How To Get Microsoft Share With Just $10

Fractional Share Purchase Is The Best Way To Enter Into A Market

There are a few companies that I want to invest in like Google, Microsoft, and Tesla. These companies have shown great potential and have great plans for the future. But the price for each stock is high. So I felt reluctant in investing.

E.g., Microsoft’s Stock Price closed at USD 250.16 on 27th Feb ’23. Getting just 1 share would need a decent amount.

Let’s say, I just have 200 USD that I can afford to invest at the moment. With this amount, I won’t be able to buy even a single MSFT share.

Even if I could, wouldn’t it be nice to diversify my investment across multiple stocks?

Photo by Kei Scampa:

That’s when I learned about fractional share purchases. Some trading platforms do allow purchasing fractions of shares.

Using such a platform, with my 200 USD, I can buy:

  • a 0.2 fraction of MSFT stock for approximately 51 USD.
  • a 0.5 fraction of Alphabet (Google) stock for approximately 45 USD.
  • a 0.2 fraction of Mcdonald’s for approximately 53 USD.
  • a 0.2 fraction of Tesla stock for approximately 42 USD.

(Note these are just examples and the prices indicated are as per the closing price on a particular day. Stock prices may have changed)

With this method, I can also have a Systematic Investment over some time. I am optimistic that if I can keep my investments for a longer period, I will get a decent enough return.

I have tried on one such trading platform and a few things that I learned on my first investment:

  1. Foreign Exchange Rates: I transferred AUD to USD to this trading account and they applied a particular exchange rate which I felt was not the best.
  2. Fees: There was a considerably high brokerage fee and transaction fee applied. Always be aware of what fees will be applied.
  3. Long Term: I am investing a small amount of my savings and so, I can afford to take this risk. This is a long-term game.

I will provide regular updates on how my portfolio performed.

Disclaimer — This story/article is for informational purposes only. This is not intended to be financial, tax, or legal advice. Consult a professional before making any major financial decisions.

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How To Get Microsoft Share With Just $10 was originally published in The Capital Platform on Medium, where people are continuing the conversation by highlighting and responding to this story.