How to start investing for as little as 1 dollar?

Gist

• Fractional shares refer to partial shares that investors may prefer instead of purchasing full shares.
• RockFlow offers investors the option to buy fractional shares of stocks and ETFs with a minimum investment of $1.

You don't have to be rich to invest in the stock market. Even with just one dollar, you can start building your portfolio. Fractional shares allow investors to purchase a small portion of their preferred companies or funds, without having to buy a whole share. This service is now offered by various financial services firms, including RockFlow.

So what's a fractional share?

Fractional Shares Explained

Fractional shares are a small portion of ownership in a company or ETF that allows investors to purchase less than a full share. This is beneficial as it enables individuals to invest in companies that they may not have been able to afford previously. In the past, investors had to wait until they had saved enough money to buy a full share, which could be costly, and by then, share prices may have risen, causing them to miss out on investment opportunities. However, with fractional shares, investors can start investing earlier and have access to a broader range of stocks and ETFs, regardless of their budget.

Nuts and Bolts: A Wide Range of Individual Stocks

If you purchase a fraction of a share of a particular stock, you will encounter the same level of risks and benefits as if you had purchased a whole share. RockFlow enables you to engage in real-time trading of fractional shares, which implies that trades executed during market hours are handled immediately.

There is a great deal of flexibility in the size of shares that you can buy, with the option to purchase as little as one ten thousandth of a share. This means that even if a stock is valued at thousands of dollars per share, you can still own a portion of it for just one dollar. However, not all investments are eligible for fractional share orders, and RockFlow sets a minimum requirement of stocks worth more than $1 per share with a market capitalization of more than $25 million. On the RockFlow app, you can customize the purchasing process to trade stocks in either dollar or share amounts, with the option to invest as little as $1. If a stock is not supported, you will be informed during the ordering process.

Investors who are inexperienced in stock selection but have funds to invest may find fractional shares attractive. They may opt to commence with a modest sum, distributing it across various enterprises or funds to initiate their trading style and portfolio equilibrium.