one of its strengths.

E*TRADE Fractional Shares 2026 — Does E*TRADE Offer Fractional Investing?

E*TRADE does not offer a direct fractional share purchase programme for individual stock buys in the way Fidelity (Stocks by the Slice, $1 minimum) or Schwab (Stock Slices, $5 minimum) do. E*TRADE’s fractional exposure is limited to DRIP (Dividend Reinvestment Plan) — where dividends are automatically reinvested into fractional shares — and some automated investing features. If your goal is to invest $50 in a $400 stock, Fidelity or Schwab are the better choices.

What E*TRADE Does Offer (Fractional-Adjacent)

1. Dividend Reinvestment Plan (DRIP)

ETRADE’s DRIP reinvests dividend payments automatically into additional shares, including fractions. This is the primary way you accumulate fractional positions at ETRADE.

How it works:

Enrol an eligible stock in DRIP through your account settings
When a dividend is paid, E*TRADE uses the cash to purchase additional shares
If the dividend payment is $4.20 and the stock trades at $200, you receive 0.021 additional shares
Over time, fractional shares accumulate through this reinvestment process

Eligible securities for DRIP at E*TRADE: Most dividend-paying U.S. stocks and ETFs. Not all stocks qualify — E*TRADE maintains a list of DRIP-eligible securities.

2. Core Portfolios (Automated Investing)

E*TRADE’s Core Portfolios robo-advisor does invest in fractional ETF shares as part of its portfolio construction — you can start with $500 and own partial positions in each ETF in the portfolio. This is fractional investing, but it’s managed for you rather than self-directed.

Core Portfolios minimum: $500
Management fee: 0.30% annually

3. Prebuilt Portfolios

E*TRADE offers a limited selection of pre-built thematic portfolios that may include fractional allocations, but again this is managed investing rather than choosing individual fractional share purchases.

What E*TRADE Does NOT Offer

Feature	E*TRADE	Fidelity	Schwab
Buy $X of any stock (fractional)	❌	✅ ($1 min)	✅ ($5 min)
S&P 500 fractional programme	❌	✅	✅
DRIP (dividend reinvestment)	✅	✅	✅
Fractional ETF buying (manual)	❌	Limited	❌
Automated fractional (robo)	✅ ($500 min)	✅	✅

E*TRADE does not have a self-directed “buy $X of this stock” feature. You must buy whole shares when placing standard stock orders.

When E*TRADE’s Limitations Don’t Matter

If fractional shares are not part of your investing strategy, E*TRADE remains an excellent broker:

Active traders who focus on options, full-share equity trades, and Power E*TRADE tools
Retirement investors using IRAs for full-share index ETF investing
Morgan Stanley research users who want institutional equity analysis
Income investors using DRIP to automatically compound dividends

The fractional share gap only matters if you’re trying to invest specific dollar amounts in high-priced stocks or want to buy exactly $25 of Nvidia or Berkshire Hathaway.

If fractional shares are important to you:

Broker	Programme	Minimum	ETFs?
Fidelity	Stocks by the Slice	$1	Limited
Schwab	Stock Slices	$5	No
Robinhood	Fractional shares	$1	Limited
M1 Finance	Pie investing	$100	Yes
Interactive Brokers	IBKR Lite/Pro	$1	Yes

M1 Finance is worth considering if you want fractional ETF investing alongside fractional stocks — its pie-based portfolio structure fully supports fractional positions in both asset classes.

The Bottom Line

E*TRADE is a strong broker for options trading, Morgan Stanley research, and retirement accounts — but it is not the right choice if dollar-based fractional stock investing is a core part of your strategy. For that, Fidelity (Stocks by the Slice, $1 minimum) or Schwab (Stock Slices, $5 minimum) are the better options.

Related reading:

Written by WealthVieu

WealthVieu researches and writes data-driven personal finance guides using primary sources including the IRS, Bureau of Labor Statistics, Federal Reserve, and Census Bureau.

The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy