Interactive Brokers empowers you to invest in your preferred companies regardless of their share price through Fractional Shares trading. In this lesson you will explore how this innovative feature allows you to allocate a specific dollar amount to a stock purchase, even if it doesn’t translate to a whole number of shares. This feature offers a lot of benefits like: investing in previously out-of-reach stocks due to their high individual share price, allocating a set amount across multiple stocks, even those with high share prices, to create a well-diversified portfolio and investing any dollar amount you choose, providing greater control over your portfolio construction.
You should always remember to activate fractional share trading permission within your Client Portal before placing fractional share orders, otherwise it won’t work as planned. By leveraging fractional shares, you can unlock greater investment flexibility and construct a diversified portfolio tailored to your goals.