Reply To: Discuss Stock Trading For Beginners

#188093
Christian Harris
Participant

    There’s nothing ‘wrong’ with day trading fractional stocks if you have a modest trading account balance, but there are notable considerations.

    Liquidity & Execution: Fractional shares often have lower liquidity than whole shares, leading to slower trade executions and less favourable pricing.

    Commission & Fees: Some brokers charge fees for fractional share trading, which can eat into profits, especially when making multiple daily trades. While commission-free trading platforms exist, any costs associated with fractional shares can significantly impact the profitability of day trading. For example, eToro spreads for stocks can be ridiculously wide.

    These drawbacks are less of an issue when swing trading fractional shares for more significant profits.