The Rise of Fractional Investing: How Anyone Can Own a Piece of the Market

Posted on: 13th March 2025 in Investments

Investing used to be a game for the wealthy. If you wanted to buy shares in big companies like Amazon or Tesla, you’d need thousands of pounds just to get started. But thanks to fractional investing, that’s no longer the case. Today, anyone can own a piece of the stock market, no matter their budget.

Fractional investing is revolutionising how people grow their wealth, making it easier for beginners and experienced investors alike to build a diversified portfolio. This is particularly useful for expatriates looking to invest in their home markets or diversify internationally without needing large amounts of capital.

In this article, we’ll break down what fractional investing is, why it’s gaining popularity, and how you can get started.

What is Fractional Investing?

Fractional investing is exactly what it sounds like—buying a fraction of a share rather than a full one. Instead of needing enough money to buy a whole share, you can invest any amount you’re comfortable with and receive a proportional ownership stake.

For example, if a single share of a company costs £500 and you invest £50, you own 10% of a share. As the company’s stock price moves, the value of your fractional share moves proportionally.

This investing method has been made possible by brokerage firms and fintech platforms that split full shares into smaller, tradeable pieces.

Why is Fractional Investing Gaining Popularity?

Fractional investing has taken off in recent years for several reasons:

• More accessibility: It allows everyday investors to participate in the market without needing large sums of money.

• Technology-driven change: Online trading platforms and mobile apps have made investing more user-friendly and accessible.

• Changing investment preferences: More investors are looking for diversified portfolios that don’t require huge capital commitments.

• Market volatility: Many people prefer to invest small amounts regularly rather than risking large sums at once.

These factors have made fractional investing a go-to strategy for those looking to grow their wealth at their own pace.

Key Benefits of Fractional Investing

Fractional investing comes with several advantages:

• Lower entry barrier: You no longer need thousands of pounds to start investing. A few pounds can get you started.

• Diversification: Instead of putting all your money into one or two stocks, you can spread your investment across multiple companies, reducing risk.

• Dollar-cost averaging: Investing a fixed amount regularly helps smooth out the impact of market ups and downs.

• Ownership of high-priced stocks: Companies like Google, Tesla, and Amazon have high share prices, but fractional investing lets you buy a portion rather than the whole share.

For expatriates, fractional investing is especially useful. It allows them to keep investing in their home-country stock market while managing expenses abroad. It also provides opportunities to invest in international markets, creating a more balanced global portfolio.

How to Invest in Fractional Shares

Investing in fractional shares is simple. Here’s how you can get started:

1. Choose a brokerage or investment platform – Platforms like Public.com and Lightyear offer fractional investing. Make sure to select one that fits your needs.

2. Decide on your investment amount – Instead of choosing how many shares to buy, decide how much you want to invest (e.g., £50 in Apple instead of one full share).

3. Set up a recurring investment plan – Many investors opt to invest regularly (weekly or monthly) to take advantage of dollar-cost averaging.

4. Monitor your portfolio – Like with any investment, track your progress and adjust your portfolio as needed.

Considerations and Drawbacks

While fractional investing is a fantastic opportunity, it does come with some limitations:

• Limited stock availability – Not all companies or platforms offer fractional shares.

• Transfer restrictions – Moving fractional shares between brokers can be tricky or sometimes impossible.

• Lack of shareholder rights – Fractional shareholders may not have voting rights in company decisions.

• Potential fees – Some brokers charge small transaction fees for fractional share purchases.

Understanding these limitations will help you make informed decisions when investing.

Recent Developments in Fractional Investing

The world of fractional investing is evolving quickly. In September 2024, the UK lifted restrictions on holding fractional shares in ISAs, making them even more accessible for investors.

Additionally, more traditional financial institutions are now offering fractional shares, recognising the demand for flexible investment options. This means that fractional investing is no longer just for fintech startups—it’s becoming mainstream.

Why Fractional Investing is Beneficial for Expats

Fractional investing is particularly useful for expatriates, offering several key benefits:

• Access to home and global markets – Expats can invest in familiar companies from their home country while exploring opportunities in their host country.

• Flexible investment strategy – It allows for international diversification without requiring large sums of money.

• Currency diversification – Holding investments in different markets helps mitigate currency fluctuations.

For expats who want to stay financially connected to multiple regions, fractional investing provides an easy and practical solution.

Conclusion

Fractional investing is changing the way people invest, making the stock market more accessible than ever before. Whether you’re a beginner looking to get started or an experienced investor seeking to diversify, fractional investing offers flexibility, affordability, and convenience.

For expatriates, this approach is particularly valuable, allowing them to invest across borders and build wealth without needing large upfront capital.

If you’re ready to take control of your financial future, consider exploring fractional investing today. With just a small amount, you can start owning a piece of the market and working towards your long-term goals.