Schwab’s Stock Slices programme lets you buy fractional shares of any S&P 500 stock for as little as $5 per slice. A standout feature: you can buy up to 30 different stocks in a single transaction, making it easy to instantly diversify a small investment across the entire S&P 500 if you choose. Dividends, stock splits, and voting rights apply proportionally. Schwab charges $0 commission on all Stock Slices orders.
How Schwab Stock Slices Works
Step-by-step:
- Log in to schwab.com or the Schwab mobile app
- Go to Trade → Stock Slices
- Search and add up to 30 S&P 500 stocks
- Set the dollar amount for each slice ($5 minimum per stock)
- Review the total and submit
Schwab executes fractional orders at market price during trading hours. After-hours orders are queued for the next open.
Multi-Stock Ordering: Schwab’s Unique Feature
Schwab’s ability to buy up to 30 stocks in a single order is not available at Fidelity or most other brokers. This means you can invest $150 and immediately split it across 30 different S&P 500 companies — each receiving a $5 slice — in one transaction.
Which Securities Are Eligible?
| Asset Type | Eligible? |
|---|---|
| S&P 500 stocks | Yes — all ~500 |
| Non-S&P 500 stocks | No |
| ETFs | No |
| Mutual funds | No |
| International stocks/ADRs | No |
Like Fidelity, Schwab limits fractional shares to S&P 500 components only. If you need fractional ETF investing, M1 Finance and Interactive Brokers are alternatives.
Eligible Account Types
| Account Type | Stock Slices Available? |
|---|---|
| Individual brokerage | Yes |
| Joint brokerage | Yes |
| Roth IRA | Yes |
| Traditional IRA | Yes |
| Rollover IRA | Yes |
| Custodial (UTMA) | Yes |
| Trust accounts | Check with Schwab |
Stock Slices is available in IRAs — a meaningful advantage for investors building tax-advantaged retirement accounts with limited contributions.
Worked Example: $200 Across 10 S&P 500 Stocks
| Stock | Dollar Invested | Share Price | Fraction |
|---|---|---|---|
| Apple (AAPL) | $20 | ~$200 | 0.10 |
| Nvidia (NVDA) | $20 | ~$900 | 0.022 |
| Amazon (AMZN) | $20 | ~$185 | 0.108 |
| Tesla (TSLA) | $20 | ~$175 | 0.114 |
| Meta (META) | $20 | ~$600 | 0.033 |
| Microsoft (MSFT) | $20 | ~$430 | 0.047 |
| Alphabet (GOOGL) | $20 | ~$180 | 0.111 |
| Berkshire B (BRK.B) | $20 | ~$450 | 0.044 |
| JPMorgan Chase (JPM) | $20 | ~$240 | 0.083 |
| Eli Lilly (LLY) | $20 | ~$800 | 0.025 |
All 10 in one transaction. Total: $200 invested across 10 large-cap companies with full proportional dividend rights.
Dividends and Reinvestment
Dividends on Stock Slices are proportional to your ownership:
- Own 0.05 shares of a stock paying a $4 annual dividend → receive $0.20/year
- Schwab’s Dividend Reinvestment Plan (DRIP) can automatically reinvest dividends into additional fractional shares of the same stock
- Dividends are reported on your 1099-DIV and are taxable (qualified or ordinary depending on the stock)
Transferring and Selling Fractional Shares
Selling: Sell fractional slices at any time during market hours for the proportional cash value.
ACATS transfers: Schwab can transfer whole shares to another brokerage through ACATS. Fractional positions are typically liquidated to cash before the transfer — verify this with the receiving broker before initiating the transfer.
Between Schwab accounts: You can transfer fractional share positions between your Schwab accounts (e.g., from brokerage to IRA).
Schwab Stock Slices vs. Fidelity Stocks by the Slice
| Feature | Schwab | Fidelity |
|---|---|---|
| Minimum per slice | $5 | $1 |
| Multi-stock order | Up to 30 stocks at once | One stock at a time |
| Eligible securities | S&P 500 stocks | S&P 500 stocks |
| ETFs eligible | No | No |
| IRA eligible | Yes | Yes |
| Dividend reinvestment | Yes (DRIP) | Yes (DRIP) |
| Commission | $0 | $0 |
Fidelity has a lower minimum ($1 vs. $5), but Schwab’s multi-stock order feature is a genuine advantage for diversification. Both are excellent options for building a portfolio with any budget.
Related reading:
- Schwab Stock Screener 2026 — Stock Hacker and Research Tools
- Schwab Roth IRA 2026 — How to Open and Invest
- Charles Schwab vs Vanguard 2026
- Best Brokerage Accounts 2026
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