How to Buy Fractional Shares of US Stocks and What Fees Apply, Step-by-Step

When will you start fractional buying?

Fractional buying is a service that lets you purchase foreign stocks in fractional units even when one share is expensive.

Beginners should check their account first.

Retail investor:

"One share is too expensive, I cannot buy..."

If you already have an account, most brokers let you start immediately.

What is fractional buying?

Fractional buying means purchasing a smaller unit than one full share.

You can now buy by amount instead of by whole shares.

Where do you set it up?

Find the settings menu in your online broker app.

Account types may include general and foreign-stock-only accounts.

Menu names and procedures differ by broker, so check the app guide.

How do orders and executions work?

Generally, select a 'amount-specified order'.

If you enter Korean won, the broker converts it to foreign currency and executes in fractional shares.

Execution time is based on market hours.

What fee components exist?

Forex fee → the cost when converting won to foreign currency.

Trading fee → the brokerage fee charged for the trade.

Custody or management fees may apply, so check the terms.

Taxes → capital gains tax and dividend income tax may be levied.

Rates and thresholds change frequently, so confirm the latest rules with your broker or the tax authority.

Frequently asked practical tips

You can get preferential forex rates by converting a larger amount at once.

But fractional buying can generate many small trades, so check the fee structure carefully.

Dividends may be paid on a per-share basis, so dividend handling can differ when holding fractional shares.

So, what to do first

→ 1. Check whether your broker app offers fractional buying and review the terms.

→ 2. Compare forex fees and trading fees to estimate expected costs.

→ 3. Place a small test order to verify execution and dividend handling.

Please use this as a reference only.

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※ This article is for informational purposes and is not investment advice.

※ Investment decisions and responsibility rest with the investor.

※ Figures are as of the time of writing and may change.

This article is for informational purposes and is not investment advice.