Disclaimer: The content provided on this website is for informational and educational purposes only and does not constitute financial, investment, or tax advice. Investing in financial securities involves risk, including the possible loss of principal. Past performance is no guarantee of future results. All figures, platform features, and fee structures cited reflect current market data as of 2026 and are subject to change.
When it comes to fractional share investing, not all brokerages are created equal. While the concept of buying a “slice” of a company is simple, the execution, rules, and user experience vary wildly from platform to platform.
If you are a beginner looking to build a diversified portfolio with small amounts of capital, you have likely narrowed your choices down to two industry giants: Webull and Fidelity Investments.
At first glance, they might seem incredibly different. Fidelity is a legacy behemoth, managing trillions of dollars and offering everything from wealth management to 401(k) administration. Webull is a sleek, mobile-first fintech startup built for active traders. However, both have aggressively marketed their fractional share features to capture the next generation of investors.
In this comprehensive guide, we will compare Webull’s fractional trading against Fidelity’s “Stocks by the Slice” program, breaking down the minimum requirements, eligible assets, user experience, and hidden limitations so you can choose the right platform for your money.
The Bottom Line (TL;DR)
If you just want the quick verdict:
Choose Fidelity if: You want a true “all-in-one” financial hub. Fidelity allows you to buy fractional shares of almost any US stock or ETF for just $1.00. It also offers automated dividend reinvestment (DRIP), high-yield cash sweep accounts, and customer support that you can actually call on the phone. It is the best choice for long-term, passive investors.
Choose Webull if: You want advanced charting tools, early market access, and a modern mobile app. Webull requires a $5.00 minimum for fractional shares and offers an incredibly powerful trading interface. However, its lack of automated fractional dividend reinvestment makes it slightly less ideal for passive “set-it-and-forget-it” investors.
1. Minimum Investment Requirements
The primary reason to use fractional shares is to lower the barrier to entry. Both platforms excel here, but one is mathematically more accessible.
Fidelity: The $1.00 Standard
Fidelity’s fractional share program, branded as “Stocks by the Slice,” allows you to invest with as little as $1.00. Furthermore, the minimum fractional quantity you can purchase is just 0.001 shares. This makes it incredibly easy to spread a $10 deposit across 10 different blue-chip companies.
Webull: The $5.00 Standard
Webull requires a slightly higher minimum of $5.00 for any fractional trade. The minimum fractional quantity is 0.00001 shares. While $5 is still extremely accessible, if you are working with very tight micro-deposits (e.g., trying to invest $20 a week across 10 different stocks), the $5 minimum will force you to consolidate your picks.
Winner: Fidelity. A $1 minimum offers unmatched flexibility.
2. Eligible Assets: What Can You Actually Buy?
Not every stock on the market is eligible for fractional trading. Brokerages have to manage the risk and liquidity of holding the remaining “pieces” of the shares you don’t buy.
Fidelity’s Eligibility
Fidelity offers an enormous universe of eligible assets. You can buy fractional shares of more than 7,000 U.S. stocks and ETFs. This includes almost every company listed on the New York Stock Exchange (NYSE) and the Nasdaq, including many mid-cap and small-cap companies.
Webull’s Eligibility
Webull’s fractional universe is slightly smaller, focusing primarily on highly liquid U.S. stocks and ETFs. They require a company to have a significant market capitalization and daily trading volume to qualify. While you won’t have trouble buying fractions of Apple, Tesla, or Vanguard ETFs on Webull, you might find that some smaller, niche companies are locked to whole-share purchases. (You can identify eligible stocks on Webull by looking for the green diamond icon).
Winner: Fidelity. Their massive scale allows them to support fractional trading on a wider variety of assets.
3. The User Experience (Mobile vs. Desktop)
This is where the two platforms diverge the most. They were built for entirely different types of investors.
The Webull Experience
Webull is a technology company first. Its mobile app is a masterpiece of design, offering institutional-grade charting, technical indicators (MACD, RSI, Bollinger Bands), Level 2 market data, and real-time options flow.
When you place a fractional order on Webull, the interface is seamless. You simply toggle the input from “Shares” to “USD,” type in your dollar amount, and hit buy. If you love looking at data and analyzing trends before you buy your fractional slice, Webull’s interface is miles ahead of the competition.
The Fidelity Experience
Fidelity’s mobile app is highly functional and secure, but it feels distinctly like a traditional bank. The charting tools are basic, and the interface is heavily text-based.
Placing a fractional trade on Fidelity is easy (you select “Dollars” instead of “Shares”), but navigating the app to find fundamental research, read earnings reports, or check complex charts is clunky compared to Webull.
Winner: Webull. For mobile-first investors who want modern UI and deep analytics, Webull is superior.
4. Dividend Reinvestment (DRIP)
If you are buying fractional shares of ETFs or dividend-paying stocks, you want your dividends to automatically buy more fractional shares of those same assets, creating a snowball effect of compound interest. This is known as a Dividend Reinvestment Plan (DRIP).
Fidelity’s DRIP
Fidelity offers full, automated DRIP for fractional shares. When Apple pays you a $0.40 dividend on your fractional holding, Fidelity immediately reinvests that $0.40 back into Apple, buying you another tiny fraction. You never have to think about it.
Webull’s DRIP Limitations
Historically, Webull has struggled with DRIP. While they have made updates, Webull generally pays dividends as cash directly into your buying power. Because Webull has a $5 minimum for fractional trades, if a stock pays you a $2.00 dividend, you cannot immediately reinvest it. You have to wait until you accumulate $5.00 in cash to manually place a new fractional buy order.
Winner: Fidelity. The lack of true, micro-fractional DRIP on Webull is a significant drawback for long-term investors.
5. Account Types Available
Fractional shares are great, but where you hold them matters for tax purposes.
Webull
Webull offers Individual Brokerage Accounts, Traditional IRAs, and Roth IRAs. This covers the basics for 90% of retail investors.
Fidelity
Fidelity offers an overwhelming number of account types. In addition to standard taxable accounts and IRAs, they offer:
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Custodial Accounts (UTMA/UGMA for minors)
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Fidelity Youth Accounts (allowing teens to trade fractional shares)
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Health Savings Accounts (HSAs)
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Solo 401(k)s
Winner: Fidelity. If you want to open a fractional account for your teenager or utilize an HSA, Fidelity is the only option between the two.
6. Uninvested Cash and Yield
If you deposit $100 but only buy $50 worth of fractional shares, what happens to the remaining $50 sitting in your account?
Fidelity’s Core Position
When you deposit cash into Fidelity, it automatically goes into a “Core Position,” which is essentially a money market fund (often SPAXX). In 2026, this cash earns a highly competitive yield (often near 5%, depending on Federal Reserve rates). You are earning significant interest on your uninvested cash without doing a thing.
Webull’s Cash Management
Webull also offers a competitive yield on uninvested cash, but you must manually opt-in to their Cash Management program. It is not always the default, and the rates, while high, are promotional and subject to change based on account minimums and direct deposit setups.
Winner: Fidelity. The automatic, default sweep into a high-yield money market fund is effortless.
7. Final Verdict: Which Should You Choose?
Both Webull and Fidelity have eliminated the barriers to entry for retail investors by offering zero-commission fractional trading. However, they serve two distinct mentalities.
If you consider yourself an Active Investor—you enjoy tracking charts, reading Level 2 data, trading during extended hours (4:00 AM to 8:00 PM), and want a sleek, dark-mode mobile interface—Webull is the better platform. The $5 minimum is easy to meet, and the data provided is unparalleled for a free app.
If you consider yourself a Passive Investor—you want to buy $10 of an S&P 500 ETF every week, automatically reinvest your dividends, earn high interest on uninvested cash, and perhaps open a custodial account for your children—Fidelity is the undisputed champion. The $1 minimum and automatic DRIP make it the perfect vehicle for long-term wealth accumulation.