Yes, Robinhood lets you buy fractional shares of most stocks and ETFs

Robinhood allows you to purchase fractional shares — pieces of a single share rather than whole shares — for most stocks and exchange-traded funds (ETFs) on its platform. This means you can invest a specific dollar amount, like $50 or $100, and own a portion of an expensive stock without needing thousands of dollars upfront. Fractional shares trade during regular market hours (9:30 a.m. to 4 p.m. Eastern Time on weekdays) and are settled the same way as whole shares.

The fractional share feature is built into Robinhood's standard trading interface. You do not need a special account type or to turn on a setting — when you enter a dollar amount instead of a share quantity, you are automatically buying fractional shares. The platform rounds your purchase to eight decimal places, so you might own 2.47382951 shares of a stock, for example.

Key Takeaways

  • You can buy fractional shares by entering a dollar amount in the order screen instead of typing a number of whole shares.
  • Fractional shares work with most stocks and all ETFs, but some securities like certain penny stocks or newly listed companies may not support them.
  • Fractional shares trade during regular market hours only — you cannot buy them during pre-market or after-hours sessions.
  • Dividend payments on fractional shares are paid proportionally; if you own 0.5 shares and the dividend is $2 per share, you receive $1.
  • Robinhood charges no commission or fractional share fees, though the bid-ask spread (the difference between buy and sell prices) still applies.

How to place a fractional share order on Robinhood

Open the stock or ETF you want to buy and tap the "Buy" button. In the order screen, you will see a field that defaults to "Shares" with a number input box. Tap that field and switch it to "Dollars" — this is the key step. Now type the dollar amount you want to spend, anywhere from $1 to the maximum your account balance allows.

Review the order preview, which shows you exactly how many fractional shares you will receive at the current market price. Tap "Review Order," confirm the details, and then tap "Submit Order" to execute the trade. The order processes when ready during market hours and settles in your account by the next trading day.

If you try to buy a security that does not support fractional shares, the "Dollars" option will not appear — you will only see the "Shares" field. In that case, you must buy in whole-share increments.

Which securities support fractional shares on Robinhood

Most stocks listed on major U.S. exchanges (Nasdaq, NYSE, AMEX) support fractional shares on Robinhood. This includes large-cap stocks like Apple and Microsoft, mid-cap and small-cap stocks, and the vast majority of ETFs. Robinhood has expanded fractional share coverage over time, so the list of supported securities is large.

Some securities do not support fractional shares. These typically include penny stocks (stocks trading under $5), stocks that recently went public through an IPO, and certain delisted or suspended securities. Robinhood's app will not show the "Dollars" option for these securities, so you will know when ready whether fractional shares are available for what you want to buy.

Fractional shares and dividends

When a company pays a dividend, you receive your proportional share of it. If you own 0.75 shares of a stock and the company pays a $4 dividend per share, you receive $3. Robinhood deposits dividend payments directly into your account, and fractional dividends are paid in full — you do not lose money due to rounding.

Dividend payments arrive on the ex-dividend date (the date by which you must own the shares to receive the payment). Robinhood handles the timing automatically; you do not need to do anything. If you sell your fractional shares before the ex-dividend date, you will not receive that dividend.

Selling fractional shares and tax reporting

You can sell fractional shares the same way you sell whole shares — open the position, tap "Sell," enter the dollar amount or number of shares you want to sell, and submit the order. Robinhood will sell your fractional shares at the current market price during regular trading hours.

For tax purposes, fractional shares are treated like any other shares. When you sell, you owe capital gains tax on the profit (or can claim a loss). Robinhood reports your transactions on Form 8949 and Schedule D, which you include with your tax return. The cost basis (the price you paid) is calculated based on the actual dollar amount you invested, divided by the number of fractional shares you received.

Keep records of your fractional share purchases and sales, including the date, number of shares, and price. Robinhood provides a transaction history in the app and on its website, which you can read for your records.

Fractional shares and trading halts

If a stock is halted (trading is temporarily stopped by the SEC or exchange), you cannot buy or sell fractional shares of that stock until trading resumes. Robinhood will display a notice on the stock's page explaining why trading is halted and when it may resume. Halts typically last from a few minutes to a few hours, though they can last longer in serious cases.

During a halt, any pending orders — including fractional share orders — are cancelled. You will need to place a new order once trading resumes. Robinhood does not automatically resubmit cancelled orders.

Costs and fees for fractional shares

Robinhood charges no commission or fractional share fees. You pay only the bid-ask spread, which is the difference between the price someone is willing to pay (bid) and the price someone is asking (ask). This spread exists for all stocks and ETFs, whether you are buying whole or fractional shares, and varies depending on how actively the security is traded.

For highly liquid stocks like Apple or Tesla, the spread is usually very small — often just a penny or two per share. For less-traded stocks, the spread can be wider, meaning you pay more to buy and receive less when you sell. Robinhood does not control the spread; it is set by the market.

Frequently Asked Questions

Can I set up automatic investments in fractional shares?

Yes. Robinhood's recurring investment feature lets you set up automatic purchases of fractional shares on a weekly or monthly schedule. Go to the stock or ETF, tap the menu icon, and select "Recurring Investment." Choose your dollar amount and frequency, and Robinhood will buy fractional shares on your chosen day each week or month.

What happens to my fractional shares if Robinhood goes out of business?

Your fractional shares are held in your brokerage account and are protected by the Securities Investor Protection Corporation (SIPC) up to $500,000 per account. SIPC protection covers the value of your securities, including fractional shares. This protection is separate from Robinhood's financial health and applies even if the company fails.

Can I buy fractional shares during pre-market or after-hours trading?

No. Fractional shares trade only during regular market hours (9:30 a.m. to 4 p.m. Eastern Time). Robinhood does not offer fractional share trading during pre-market (4 a.m. to 9:30 a.m.) or after-hours (4 p.m. to 8 p.m.) sessions. If you place an order outside regular hours, it will execute when the market opens.

Do fractional shares count toward the pattern day trader rule?

Yes. Fractional shares are treated like whole shares for the pattern day trader rule. If you make four or more day trades (buying and selling the same security on the same day) within five business days, you are flagged as a pattern day trader and must maintain a $25,000 minimum account balance. This rule applies regardless of whether you trade whole or fractional shares.

Can I use fractional shares in a retirement account?

Yes. Fractional shares work in Robinhood IRAs, Roth IRAs, and other retirement accounts offered by Robinhood. The same rules explore — you enter a dollar amount, and Robinhood buys fractional shares. Dividends and capital gains in retirement accounts are not taxed until you withdraw the money (or never, in the case of Roth accounts).