How to invest in US Stocks from just US$5 with fractional trading

This post was created in partnership with DBS Vickers. All views and opinions expressed in this article are Beansprout's objective and professional opinions.

I’ve noticed a growing trend among Singaporeans—many are looking to invest in the US market to diversify their portfolios beyond local stocks. 

After all, the appeal is hard to ignore with the recent surge in US stock prices. 

Earlier, I shared how I am making it a priority to invest at least 10% of my take-home pay as a money habit.

One question I often hear from investors looking to invest in US stocks is this: How can I invest in US stocks without needing a big budget? 

For example, just buying one share of Tesla would require at least US$ 338 (around S$ 450), based on its closing price on 26 November 2024. That’s a significant upfront commitment for many, especially young investors. 

With fractional trading offered by trading platforms, you can now access stocks with a high trading price for a lower investment amount. 

In this post, I’ll explain fractional trading and share how you can do so through DBS Vickers. Let’s dive in!

How fractional trading makes US stocks more accessible

Unlike traditional trading, where you need to buy whole shares of a stock, fractional trading lets you purchase a portion of a stock based on either a specific dollar amount or a fraction of a share. 

Instead of needing potentially hundreds of dollars to buy one whole share, you can own a small slice of it for a fraction of the cost. 

Here’s why this is such a game changer, especially for anyone eyeing the US market. 

For example, Apple, Amazon, and Microsoft have stock prices that can run into the hundreds or even thousands of dollars per share. 

This high price point can feel like a huge roadblock for someone just starting out or investing with limited capital.

Fractional trading removes that barrier, making it possible to start small and build a diversified portfolio of stocks you are interested in. 

Why DBS Vickers for fractional trading 

While many online brokerages offer access to US stocks, not all of them support fractional trading. 

I recently discovered that with DBS Vickers, you can begin your investment journey through fractional trading with as little as US$5. 

They even allow fractional shares up to four decimal points, giving you the flexibility to tailor your investments to your budget.

This means that the stocks with a high trading price —including those of major tech giants—are now within reach, no matter how much capital you’re starting with. 

Here are a few other reasons why it’s worth considering DBS Vickers for your investment needs. 

#1 - Competitive Fees

When it comes to fractional trading, DBS Vickers stands out with its competitive fee structure. 

At just US$0.96 per trade for quantities less than one share, it’s one of the most affordable options for fractional trading among popular brokers in Singapore.

In addition, there are zero platform fees for trading through DBS Vickers. 

DBS Vickers - Individual Account Fees

Plus, if you’re a young investor aged 18 to 25, you can enjoy free commissions on fractional trades by opening a Young Investor account! 

This makes DBS Vickers a budget-friendly option if you are a young investor starting small or building up your portfolio gradually.

Learn more about how to enjoy free commissions on fractional trades with a Young Investor Account fees here. 

DBS Vickers - Young Investor Account Fees

#2 – Wide range of investment options on DBS Vickers

Beyond fractional shares, DBS Vickers stands out by offering a wide range of investment options to suit different investor needs. 

Within the US market, you can gain access to exchange traded funds (ETFs), which also allows you to gain exposure to a basket of stocks with a single trade. 

Beyond US stocks, DBS Vickers offers access to major stock markets, including Singapore, Hong Kong, Australia, United Kingdom, Canada, and Japan.  

In Singapore, DBS Vickers connects directly to your CDP Securities account, allowing you have a peace of mind that the stocks are securely custodised by the CDP. 

With these options, investors can build a diversified portfolio across local and international markets.

#3 - Convenience and Accessibility

As Singapore’s largest bank, DBS offers an all-in-one platform that integrates banking and wealth-building solutions. 

You can link your DBS Vickers account directly to your DBS Multi Currency Account (includes DBS Multiplier and DBS My Account), enabling smooth fund transfers and easy tracking of both your investments and overall wealth. 

Investing with DBS Vickers comes with a bonus—you can potentially earn higher interest on your Multiplier account. 

Online equity trades made through DBS Vickers qualify as eligible transactions under the Investments category, allowing you to earn an attractive interest rate of up to 4.1% p.a. with the Multiplier account. 

What else should we consider when investing in fractional shares?

When it comes to fractional investing, understanding and considering trading commissions is crucial because these fees can disproportionately impact your total investment returns, especially when dealing with smaller trade amounts.

In fractional investing, you’re often investing smaller amounts, sometimes as little as a few dollars. 

Even a seemingly low commission, like US$1, can represent a significant percentage of your investment. 

For example, if you invest US$10 and pay a US$1 commission, that's 10% of your total investment gone to fees. 

This is a much larger percentage compared to trading full shares, where fees are spread across larger trade values.

Every dollar spent on trading fees is a dollar that’s not being invested and compounding over time. 

If commissions take up a large percentage of your trade, it reduces your potential to generate meaningful returns, especially for long-term strategies like dollar-cost averaging.

To address this, it’s wise to avoid making frequent trades, as the associated costs can quickly accumulate and eat into your returns. 

This underscores the importance of choosing a low-cost platform, especially for investors engaging in fractional trades, where fees significantly impact overall profitability.

What would Beansprout do?

Fractional trading allows us to gain access to US stocks, including leading tech giants like Tesla, Nvidia, and Apple, with a much lower investment amount. 

This makes it easier to start your investment journey without needing a large capital outlay.

With DBS Vickers, you can enjoy fractional trading at an affordable flat fee of just USD 0.96 per trade. And if you're aged 18-25, it gets even better—you can access fractional trading with zero commissions!

As a bonus, you can potentially earn higher interest on your Multiplier account when you invest with DBS Vickers. 

Through DBS, you can also gain access to a wide range of investment solutions such as digiPortfolio and Invest-Saver to grow your wealth. 

To top it off, DBS is currently running promotions for both new and existing DBS Vickers account holders.

New Account Promotion: Get US$30 Apple (AAPL) shares when you open a new account and make one US trade.

1. Open a new individual online trading account by 31 March 2025
2. Make one online US trade by 30 April 2025

Existing Account Promotion: Get US$30 Apple (AAPL) share when you trade in US market.

1. Make at least six online US trades, each trade executed with at least 1 share or more. (e.g. 1, 1.1234, 100, 100.0005)
2. Make the trades by 31 March 2025

Terms and conditions apply. Click here to find out more.

Learn more about DBS Vickers here. 

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Singapore dollar deposits of non-bank depositors and monies and deposits denominated in Singapore dollars under the Supplementary Retirement Scheme are insured by the Singapore Deposit Insurance Corporation, for up to S$100,000 in aggregate per depositor per Scheme member by law. Monies and deposits denominated in Singapore dollars under the CPF Investment Scheme and CPF Retirement Sum Scheme are aggregated and separately insured up to S$100,000 for each depositor per Scheme member. Foreign currency deposits, dual currency investments, structured deposits and other investment products are not insured.

DBS Vickers Disclaimers and Important Notice

This article is for general information only and should not be relied upon as financial advice. All stocks mentioned are for illustration purposes only. Any views, opinions or recommendation expressed in this article does not take into account the specific investment objectives, financial situation or particular needs of any particular person. Before making any decision to buy, sell or hold any investment or insurance product, you should seek advice from a financial adviser regarding its suitability.

This advertisement has not been reviewed by the Monetary Authority of Singapore.

The information and opinions contained in this article has been obtained from sources believed to be reliable, but DBS makes no representation or warranty as to its adequacy, completeness, accuracy or timeliness for any particular purpose.

This article is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation.

It is provided in Singapore by DBS Bank Ltd (Company Registration. No.: 196800306E), an Exempt Financial Adviser as defined in the Financial Advisers Act and regulated by the Monetary Authority of Singapore.

All investments come with risks and you can lose money on your investment. Invest only if you understand and can monitor your investment. Diversify your investments and avoid investing a large portion of your money in a single product issuer.