Investing in high-priced US stocks no longer requires thousands of dollars. Fractional trading makes global markets more accessible, starting from as little as US$1.
For many investors in Singapore, US markets are a natural place to look for opportunities. Companies like Apple, Amazon, Microsoft, and Tesla are household names, with products and services used daily across the world.
But buying into these companies has traditionally been expensive and high-priced stocks can feel out of reach. If one share of Amazon trades at US$159 (S$213) and Tesla at US$250, that’s a significant upfront cost. For stocks like Alphabet (Google’s parent) or Berkshire Hathaway, a single share can run into the thousands of dollars.
This price barrier has often discouraged new investors from gaining exposure to leading US companies. That’s where fractional trading comes in.
Table of Contents
- What is fractional trading?
- Why fractional trading matters
- Common questions about fractional trading
- How fractional trading is changing investing in Singapore
- Where to access fractional trading in Singapore
- Fractional trading with Syfe
- Conclusion
What is fractional trading?
Fractional trading allows investors to buy less than one whole share of a company or exchange-traded fund (ETF). Instead of needing the full share price, you can invest any dollar amount you choose.
For example:
- If a stock costs US$100 and you invest US$10, you own 0.1 shares.
- If you invest US$1,000 in a stock priced at US$2,000, you own 0.5 shares.
Fractional trading effectively “slices” a share into smaller parts, making expensive stocks more affordable and accessible to everyday investors.
Currently, fractional trading is most widely offered for US-listed stocks and ETFs, giving investors exposure to some of the world’s biggest companies and funds.
Why fractional trading matters
1. Lower barriers to entry
The biggest advantage is accessibility. Instead of needing thousands of dollars to buy a single share, you can start investing with whatever amount you’re comfortable with — even as little as US$1.
2. Easier diversification
Diversification is one of the golden rules of investing. By spreading your money across different companies, industries, and markets, you reduce the risk of being overly dependent on a single stock.
Fractional trading makes this easier. For example, with US$1,000 you could:
- Put US$200 into Apple
- US$200 into Amazon
- US$200 into Microsoft
- US$200 into Tesla
- US$200 into an ETF like the S&P 500
Instead of owning only one or two full shares, you now have a diversified mini-portfolio.
3. Dollar-cost averaging made simple
Dollar-cost averaging (DCA) is a long-term strategy where you invest a fixed amount at regular intervals, regardless of market conditions. Over time, this helps smooth out volatility and reduce the impact of market timing.
Fractional trading makes DCA easy. Even if a stock’s price is higher than your monthly budget, you can still invest consistently in it by buying fractions.
4. Maximising every dollar
Traditional brokers often leave investors with “leftover cash” that isn’t enough to buy another full share. With fractional trading, every dollar is put to work — no idle money sitting on the sidelines.
Common questions about fractional trading
Do fractional shares pay dividends?
Yes. If the company you invest in pays dividends, you’ll receive payouts in proportion to the fraction you own. For example, if you hold 0.25 shares and the dividend is US$1 per share, you’ll get US$0.25.
Can fractional shares be sold?
Yes. Fractional shares can be sold the same way as whole shares. If you own 0.5 shares of a company and the price doubles, your holdings double in value as well.
Is fractional trading riskier than regular trading?
Some investors worry that fractional trading may affect their dividends or returns. That’s not the case. If you own fractional shares of a company that pays dividends, you’ll still be entitled to the dividend payout, and your dividends will be proportional to the amount of the share you own.
Let’s say you own 25% of a share and the declared dividend is $1 per share. Your dividend payout will simply be $0.25.
There are also no restrictions to selling your fractional shares. You can sell them just like any other listed stock. If you own 25% of a share and the stock price jumps from $2 to $4, you’ll receive equivalent proceeds of $1 when you sell your stock.
Fractional shares carry the same risks as whole shares—they rise and fall with the company’s stock price. The main difference is accessibility, not risk.
How fractional trading is changing investing in Singapore
Fractional trading has gained popularity globally because it democratises investing. For Singapore-based investors, it means:
- You don’t need to save thousands before getting started.
- You can invest in globally recognised companies alongside ETFs that track broad indices.
- Young investors, in particular, can start small and learn by doing, without needing a large upfront commitment.
In short, fractional trading lowers the barriers and gives more people the chance to build wealth through the stock market.
Where to access fractional trading in Singapore
Not every brokerage offers fractional trading, but more platforms are beginning to include it. Typically, it is available for US-listed stocks and ETFs, since that’s where demand is highest.
When choosing a platform, consider:
- Minimum investment size (some allow as little as US$1)
- Fees and commissions (fractional trading should not come with extra costs)
- Ease of use (mobile apps vs. desktop platforms)
- Additional features such as recurring investment plans or free trades per month
Start fractional trading with Syfe Brokerage
Syfe Brokerage offers fractional trading on US-listed stocks and ETFs from just US$1. That means you can start investing in companies like Amazon, Apple, or Tesla without paying the full share price. From just US$1, you can buy almost any US stock or ETF you want.
Syfe Brokerage also doesn’t charge additional fees for fractional trading. Whether you choose to buy shares in whole numbers or in fractions, you get to enjoy free trades every month.
Once you’ve signed up for a Syfe Brokerage account, simply follow the steps below to make your first fractional trade.
- Download the Syfe mobile app and sign up for a Syfe Brokerage account
- Add funds to your Syfe Brokerage account using PayNow, FAST/GIRO, or wire transfer
- Determine what US stock or ETF you want to invest in, and how much money you want to invest
- Tap “Buy” and select “Buy in dollars (Market)” as your order type
- Enter the amount you want to invest
- Slide “Buy” to complete your trade
For those who prefer a more hands-off approach, Syfe Core portfolios provide globally diversified, professionally managed solutions that save you the hassle of choosing and monitoring individual stocks.
Learn more about Syfe Brokerage for fractional trading, or explore Syfe Core portfolios if you prefer an automated approach to investing.
The takeaway
Fractional trading has opened doors for everyday investors, making global markets more accessible than ever. From lowering the cost of entry to enabling diversification and consistent investing, it’s a powerful tool for anyone looking to grow wealth over the long term.
Whether you choose to build your own portfolio of fractional shares or let a managed solution do the work for you, the key is to start early, stay consistent, and keep your money invested for the long run.
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