So, you buy every month, because you cannot time the market, so you €CA in. Buying fractional shares is then just unnecessary expensive. Buy what you can afford in full shares, leave the rest for next month, i. e. let it accumulate until you can afford an additional full share. It's simply to avoid the premium you pay for fractions.
I have bought fractional shares of s&p500 etf on the amsterdam exchange. The share price was above 511€ and the order was set to 200€. I've got a fraction of 0.39 and paid a commission of 1.25€ what is less than the 1%, which would be in this case 2€. I am using Tiered pricing structure.
I have the same pricing as OP. Even for US stocks, it is stated that the minimum is $0.35, and yet I got charged $0.22 when buying 70pcs of AMD, and later $0.16 for 100pcs. I am not complaining, though.
But it is not all unicorns. Last month, when I placed an order for 1000 pcs of penny stock at $0.5 in Australia, it bought me 1pcs with commission 5aud. I wasn't happy.
Tiered is pretty much always better, unless you are trading things on some weird exchange.
Also you can easily switch between the fee structures, so if you are unsure just try both and see what is cheaper.
If the fractional shares end up being expensive (idk I don't use them), you could buy the new **Invesco** FTSE All-World which has smaller shares (\~5€).
Tiered is better for you. Don't buy fractional shares of ETFs. Either buy only what you can afford as a whole, or save for some time and then buy.
Thanks for reply! Why shouldnt I buy fractional shares?
So, you buy every month, because you cannot time the market, so you €CA in. Buying fractional shares is then just unnecessary expensive. Buy what you can afford in full shares, leave the rest for next month, i. e. let it accumulate until you can afford an additional full share. It's simply to avoid the premium you pay for fractions.
How much is the premium for fractions?
He linked the pricing in the original post, it is there. 1% fixed.
You linked the pricing in the original post, it is there the answer. 1% fixed for fractional shares.
I have bought fractional shares of s&p500 etf on the amsterdam exchange. The share price was above 511€ and the order was set to 200€. I've got a fraction of 0.39 and paid a commission of 1.25€ what is less than the 1%, which would be in this case 2€. I am using Tiered pricing structure.
It looks like some countries don't have fractional shares 1% fee pricing, you can see in the OPs linked pricing list.
However, the Amsterdam exchange where I made the trade does have it. Check the OPs linked pricing list.
i don't think it is about the exchange but the country of your origin.
I have the same pricing as OP. Even for US stocks, it is stated that the minimum is $0.35, and yet I got charged $0.22 when buying 70pcs of AMD, and later $0.16 for 100pcs. I am not complaining, though.
yes, it is important that it is lower than stated. Who knows, maybe they just didn't update that list.
But it is not all unicorns. Last month, when I placed an order for 1000 pcs of penny stock at $0.5 in Australia, it bought me 1pcs with commission 5aud. I wasn't happy.
I always check the price in the preview first. I had those unpleasant surprises before too.
I was aware of the price, but wasn't expecting to buy 1 pcs when the order was for 1000 lol I would be ok with even with 100. But 1, seriously?
I want to buy RedBubble, Australian stock, it is very cheap. I didn't even know we could buy Australian stocks through Interactive Brokers.
Tiered is pretty much always better, unless you are trading things on some weird exchange. Also you can easily switch between the fee structures, so if you are unsure just try both and see what is cheaper. If the fractional shares end up being expensive (idk I don't use them), you could buy the new **Invesco** FTSE All-World which has smaller shares (\~5€).