Schwab Stock Slices. A simple, low-cost way to give the gift of ownership.

Happy to answer any questions.

What is Schwab Stock Slices?

Schwab Stock Slices is an easy way to buy fractional shares for a set dollar amount. You have the option to buy shares in up to 30 top U.S. companies in a single transaction. The stocks you purchase through Schwab Stock Slices will be individual stocks in your account that you can hold and sell independently.

What's a fractional share?

A fractional share is when you own less than one whole share of a company. Fractional shares allow you to purchase stocks based on the dollar amount you want to invest, so you may end up with a fraction of a share, a whole share, or more than one share.

What’s a custodial account?

Great question. A custodial account is an account that’s set up and managed by an adult on behalf of a young person who’s legally a minor. A minor is typically someone who’s younger than 18 or 21, depending on the state. While the adult custodian controls the account, the assets in the account are the property of the minor. Once the minor reaches the "age of majority" (legal adult age in their state), they will take control of the assets in the account. Learn more about the potential benefits and limitations of a custodial account.

How can I learn more about opening a custodial account?

You can open and fund a custodial account online. In addition to information about yourself, you'll need the minor's contact details, birth date, and Social Security number. Note that trading in the account can only occur once the custodial account is open and funded. Learn more and open a custodial account.

Which stocks are available for purchase in Schwab Stock Slices?

The stocks available for purchase through Schwab Stock Slices are those in the S&P 500 Index (S&P 500), which includes the 500 leading large-cap U.S. publicly traded companies. The S&P 500 is often used as a benchmark or indicator of how large-cap U.S. equities are performing. See a list of companies in the S&P 500 Index. 

Is there a minimum or limit on how much I can invest through Schwab Stock Slices?

Yes, the minimum for a single transaction is $5, and the maximum is $50,000.

Is there a limit on the number of fractional shares I can buy through Schwab Stock Slices?

No. You can use Schwab Stock Slices to invest as often as you want.

What happens after I purchase stocks through Schwab Stock Slices?

The individual stock(s) will be in your brokerage account.

Do I need a Schwab account?

Yes, to buy a fractional share, you will need to have an eligible Schwab brokerage account (e.g., a custodial, individual, joint account, etc.).

Are there any fees?

There are no commissions when you buy stocks online through Schwab Stock Slices.

How can I let my loved one know about the stock in their custodial account?

If you use Schwab Stock Slices to buy shares through a custodial account, you can print and personalize an announcement of your purchase. See an example of an announcement.

What happens to my fractional shares if there is as stock split?

Multiply your current fractions by the whole number shares of the stock split to see what your future whole or fractional share holdings will be upon completion of the stock split. For example, if you owned .15 of a share and the company announced a split of three additional shares, you could anticipate holding .45 (.15 * 3) of a share when the stock split is complete. If you held .43 shares of the same company, at the completion of the stock split you'd have 1.72 shares. This equates to a whole share and a fractional share because the split would award you an additional 1.29 shares (.43 x 3) shares.