Ready to simplify your investment strategy? Selling fractional shares on E*TRADE can be a straightforward process once you understand the steps involved. Whether you're rebalancing your portfolio, raising cash, or simply divesting from a particular company, this guide will walk you through everything you need to know.
The Power of Fractional Shares
Fractional shares have democratized investing, allowing you to own a piece of high-priced stocks without having to buy a full share. This means you can invest smaller amounts, diversify more easily, and put every dollar to work. When it comes to selling, the process is generally just as flexible as buying.
Let's dive into the step-by-step process of selling fractional shares on E*TRADE!
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| How To Sell Fractional Shares On Etrade |
Step 1: Get Ready to Log In and Access Your Portfolio
Are you sitting comfortably? Great! The very first thing you need to do is access your E*TRADE account. This is where all your investments reside, including those fractional bits and pieces you're looking to sell.
1.1 Navigating to the E*TRADE Website or Mobile App
For Web Users: Open your preferred web browser and go to the official E*TRADE website (etrade.com).
For Mobile Users: Launch the E*TRADE mobile app on your smartphone or tablet. If you don't have it installed, download it from your device's app store.
1.2 Securely Logging In
Tip: Read once for flow, once for detail.
Enter your User ID and Password in the designated fields.
Click or tap on the "Log In" button.
Security is paramount! Be prepared for any two-factor authentication E*TRADE might require, such as a code sent to your phone or email. This extra step helps keep your investments safe.
Step 2: Locating the Fractional Shares You Wish to Sell
Once you're securely logged in, it's time to find the specific fractional shares you want to liquidate.
2.1 Accessing Your Portfolio or Holdings
Look for a section typically labeled "Portfolio," "Accounts," or "Holdings." The exact terminology might vary slightly depending on whether you're using the website or the mobile app, but it will be where your current investments are listed.
Click or tap on this section to view a detailed breakdown of your assets.
2.2 Identifying the Specific Security
Scroll through your list of holdings until you find the particular stock or ETF that contains the fractional shares you intend to sell.
You'll likely see the number of shares you own, which might include a decimal (e.g., 5.75 shares of XYZ company). This decimal portion represents your fractional shares.
Step 3: Initiating the Sell Order
Now that you've identified the security, it's time to tell E*TRADE you want to sell.
Tip: Don’t just glance — focus.
3.1 Selecting the "Sell" Option
Next to the security you wish to sell, there will typically be an option to "Trade," "Sell," or a similar action button.
Click or tap on this button. This will usually take you to an order entry screen.
3.2 Specifying the Quantity to Sell
This is a crucial step for fractional shares. E*TRADE allows you to specify the amount you want to sell in a few ways:
By Quantity of Shares: You can enter the exact number of shares, including the decimal portion, that you wish to sell (e.g., 0.75 shares, or 5.75 shares if you're selling your entire position).
By Dollar Amount (if available): Some platforms may allow you to specify a dollar amount you want to sell (e.g., "$50 worth of XYZ stock"). ETRADE will then calculate the corresponding fractional share quantity based on the current market price. Check ETRADE's specific interface to see if this dollar-based selling option is readily available for fractional shares.
Self-Correction: While some brokers like Fidelity allow dollar-based selling, E*TRADE primarily focuses on quantity-based orders for fractional shares. For fractional shares specifically, you'll generally enter the exact quantity you wish to sell, including decimals. If you're selling a whole number of shares plus a fractional part, you'll input the combined total (e.g., "5.75").
Step 4: Choosing Your Order Type and Timing
Understanding order types is important for how your sale will be executed.
4.1 Understanding Market Orders
For most fractional share transactions, E*TRADE will likely default to a Market Order.
A market order means your shares will be sold immediately at the best available price in the market at the time your order is executed. This offers speed but no price guarantee.
4.2 Exploring Limit Orders (If Available)
Tip: Keep your attention on the main thread.
While less common for fractional shares, some brokers might offer Limit Orders.
A limit order allows you to set a specific price at which you want your shares to be sold. Your order will only execute if the market price reaches or exceeds your specified limit price. If the price isn't met, your order won't fill.
It's important to verify if ETRADE supports limit orders for fractional shares, as many platforms restrict them to market orders.*
4.3 Setting the Duration (Commonly "Good for Day")
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Good for Day (DAY): This is the most common duration for fractional share orders. It means your order will remain active only until the end of the current trading day. If it doesn't execute, it will expire.
Other options like "Good 'Til Canceled" (GTC) are generally not available for fractional share orders.
Step 5: Reviewing and Confirming Your Sell Order
Before hitting that final "Place Order" button, a thorough review is absolutely essential to prevent any errors.
5.1 Double-Checking All Details
Security Name/Ticker: Is it the correct stock or ETF?
Action: Is it set to "Sell"?
Quantity: Is the fractional amount you entered exactly what you intend to sell? (e.g., 0.25, 1.5, or your full 7.3 shares).
Order Type: Is it a "Market" order (or "Limit" if you're using that and it's supported)?
Estimated Proceeds: While not guaranteed with a market order, E*TRADE will typically provide an estimate of the cash you'll receive.
5.2 Understanding Potential Fees and Taxes
E*TRADE generally offers $0 commission for online U.S.-listed stocks and ETFs. However, there might be very small regulatory fees or exchange fees associated with selling. These are usually minimal.
Tax Implications: Remember that selling shares (even fractional ones) can trigger capital gains or losses, which will have tax implications. It's always wise to consult a tax professional for personalized advice.
5.3 Final Confirmation
QuickTip: Scan quickly, then go deeper where needed.
Once you're confident all details are correct, click or tap the "Preview Order" or "Review Order" button.
Carefully read the final order summary.
If everything looks good, proceed to click "Place Order" or "Confirm Order."
Step 6: Monitoring Your Order and Trade Confirmation
You've placed your order – now what?
6.1 Checking Order Status
After placing the order, you'll typically be directed to an "Order Status" or "Activity" page within E*TRADE.
Here, you can see if your order is "Pending," "Partially Filled," or "Filled."
6.2 Receiving Your Trade Confirmation
Once your fractional shares have been successfully sold, E*TRADE will send you a trade confirmation. This is usually sent via email and will also be available in your account documents section.
The confirmation will detail the exact price at which your shares were sold, the total proceeds, and any applicable fees.
Important Considerations When Selling Fractional Shares on E*TRADE:
Market Hours: Fractional share orders, especially market orders, are typically executed during regular market hours (9:30 AM to 4:00 PM ET, Monday-Friday, excluding holidays). Orders placed outside these hours will usually be queued for the next trading day.
Order Execution: ETRADE, like other brokers, aggregates fractional share orders. This means your fractional share sale might be combined with other clients' fractional orders to create a whole share order for execution in the market. While ETRADE aims for "best execution," the price you receive might slightly differ from the real-time quote you saw when placing the order due to market fluctuations during the aggregation process.
Transferability: Fractional shares generally cannot be transferred "in-kind" to another brokerage account. If you want to move your investment, you'll need to sell the fractional shares and then transfer the cash proceeds.
Dividend Reinvestment: If you had dividends set to reinvest into fractional shares of the same security, selling your entire position will typically stop this reinvestment for that particular stock.
10 Related FAQ Questions: How to Sell Fractional Shares on E*TRADE
Here are some quick answers to common questions you might have about selling fractional shares on E*TRADE:
How to:
How to find my fractional shares on E*TRADE? Go to your "Portfolio" or "Holdings" section within your E*TRADE account. Look for investments where the quantity is displayed with a decimal (e.g., 0.5 shares).
How to sell all my fractional shares of a particular stock on E*TRADE? When placing a sell order, enter the exact total quantity of shares you own for that security, including the decimal portion (e.g., if you own 7.3 shares, enter "7.3" as the quantity to sell).
How to sell only a portion of my fractional shares on E*TRADE? Enter the specific fractional quantity you wish to sell into the "Quantity" field (e.g., if you have 5.75 shares and only want to sell 0.5 shares, enter "0.5").
How to use a limit order for fractional shares on E*TRADE? ETRADE typically processes fractional share orders as market orders. It's unlikely that limit orders are supported for fractional shares. Always confirm this on the order entry screen or with ETRADE customer service.
How to know if E*TRADE charges fees for selling fractional shares? E*TRADE generally offers $0 commission for online U.S.-listed stock and ETF trades. However, minor regulatory and exchange fees may still apply. These will be shown on your trade confirmation.
How to view my completed fractional share sales on E*TRADE? After your order is filled, you can typically find the details in your "Order History," "Activity," or "Trade Confirmations" section within your E*TRADE account.
How to transfer fractional shares from E*TRADE to another broker? You cannot directly transfer fractional shares in-kind to another brokerage. You must sell your fractional shares on E*TRADE and then transfer the resulting cash to your other brokerage account.
How to sell fractional shares outside of regular market hours on E*TRADE? Fractional share orders are generally processed during regular market hours (9:30 AM to 4:00 PM ET). Orders placed outside these hours will usually be queued for the next trading day's open.
How to stop dividend reinvestment on a stock before selling its fractional shares on E*TRADE? You would typically need to adjust your dividend reinvestment preferences for that specific security within your account settings. Selling your entire position will also automatically stop future dividend reinvestment for that holding.
How to get help if I have trouble selling fractional shares on E*TRADE? If you encounter any issues, contact E*TRADE customer service directly. You can usually find their phone number and chat support options on their website under "Contact Us" or in their FAQ section. Their general customer service number is 800-387-2331.
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