Does Fractional Shares Have Cons?

Believe it or not but they do have some cons. 

One of these cons is when you want to transfer your assets to a new broker or something similar to that. The problem here is that it’s very unlikely that you will be able to do that with any fractional shares you own.

Whole shares are typically very easy to transfer, but any fractional shares may have to be sold so you can transfer the resulting cash.  So be warned about that. 

It is important to mention that you shouldn’t put all your money in fractional shares. It’s fine when you do it at the beginning of your investing journey but at some point when you gain experience and return from your investments it will be the time to move on to whole shares.

When it comes however to taxes it is important to mention that depending on your situation. The fractional shares or selling your fractional shares because of transferring your money might come with tax implications, fees or some other unforeseen costs.

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