Fidelity’s Stocks by the Slice programme lets you buy a fraction of any S&P 500 stock for as little as $1. Instead of paying $200 for one full share of a stock, you can invest exactly $50, $10, or $1 — and own a proportional slice of the company. Dividends, stock splits, and all shareholder rights apply proportionally to fractional holdings. Fidelity offers this on its website and mobile app at $0 commission.
How Fidelity Stocks by the Slice Works
Fidelity’s fractional share programme is dollar-based: you enter the dollar amount you want to invest, and Fidelity calculates how many shares (including the fraction) that buys at the current price.
Step-by-step:
- Log in to Fidelity.com or the Fidelity mobile app
- Search for any S&P 500 stock
- On the order ticket, select “Dollars” instead of “Shares”
- Enter the dollar amount (minimum $1)
- Review the order and submit
Fidelity executes fractional share orders at the next available price during market hours. Orders placed after hours are queued for the next market open.
What Accounts Are Eligible?
| Account Type | Eligible for Stocks by the Slice? |
|---|---|
| Individual brokerage | Yes |
| Joint brokerage | Yes |
| Roth IRA | Yes |
| Traditional IRA | Yes |
| Rollover IRA | Yes |
| 529 plan | No |
| HSA | No (not a brokerage account) |
Which Stocks Can You Buy as Fractions?
Fidelity limits fractional share purchases to S&P 500 components — approximately 500 companies. This includes all major U.S. large-cap stocks:
| Category | Examples |
|---|---|
| Technology | Apple, Microsoft, Nvidia, Meta, Alphabet |
| Consumer | Amazon, Tesla, Costco, McDonald’s |
| Healthcare | UnitedHealth, Johnson & Johnson, Eli Lilly |
| Financials | JPMorgan Chase, Berkshire Hathaway, Visa |
| Energy | ExxonMobil, Chevron |
| Industrials | Caterpillar, Honeywell, Boeing |
What’s NOT eligible at Fidelity:
- Stocks outside the S&P 500 (small-cap, mid-cap, international)
- ETFs (including Fidelity’s own zero-expense ETFs like FZROX)
- Mutual funds
- ADRs and foreign stocks
If you want fractional ETF purchases, Schwab offers fractional shares on both stocks and ETFs through its Stock Slices programme.
Worked Example: Investing $100 in a Diversified Portfolio
With $100 and Stocks by the Slice, you can build a diversified S&P 500 portfolio immediately:
| Company | Dollar Invested | Approx. Share Price | Fraction Owned |
|---|---|---|---|
| Apple (AAPL) | $20 | ~$200 | 0.10 shares |
| Nvidia (NVDA) | $20 | ~$900 | 0.022 shares |
| Berkshire B (BRK.B) | $20 | ~$450 | 0.044 shares |
| Amazon (AMZN) | $20 | ~$185 | 0.108 shares |
| Johnson & Johnson | $20 | ~$155 | 0.129 shares |
This is exactly how the programme is designed to work — enabling diversification at any budget, removing the barrier that high per-share prices previously created.
Dividends and Fractional Shares
Dividends are paid proportionally on fractional holdings:
- $0.25 fractional share of a stock paying a $2 quarterly dividend → you receive $0.50
- Fidelity’s DRIP (Dividend Reinvestment Programme) can automatically reinvest dividends into additional fractional shares
- Dividends are taxable in the same way as whole-share dividends (qualified vs. ordinary)
Selling and Transferring Fractional Shares
Selling: You can sell fractional shares at any time during market hours — just select “Sell” and specify the dollar amount or the share quantity (e.g., 0.25 shares).
Transferring: Fractional shares can be transferred between Fidelity accounts. When transferring to another brokerage (ACATS transfer), fractional positions may need to be liquidated — check with the receiving broker before initiating a transfer.
Fidelity vs. Schwab vs. Robinhood for Fractional Shares
| Feature | Fidelity | Schwab | Robinhood |
|---|---|---|---|
| Programme name | Stocks by the Slice | Stock Slices | Fractional shares |
| Minimum per trade | $1 | $5 | $1 |
| Eligible securities | S&P 500 stocks only | S&P 500 stocks only | Most stocks + some ETFs |
| ETFs eligible? | No | No | Limited |
| Dividend payments | Proportional | Proportional | Proportional |
| DRIP (auto-reinvest) | Yes | Yes | Yes |
| Account types | Individual, IRA | Individual, IRA | Individual only (no IRA) |
| Commission | $0 | $0 | $0 |
Both Fidelity and Schwab limit fractional shares to S&P 500 stocks with a $1 and $5 minimum respectively. For fractional ETF investing, Interactive Brokers allows fractional ETF purchases.
Why Fractional Shares Matter for New Investors
Before fractional shares existed, a single share of Berkshire Hathaway Class B cost over $400 — pricing many investors out of owning certain stocks entirely. Stocks by the Slice eliminates this barrier:
- Invest any dollar amount — whether $5, $50, or $500, you can be fully invested
- Dollar-cost averaging — invest a fixed dollar amount regularly regardless of share price fluctuations
- Instant diversification — spread a small amount across multiple companies
- No idle cash — put every dollar to work rather than waiting to accumulate enough for a full share
Related reading:
- Fidelity Zero Expense Ratio Funds 2026
- Fidelity Roth IRA 2026 — How to Open and What to Invest In
- Fidelity vs Schwab 2026
- Best Brokerage Accounts 2026
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