In the realm of investing, fractional shares have opened up new avenues for investors by allowing them to own a portion of a share in leading companies. This method of investing is particularly useful for those who want to invest in high-priced stocks without committing to purchasing a full share. If you’re using Tiger Brokers, one of the leading platforms for trading fractional shares, understanding how to make these purchases through the Tiger Trade app is crucial. Here’s a step-by-step guide to buying fractional shares with the help of Tiger Trade version 8.0.5 or above.
Step 1: Update or Download Tiger Trade App
Ensure that you have the latest version of the Tiger Trade app, which is version 8.0.5 or higher. This version supports trading in fractional shares, and it’s essential to have it installed on your device to access this feature.
Step 2: Check Instrument Eligibility
Before you can purchase fractional shares, you need to check whether the specific stock or ETF supports this type of trading. To do this:
– Open the Tiger Trade app and navigate to the contract detail page of the instrument you’re interested in.
– Look at the upper right corner of the page to see if there’s an indication that the instrument supports fractional shares.
Step 3: Placing an Order
Once you have confirmed that fractional shares are available for the chosen instrument, you can proceed to place an order. Tiger Trade offers two methods to buy fractional shares:
1. Order by Quantity:
– Enter the quantity of the share you wish to purchase in decimal form using the numeric keypad. The minimum quantity you can buy is 0.00001 shares.
– Ensure that the total order amount meets the minimum requirement of USD 1.
2. Order by Amount:
– Alternatively, you can choose to place an order by specifying the dollar amount you want to invest. The minimum order amount is also USD 1.
– Enter the amount, and the app will calculate the corresponding fraction of the share to be purchased based on the current market price.
Step 4: Understanding Order Execution
After placing your order, it’s important to understand that there might be a small difference between the amount you ordered and the amount executed. This discrepancy can happen due to market volatility affecting the share price at the time of order execution. Tiger Trade ensures that this gap is minimized and that transactions are as close to your specified amount as possible.
Conclusion
Purchasing fractional shares through Tiger Trade is a straightforward process that allows investors to engage with the stock market flexibly. By enabling investments starting from as low as USD 1, Tiger Brokers ensures that more people can diversify their investment portfolios, even with limited funds.
This guide provides a comprehensive overview of how to purchase fractional shares using the Tiger Trade app, facilitating a smoother and more informed trading experience. Remember, this blog does not provide investment advice but aims to educate on the procedural aspects of buying fractional shares on Tiger Trade.