Fractional Shares in Canada: How to Invest Any Amount
Fractional Shares: Invest Any Amount in Canada
No more buying whole shares. No more leftover cash. Invest exactly $50, $100, or any amount—down to the penny.
Start Investing with Just $1
Wealthsimple offers true fractional shares in Canada. Invest any amount, zero commissions. Plus get $25 free.
Claim Your $25 BonusWhat Are Fractional Shares?
Fractional shares let you buy a portion of a stock or ETF rather than a whole share. If XEQT costs $28 per share but you only have $50, fractional shares let you buy exactly $50 worth (about 1.79 shares).
Before fractional shares, investing looked like this:
- You want to invest $100
- XEQT costs $28/share
- You can buy 3 shares = $84
- $16 sits in cash, doing nothing
With fractional shares:
- You want to invest $100
- You buy exactly $100 worth of XEQT
- $0 leftover. Every dollar invested.
Why This Matters
Over 30 years, that leftover cash adds up. If you're investing $100/week and leaving $10-15 uninvested each time, you could miss out on thousands in compound growth. Fractional shares solve this completely.
The Old Way vs. The New Way
Without Fractional Shares
Your budget: $200/month
XEQT price: $28.50/share
Shares you can buy: 7 whole shares
Actual investment: $199.50
Cash left over: $0.50
$6/year sitting idle in your account
With Fractional Shares
Your budget: $200/month
XEQT price: $28.50/share
Shares you can buy: 7.0175 shares
Actual investment: $200.00
Cash left over: $0.00
Every dollar working for you
Why Fractional Shares Matter for Canadians
Invest Any Amount
Have $47.83 to invest? Invest exactly $47.83. No minimum purchase requirements. No leftover cash sitting around earning nothing.
Perfect for Dollar Cost Averaging
Set up automatic $100/week investments. Every dollar buys XEQT. No manual calculations. No rounding down.
Access Any Stock or ETF
Want to own Amazon at $180/share but only have $50? Buy 0.28 shares. Fractional shares democratize investing.
Maximize Your TFSA
Hit your exact TFSA contribution limit. Invest $7,000.00, not $6,996.50. Make every dollar of tax-free room count.
Ready to Invest Every Dollar?
Open a Wealthsimple account and start investing any amount—no minimums, no leftover cash.
Get Started + $25 BonusWhich Canadian Brokers Offer Fractional Shares?
Here’s the truth: most Canadian brokers don’t offer fractional shares. This is a major differentiator for Wealthsimple.
| Broker | Fractional Shares | Commission | Notes |
|---|---|---|---|
| Wealthsimple | Yes | $0 | True fractional shares for all stocks/ETFs |
| Questrade | No | $0 for ETFs | Must buy whole shares only |
| TD Direct Investing | No | $9.99/trade | Traditional full-service broker |
| BMO InvestorLine | No | $9.95/trade | Must buy whole shares |
| RBC Direct Investing | No | $9.95/trade | No fractional share support |
| CIBC Investor’s Edge | No | $6.95/trade | No fractional share support |
| Scotia iTRADE | No | $9.99/trade | No fractional share support |
| Interactive Brokers | Yes | $1-2/trade | Complex platform, not beginner-friendly |
The Clear Winner
For Canadian investors who want fractional shares with zero commissions and a simple interface, Wealthsimple is the only practical choice. Interactive Brokers offers fractional shares but is designed for active traders, not buy-and-hold investors.
How Fractional Shares Work on Wealthsimple
Simple 3-Step Process
- Enter your dollar amount — Type the exact amount you want to invest ($50, $127.33, whatever)
- Wealthsimple calculates shares — The app shows you exactly how many shares you'll receive
- Buy instantly — Your order executes and you own fractional shares of XEQT
Example: Investing $150 in XEQT
XEQT current price: $28.42
Your investment: $150.00
Shares received: 5.2779 shares
Commission: $0
Result: You own exactly $150 worth of XEQT. When XEQT goes up 10%, your investment is worth $165—all 5.2779 shares appreciate equally.
Fractional Shares for Automatic Investing
Fractional shares shine when combined with automatic investing:
- Set up automatic deposits — $100 every Friday from your bank
- Enable auto-invest — Tell Wealthsimple to automatically buy XEQT
- Fractional shares handle the math — Exactly $100 buys XEQT every week
No more checking prices to see how many shares to buy. No more leftover cash building up. Your entire deposit goes to work immediately.
Automate Your Investing
Set up automatic weekly deposits with fractional shares. Every dollar invested, zero effort required.
Claim Your $25 Bonus →Join thousands of Canadians investing on autopilot
Do Fractional Shares Pay Dividends?
Yes! You receive dividends proportional to your fractional holdings.
If XEQT pays a $0.20 dividend per share and you own 5.5 shares:
- Full shares (5): $1.00 in dividends
- Fractional share (0.5): $0.10 in dividends
- Total: $1.10
Your fractional shares are treated exactly like whole shares for dividends. This is important for DRIP (dividend reinvestment) strategies.
Common Concerns About Fractional Shares
Frequently Asked Questions
Are fractional shares "real" shares?
Yes. You're a beneficial owner of the underlying security. Your fractional shares appreciate, pay dividends, and can be sold just like whole shares. The main difference is you can't transfer fractional shares to another broker—they'd need to be sold first.
What happens if I want to transfer my account?
Whole shares transfer to a new broker normally. Fractional shares would be sold during the transfer since most brokers can't receive them. This is a minor inconvenience but rarely matters for long-term investors.
Can I sell fractional shares anytime?
Yes. You can sell any portion of your holdings—fractional or whole. Sell 0.5 shares of XEQT? No problem. Wealthsimple processes it instantly during market hours.
Is there a minimum investment amount?
Wealthsimple's minimum is just $1. You can literally invest a dollar if you want. This makes it perfect for beginners testing the waters or anyone doing micro-investing.
Do fractional shares work in registered accounts?
Yes. Fractional shares work identically in TFSAs, RRSPs, FHSAs, and non-registered accounts. Buy fractional XEQT in your TFSA and your gains are still 100% tax-free.
How does Wealthsimple make money if there's no commission?
Wealthsimple makes money from premium subscriptions, currency exchange on US stocks (avoided with XEQT since it's CAD), and interest on uninvested cash. Fractional shares don't cost them extra to offer.
Why don't other Canadian brokers offer fractional shares?
Legacy systems. Traditional brokers built their platforms decades ago when whole shares were the only option. Upgrading to support fractional shares requires significant technical investment. Wealthsimple built their platform from scratch with modern technology.
The Bottom Line: Fractional Shares Are a Game-Changer
For Canadian investors, fractional shares solve real problems:
- No more leftover cash sitting uninvested
- Perfect for DCA with fixed dollar amounts
- Maximize registered accounts with precise contributions
- Start with any amount—even $5 or $10
- Buy expensive stocks without needing thousands of dollars
And in Canada, Wealthsimple is the only beginner-friendly broker offering this feature with zero commissions.
Start Investing with Fractional Shares
Open your Wealthsimple account today. Invest any amount, buy fractional XEQT, and get $25 free to start.
Get Your $25 Bonus →Every dollar invested is a dollar working toward your future