Schwab Stock Slices Review: Do you ever look at Apple, Tesla, Facebook, or Google and wish you had the money to buy them? What if you only have $50 or $100 monthly to invest? Fractional shares solve this problem. Did you know you can own some of the biggest companies in the world for only $5? This post gives you a Schwab stock slices review and other great options for fractional shares.
Hey there! I’ve been investing for years now, and one question I keep hearing from newbies is “Are stock slices worth buying?” If you’ve been eyeing those expensive stocks like Apple, Tesla, or Google but don’t have thousands to invest you’re in the right place. Let’s break down everything about stock slices (also known as fractional shares) and whether they’re worth your hard-earned cash in 2025.
What Are Stock Slices Anyway?
Remember back in school when you learned about fractions? Well, stock slices are basically the investing version of that math lesson. Instead of buying a whole share of a company (which might cost hundreds or even thousands of dollars), you can purchase just a fraction of a share.
For example, if Amazon is trading at $3500 per share but you only have $100 to invest you could buy approximately 2.8% of one Amazon share. You’ll own that percentage of a share and receive the same percentage of dividends if the company pays them.
Why Stock Slices Have Become So Popular
When I first started investing, you needed to buy whole shares, which locked many people out of owning the biggest companies. But now, fractional investing has democratized the stock market in some pretty cool ways
- Lower barrier to entry: You can start investing with as little as $5
- Portfolio diversification: Spread small amounts across multiple companies
- Dollar-cost averaging: Invest consistent dollar amounts regardless of share prices
- Access to premium stocks: Own pieces of expensive stocks like Google or Amazon
Schwab Stock Slices: A Closer Look
Charles Schwab is one of the major players offering fractional shares through their “Stock Slices” program. Here’s what you should know:
Pricing and Basics
- $5 minimum investment per slice
- Can invest in up to 30 stocks at once
- Zero commission trading
- Limited to S&P 500 companies only
Pros of Schwab Stock Slices
- Affordable entry point: Start with just $5
- Trusted broker: Schwab is well-established (they even bought TD Ameritrade recently)
- Diversification: Spread small investments across multiple blue-chip companies
- Dividend payments: Yes, you’ll receive proportional dividends
- No account minimums: $0 to open an account
Cons of Schwab Stock Slices
- Limited selection: Only S&P 500 companies available
- Less flexibility: Some competitors offer more customization options
- Restricted to 30 stocks per order: May be limiting for some investors
Are Stock Slices Actually Worth It?
The answer depends on your situation, but for many investors—especially beginners—stock slices are absolutely worth buying. Here’s why:
Perfect for Beginners with Limited Capital
If you’re just starting out with $50 or $100 a month to invest, fractional shares are a game-changer. Instead of saving up for months to buy one share of an expensive stock, you can start building positions immediately.
I remember when I first started investing, I had to wait three months to save enough for one share of Apple! Now new investors can start building positions in top companies right away.
Great for Building a Diversified Portfolio
One of the fundamental rules of investing is diversification—not putting all your eggs in one basket. With fractional shares, even someone with $100 can divide that money across 10 different companies rather than being forced to put it all in one affordable stock.
Ideal for Dollar-Cost Averaging
Dollar-cost averaging—investing fixed amounts at regular intervals—is a proven strategy for long-term investors. Fractional shares make this possible regardless of share prices.
For example, investing exactly $100 in Google every month wouldn’t be possible with whole shares, but it’s easy with fractional shares.
Who Should Avoid Stock Slices?
Stock slices aren’t for everyone. You might want to avoid them if:
- You’re an active trader making frequent moves
- You have specific investment needs that require whole shares
- You’re looking to invest in companies outside major indexes
How Stock Slices Compare Across Platforms
Schwab isn’t the only player in town. Here’s how the major fractional share options stack up:
| Platform | Minimum Investment | Stock Selection | Max Stocks Per Order |
|---|---|---|---|
| Schwab Stock Slices | $5 | S&P 500 only | 30 |
| M1 Finance | No minimum | Wide selection | ~100 in a “pie” |
| Robinhood | $1 | Thousands of stocks | Unlimited |
| Fidelity | $1 | Thousands of stocks | Unlimited |
M1 Finance: A Strong Alternative
When comparing options, I’ve been particularly impressed with M1 Finance’s approach. Unlike Schwab’s more limited offering, M1 allows you to:
- Create “pies” with up to ~100 different stocks
- Assign custom weightings to each position
- Automatically rebalance your portfolio
- Start with any amount (no $5 minimum per slice)
The flexibility to say “I want 10% in Apple, 5% in Microsoft, and 2% in Tesla” gives you much more control over your portfolio structure.
How to Start Investing with Stock Slices
Ready to give stock slices a try? Here’s how to get started:
- Choose a broker – Schwab, M1 Finance, Robinhood, and Fidelity all offer good options
- Open an account – Most have $0 minimums and take just a few minutes online
- Fund your account – Connect your bank account and transfer funds
- Select your stocks – Choose which companies you want to own pieces of
- Place your order – Specify dollar amounts rather than share quantities
- Monitor and adjust – Track performance and make changes as needed
Common Questions About Stock Slices
Do stock slices pay dividends?
Yes! If you own 1/10 of a share, you’ll receive 1/10 of the dividend that would be paid on a full share.
How do I sell my stock slices?
You sell them the same way you sell regular shares, through your brokerage platform.
Can I transfer stock slices between brokers?
This can be tricky. Some brokers may liquidate fractional positions during transfers, while others may round up or down to whole shares.
Are there tax differences with fractional shares?
Nope. The tax treatment is identical to regular shares—you’ll pay capital gains tax on profits when you sell.
My Personal Take on Stock Slices
I’ve been using fractional shares in my own portfolio for about three years now, and I gotta say—they’re pretty awesome. Before, I’d have cash sitting idle because I couldn’t afford full shares of certain companies. Now, every dollar gets invested exactly how I want.
For newer investors especially, I believe stock slices are 100% worth buying. They’ve removed the financial barriers that kept many people from investing in quality companies. Instead of being forced into penny stocks or other risky investments because of limited capital, anyone can now own pieces of the world’s best businesses.
Final Thoughts: Are Stock Slices Worth It in 2025?
The bottom line: Yes, stock slices are absolutely worth buying for most investors in 2025, especially if:
- You’re just getting started with investing
- You have limited capital to deploy
- You want to own pieces of expensive but quality companies
- You’re focused on building a diversified, long-term portfolio
The ability to start investing with just $5 and own pieces of the world’s best companies is revolutionary. It’s democratized investing in a way that wasn’t possible a decade ago.
However, make sure you’re choosing the right platform for your needs. While Schwab is reliable and well-established, other options like M1 Finance might offer more flexibility depending on your investing style.
Have you tried investing in stock slices? I’d love to hear about your experience in the comments below! And remember—investing is a marathon, not a sprint. Those small slices can grow into something substantial over time.
Happy investing!
Schwab Stock Slices Pros and Cons
Pros
- Affordable: Get started with as little as $5.
- Accessible: Any S&P 500 stock is now within reach.
- Have the freedom to choose up to 30 stocks each time.
Cons
- Only available for stocks of S&P 500 companies
- Too restrictive with the ways that they’re allowing their stocks to be sliced
Charles Schwab’s biggest claim to fame is enabling the average Joe to own some of the biggest companies for only $5. You can buy a slice for as little as $5, giving you ownership up to 1, 2, or 3% of that particular company.
For example, if a stock costs $100 a share, and you buy a $10 slice, you’d own 10% of a share. Or, you can pick ten stocks, “slices,” and put $5 in each stock, equaling a big pie. Or, you can buy up to 10 slices at a time.
Schwab Stock Slices Pricing Review
Schwab Stock Slices cost $5 a slice, and you can invest up to ten slices at a time. For those of you who’ve been shopping around, you’d notice that this is a little bit different than other fractional share providers like M1 Finance. M1 Finance allows you to build a pie consisting of about 100 different stocks. With Schwab Stock Slices, you’re more or less restricted to the S&P 500.