How to Buy Fractional Shares with Fidelity: A Step-by-Step Guide Using the Mobile App

Investing in the stock market has become increasingly accessible thanks to advancements in technology. One of the modern features that make investing easier is the option to buy fractional shares. This feature is particularly advantageous for beginners and those looking to diversify their portfolios without needing significant capital. If you’re looking to buy fractional shares using Fidelity’s mobile app, you’re in the right place. Here’s a step-by-step guide on how to do it.

Why Choose Fractional Shares?

Fractional shares allow you to invest in high-priced stocks without needing to purchase a full share. For example, if a stock is priced at $1,000, you can invest as little as $10 to buy 0.01 of a share. This approach facilitates:

• Easier Diversification: Invest in a variety of stocks across different sectors, even with a smaller budget.
• Lower Entry Point: Start investing with minimal capital, making the stock market more accessible for newcomers.
• Flexibility: Adjust your investments according to your financial situation without committing to a full share.

Getting Started: Download and Set Up the Fidelity Mobile App

1. Download the App:

   • Visit the App Store (iOS) or Google Play Store (Android) and search for "Fidelity Investments."
   • Download the app and install it on your device.

2. Create or Log into Your Account:

   • Open the app and log in to your Fidelity account if you already have one.
   • If you’re a new user, you’ll need to create an account. Follow the on-screen prompts, providing the necessary personal and financial information.
3. Fund Your Account:
   • Before you can buy fractional shares, ensure you have sufficient funds in your Fidelity account. You can transfer money from your bank account or fund your account using other methods provided by Fidelity.

Step-by-Step Guide to Buy Fractional Shares

Step 1: Navigate to the Search Bar

• Open the Fidelity mobile app and locate the search bar at the top of the screen.
• Enter the ticker symbol or name of the stock you wish to buy.

Step 2: Select the Stock

• From the search results, tap on the stock you are interested in.
• This will bring up detailed information about the stock, including its current price, market performance, and other relevant data.

Step 3: Choose the Fractional Shares Option

• On the stock’s information page, look for the option to buy shares.
• Select "Buy" and you should see an option that states “Buy Fractional Shares” or “Invest Any Amount”.

Step 4: Enter Your Investment Amount

• Input the dollar amount you wish to invest. The app will automatically calculate how many fractional shares you can purchase based on the current stock price.
• Ensure that the amount you enter is within the available funds in your account.

Step 5: Review Your Order

• Before finalizing your purchase, review the order details.
• Check the estimated number of fractional shares you will receive and any associated fees.

Step 6: Place Your Order

• Once you’re satisfied with the details, tap on “Preview Order” to see a summary of your transaction.
• If everything looks good, confirm your order by tapping “Submit” or “Place Order.”

Step 7: Monitor Your Investment

• After your purchase is complete, you can view your fractional shares in the “Positions” section of the app.
• Regularly check the performance of your investments and adjust your portfolio as needed.

Tips for Investing in Fractional Shares

• Do Your Research: Even though fractional shares make investing more accessible, it’s essential to research the companies you are investing in. Understand their financial health and market position.

• Diversify Your Portfolio: Spread your investments across different sectors to minimize risk.

• Invest for the Long Term: While it’s possible to trade frequently, consider a long-term investment strategy to maximize returns.

Conclusion

Buying fractional shares through the Fidelity mobile app is a straightforward and user-friendly process, allowing you to start your investment journey even on a limited budget. By following this guide, you can easily diversify your portfolio and take advantage of the stock market’s potential. Happy investing!

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