What is fractional share investing?

Buying parts of stocks - commonly known as fractional shares - is a way to invest in popular stocks without being dependent on matching the share price. The purchase is based on a dollar amount, so investors can buy in quantities of $1 to own a portion of the stock, vs. buying shares they may feel are too expensive.

Is there a downside to fractional shares?

Sometimes, a brokerage will charge every time an investor buys or sells a stock. Whether they were buying a quarter of one share or 500 shares of a stock, these fees can still be charged. Luckily, SoFi Stock Bits allows for the purchase of fractional shares at no additional cost to the investor.

How do you buy fractional shares?

Using an online brokerage offering like SoFi Stock Bits can be a simple way to get started choosing your own stocks for dollar based investing. In fact, you can start investing with as little as $1.

Are fractional shares hard to sell?

With SoFi, buying and selling fractional shares are treated the same as traditional stock trading, without added barriers just for owning a portion of a stock.

Can you day trade fractional shares?

Fractional share trading is regulated by the same standards as day trading stocks. Investors should maintain a $25,000 minimum balance to execute more than four day trades in a five-business-day window or they can be marked as a pattern day trader.

How do I sell Stock Bits on SoFi?

Within your stock holding, simply choose the sell button at the bottom and choose the amount of trade you want to execute. You can sell any amount you’d like, but the smallest denomination we support is up to 5 decimal places.

Fractional Share Investing | SoFi Stock Bits

Investment Products:

ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE

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This is not an offer, or solicitation of any offer to buy or sell any security, investment or other product.

Investing in securities involves risks, and there is always the potential of losing money when you invest in securities. Past performance, historical returns, future projections, and statistical forecasts are no guarantee of future returns or future performance. The firm reserves the right to monitor and retain all incoming and outgoing communications as permitted by applicable law.

*Terms and conditions apply. To receive the offer, you must: open a new SoFi Securities LLC active brokerage account through the signup link you were given, and fund your brokerage account in one deposit. The offer only applies to new active brokerage accounts. The offer is limited to one per person. The offer expires on February 29th, 2020. Once conditions are met and account is opened, you will receive $25 which will be paid in a fractional share (or fractional shares) in a publicly traded company. The number of fractional shares delivered for the bonus will be determined based on the execution price at which SoFi Securities acquires the shares. Please note, given the Welcome Bonus will be paid in the form of a marketable security, the dollar value of the Bonus will change as the price of that security changes, which will result in a change in value of the Bonus provided. SoFi reserves the right to change the form of consideration used to pay the Welcome Bonus at any time without advance notice. Bonus amounts of $600 or greater in a single calendar year may be reported to the Internal Revenue Service (IRS) as miscellaneous income to the recipient on Form 1099-MISC in the year received by applicable law. Recipient is responsible for any applicable federal, state or local taxes associated with receiving the bonus offer, consult your tax advisor to determine applicable tax consequences. SoFi reserves the right to change or terminate the offer at any time or without notice.

Please note, we fill Stock Bits (fractional share) orders only once a day around 3:30 pm ET, on trading days. Orders placed after the buy window will not be completed same day. Stock price and share proportion may change based on the time of your order in relation to the daily fill window. You may cancel Stock Bits orders until a trading window is opened. SoFi may cancel orders or open an off-schedule trading window at any time, without notice.

SoFi Invest refers to the three investment and trading platforms operated by Social Finance, Inc. and its affiliates (described below). Individual customer accounts may be subject to the terms applicable to one or more of the platforms below.

1) Automated Investing and advisory services are provided by SoFi Wealth LLC, an SEC-Registered Investment Adviser (“Sofi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC.

2) Active Investing and brokerage services are provided by SoFi Securities LLC, Member FINRA/SIPC, (“Sofi Securities). Clearing and custody of all securities are provided by APEX Clearing Corporation.

3) Cryptocurrency is offered by SoFi Digital Assets, LLC, a FinCEN registered Money Service Business.

For additional disclosures related to the SoFi Invest platforms described above, including state licensure of Sofi Digital Assets, LLC, please visit legal.

Neither the Investment Advisor Representatives of SoFi Wealth, nor the Registered Representatives of SoFi Securities are compensated for the sale of any product or service sold through any SoFi Invest platform. Information related to lending products contained herein should not be construed as an offer or pre-qualification for any loan product offered by SoFi Lending Corp and/or its affiliates.

Stock Bits is a brand name of the fractional trading program offered by SoFi Securities LLC. When making a fractional trade, you are granting SoFi Securities discretion to determine the time and price of the trade. Fractional trades will be executed in our next trading window, which may be several hours or days after placing an order. The execution price may be higher or lower than it was at the time the order was placed.

If you invest in Exchange Traded Funds (ETFs) through SoFi Invest (either by buying them yourself or via investing in SoFi Invest’s automated investments, formerly SoFi Wealth), these funds will have their own management fees. These fees are not paid directly by you, but rather by the fund itself. these fees do reduce the fund’s returns.. Check out each fund’s prospectus for details. SoFi Invest does not receive sales commissions, 12b-1 fees, or other fees from ETFs for investing such funds on behalf of advisory clients, though if SoFi Invest creates its own funds, it could earn management fees there.

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