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Example I wan to buy the shares each month at 200$ DCA but I don't think the shares I am buying is able to split into 0.5 shares. How do I check if that stock is able to buy at 0.5 lot? Or is there any DCA platform out there for US stocks?
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Hariz Arthur Maloy
25 May 2020
Independent Financial Advisor at Promiseland Independent
Hi Justin, buying monthly is not Dollar Cost Averaging. It's just a regular investment. And you can't properly DCA individual securities as you can't buy fractional shares.
But semantics aside, instead of buying monthly, consider buying once every 3-6 months. As long as your trading cost is managed as well, and you can enter the market, it won't be an issue as long as you're still buying at a desired price.
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The broker Interactive Brokers allows u to buy fractional shares which means u can buy a fraction of that share instead of 1 full share.
For example, if AMZN is $2000 and u only have $200 you can buy 0.1 shares of AMZN instead of having to save up to $2000 to buy 1 share.
u can DCA into that $500 stock depositing with $300 monthly using Interactive Brokers.βββ