I’ve only been using the Robinhood investment app for 2 weeks, but I’ve already seen a $5 increase on my $222.29 in free stocks and $11.06 in paid investments. I’ve already recuperated almost half of what I spent!
In my post titled Micro Investing (Part 2: Robinhood App Basics), I walked through my experience in downloading the app, claiming free stocks, and making my first micro investments. This morning I received a notification from Robinhood announcing $1 investments in companies like Amazon, Apple, and Disney through something called fractional shares.
Fractional Shares
A fractional share is exactly what it sounds like—a part of a share, rather than a whole, pricier share.
The idea is that instead of putting all your investment eggs in one basket, you tell Robinhood how much you want to invest and that amount is broken up into smaller amounts (as low as even $1) and invested into a variety of stocks. The chances of making a profit are statistically greater when there is more than just one investment target to hit.
It sounds like Robinhood will be launching the ability to buy fractional shares in early 2020. For now, you can sign up via the app to be notified when early access is made available.
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