How Women Can Use Fractional Investing Platforms To Build Wealth

Investing in profitable stocks can be a key strategy in one’s wealth accumulation. While statistics show that approximately 70% of women own stocks, there is still a significant portion of women that wished they started earlier. Even with the numbers suggesting that women are gaining more financial control, gender gaps in investing persist, highlighting the continuous need for education and opportunities to invest, no matter her stage of life.

Fractional shares, also known as dollar based investing, has lowered the barrier of entry for women when it comes to investing, opening doors for women of all ages. According to Fidelity, fractional shares is a trading feature that lets you purchase a portion of stock from companies or ETFs based on a dollar amount, as opposed to whole shares that are more expensive. This may mean owning a small percentage of a stock but at least there is ownership, a necessary position to be in when gaining financial independence. 

In the past, women often faced significant barriers, either being excluded from investing altogether or needing to save for long periods just to afford high-value stocks. Today, fractional shares make it possible to begin investing earlier and with smaller amounts, giving women greater access to the tools needed to build generational wealth.   

Having a financial plan and understanding your risk tolerance is necessary before investing in fractional shares. Whether it is saving for retirement, building an emergency fund, or creating long term wealth, staying focused on your financial goals will help you make decisions that align with the vision you want for your life. 

Equally important is pairing your plan with education, so you can invest with confidence. Research goes to show that women are about two times more likely than men to view their knowledge on investing as “non-existent.” While starting your investment journey can feel exciting, it is crucial to take the time to understand how fractional shares work, along with key concepts such as fractional dividend reinvestment and securities. Building this foundation not only reduces uncertainty but also empowers Women to take action fueled by education, not emotion.

Finding platforms to invest with is easier than ever. Today’s apps and brokerages offer a wide range of different features, making it important that you chose one based on your needs as an investor. Some platforms are focused on beginner friendly trades, easy to use navigation, and low or minimum fees. Other platforms are more advanced, providing in-depth research, detailed performance tracking, or automatic dividend reinvestment. 

From apps like Robinhood that appeal to beginner investors, to well established brokerages like Fidelity and Charles Schwab, there are countless options available to the public. The key to choosing what’s right for you is to compare fees, features, and usability to find the right fit for your lifestyle and financial goals. With patience and research, you may find a tool that works for you, helping you to close the gender gap in wealth building and moving you one step closer to long term financial gain and financial freedom.

Once you have a financial plan in place and have chosen a platform that fits your needs, the most important step is to take action. Investing doesn’t have to feel out of reach or intimidating. Fractional shares make it possible to build wealth while starting small, taking less risks, and learning as you move towards your financial goals. Beginning with even small amounts is a powerful step on your journey to financial independence and gaining confidence as an investor. 

For far too long, women have faced barriers and delays when it comes to investing but right now, the opportunities are more accessible than ever. With education, planning, and the right tools, women have what they need to dominate the stock market so don’t wait for the “perfect moment.”