IBKR actually allows me to buy fractional shares! Why did no one ever mentioned it? Isn't that a good, attractive method for people who want to do their own monthly dca etf/stock picking?

Prior to buying my first stock on IBKR, I had NO IDEA AT ALL that IBKR allowed us to buy fractional shares as it was never mentioned anywhere on forums/seedy. I realised they actually do allow me to buy fractional shares and this makes it even more attractive for me who's using a diy monthly dca approach so every single cent goes to buying the stock rather than rounding up/down. Because of this I'm able to buy more amazon stocks over the past 2 months, not significant, but I'm enjoying it!

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Discussion (4)

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KxR

23 Jul 2020

It depends, you should look in ETFs in case you can't find a specific category. You can literally start with 1$ as opposed to index funds. For individual stocks though, I don't think so. Overall you are better off just going for the diversification option if its a long-term investment.

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Zachary Teo

21 Jul 2020

Art Director at Ad Agency

Hey Anon! To answer the first part, I would think it is because IBKR official set up is still very new in Singapore. Seedly does not list them up in Reviews until a few weeks back. The discussion in the community is also very small.

Buying fraction shares is indeed a good method for people who wish to DCA especially for higher value stocks like the FAANG. However, do take into consideration that for every transaction you make, there will be a comission fee.

In addition, you may also wish to take note of their monthly inactive fee of USD10 if your account doesn't hit USD100K.

Hope this helps! And welcome to the IB community!

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