How you can start investing in US stock with just 1 dollar

Published on
17/2/20
by
Passfolio

Some people want to buy and sell stocks, but just don’t have that much money to invest. Luckily, Passfolio supports fractional shares, so users can buy as little as $1 of any stock - even those that cost thousands of dollars.¹


A fractional share is a piece of a whole share of stock. Suppose a company called XYZ has its shares trading at US$ 100 per share. With Passfolio, you can buy a quarter of an XYZ share and pay just US$ 25. 



How fractional shares work


All shares are held by Passfolio’s clearing broker partner, Drivewealth (which also powers similar apps in the US like Revolut). DriveWealth’s unique fractional share program allows you to purchase securities in dollar amounts rather than share quantities.


Fractional shares have some limitations, however. For instance, we do not accept limit orders for fractional shares and fractional shares are not transferable - if you close your account or transfer your account to another firm, the fractional share will need to be liquidated.


We also round the amount of fractional shares you can purchase and own in your account down to the nearest four decimal places, which may affect your ability to be credited for cash dividends, stock dividends and stock splits. 


Before purchasing fractional shares, please read this important disclosure.


Why we accept fractional shares


At Passfolio, we believe fractional shares can help make US stocks more accessible to people around the world. By offering fractional shares, we allow our users to buy pieces of stock as a more affordable alternative to buying full shares. 


If you have any questions or concerns regarding fractional shares, feel free to reach out to us at support@passfolioapp.com 



‍¹Please see our Fractional Shares Disclosure

Please read important legal disclosures that apply to your relationship with Passfolio.