{"id":18206,"date":"2026-08-20T17:56:58","date_gmt":"2026-08-20T12:26:58","guid":{"rendered":"https:\/\/www.tickertape.in\/blog\/?p=18206"},"modified":"2026-08-20T17:58:17","modified_gmt":"2026-08-20T12:28:17","slug":"fractional-shares-us-stocks","status":"publish","type":"post","link":"https:\/\/www.tickertape.in\/blog\/fractional-shares-us-stocks\/","title":{"rendered":"Fractional Shares in US Stocks: How to Buy US Stocks from $1 as an Indian Investor"},"content":{"rendered":"\n<p>Imagine you want to <a href=\"https:\/\/www.tickertape.in\/blog\/why-should-you-prioritise-investing\/\">invest<\/a> in a US stock priced at $500, but you only want to start with $50. You do not need to wait until you can afford one full share. With fractional investing, you can use that $50 to buy a small portion of the stock and gain exposure to it without purchasing the entire share.<\/p>\n\n\n\n<p>Fractional shares make this possible by allowing investors to buy a portion of a company\u2019s share instead of one full share, making high-priced US stocks more accessible with smaller investment amounts. This guide covers how fractional shares work, their benefits and risks, and how Indian investors can buy fractional shares of US companies through Tickertape.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.tickertape.in\/blog\/fractional-shares-us-stocks\/#What-are-Fractional-Shares-in-India\" title=\"What are Fractional Shares in India?\">What are Fractional Shares in India?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.tickertape.in\/blog\/fractional-shares-us-stocks\/#How-Do-Fractional-Shares-Work\" title=\"How Do Fractional Shares Work?\">How Do Fractional Shares Work?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.tickertape.in\/blog\/fractional-shares-us-stocks\/#Why-Fractional-Shares-are-Available-in-US-Markets-but-Not-Yet-in-India\" title=\"Why Fractional Shares are Available in US Markets but Not Yet in India\">Why Fractional Shares are Available in US Markets but Not Yet in India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.tickertape.in\/blog\/fractional-shares-us-stocks\/#How-to-Invest-in-US-Stocks-From-India-Step-by-Step\" title=\"How to Invest in US Stocks From India: Step-by-Step\">How to Invest in US Stocks From India: Step-by-Step<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.tickertape.in\/blog\/fractional-shares-us-stocks\/#Step-1-Create-Your-US-Investing-Account\" title=\"Step 1: Create Your US Investing Account\">Step 1: Create Your US Investing Account<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.tickertape.in\/blog\/fractional-shares-us-stocks\/#Step-2-Complete-KYC\" title=\"Step 2: Complete KYC\">Step 2: Complete KYC<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.tickertape.in\/blog\/fractional-shares-us-stocks\/#Step-3-Connect-Your-Bank-Account\" title=\"Step 3: Connect Your Bank Account\">Step 3: Connect Your Bank Account<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.tickertape.in\/blog\/fractional-shares-us-stocks\/#Step-4-Add-Money-to-Your-US-Wallet\" title=\"Step 4: Add Money to Your US Wallet\">Step 4: Add Money to Your US Wallet<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.tickertape.in\/blog\/fractional-shares-us-stocks\/#Step-5-Make-Your-First-Investment\" title=\"Step 5: Make Your First Investment\">Step 5: Make Your First Investment<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.tickertape.in\/blog\/fractional-shares-us-stocks\/#Benefits-of-Fractional-Investing-in-US-Stocks\" title=\"Benefits of Fractional Investing in US Stocks\">Benefits of Fractional Investing in US Stocks<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.tickertape.in\/blog\/fractional-shares-us-stocks\/#Limitations-of-Fractional-Shares\" title=\"Limitations of Fractional Shares\">Limitations of Fractional Shares<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.tickertape.in\/blog\/fractional-shares-us-stocks\/#Tax-Treatment-of-Fractional-Shares-for-Indian-Investors\" title=\"Tax Treatment of Fractional Shares for Indian Investors\">Tax Treatment of Fractional Shares for Indian Investors<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.tickertape.in\/blog\/fractional-shares-us-stocks\/#Capital-Gains-Tax\" title=\"Capital Gains Tax\">Capital Gains Tax<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.tickertape.in\/blog\/fractional-shares-us-stocks\/#Dividend-Tax\" title=\"Dividend Tax\">Dividend Tax<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.tickertape.in\/blog\/fractional-shares-us-stocks\/#Schedule-FA-Disclosure\" title=\"Schedule FA Disclosure\">Schedule FA Disclosure<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.tickertape.in\/blog\/fractional-shares-us-stocks\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.tickertape.in\/blog\/fractional-shares-us-stocks\/#Frequently-Asked-Questions-About-Fractional-Shares-in-US-Stocks\" title=\"Frequently Asked Questions About Fractional Shares in US Stocks\">Frequently Asked Questions About Fractional Shares in US Stocks<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/www.tickertape.in\/blog\/fractional-shares-us-stocks\/#What-is-a-fractional-share-in-US-stocks\" title=\"What is a fractional share in US stocks?\">What is a fractional share in US stocks?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/www.tickertape.in\/blog\/fractional-shares-us-stocks\/#Can-I-buy-fractional-shares\" title=\"Can I buy fractional shares?\">Can I buy fractional shares?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/www.tickertape.in\/blog\/fractional-shares-us-stocks\/#How-to-buy-fractional-shares-in-US-stocks-from-India\" title=\"How to buy fractional shares in US stocks from India?\">How to buy fractional shares in US stocks from India?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/www.tickertape.in\/blog\/fractional-shares-us-stocks\/#What-is-the-minimum-investment-for-fractional-shares-on-Tickertape\" title=\"What is the minimum investment for fractional shares on Tickertape?\">What is the minimum investment for fractional shares on Tickertape?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/www.tickertape.in\/blog\/fractional-shares-us-stocks\/#Can-I-buy-fractional-shares-of-Indian-stocks\" title=\"Can I buy fractional shares of Indian stocks?\">Can I buy fractional shares of Indian stocks?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/www.tickertape.in\/blog\/fractional-shares-us-stocks\/#Do-fractional-shares-pay-dividends\" title=\"Do fractional shares pay dividends?\">Do fractional shares pay dividends?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/www.tickertape.in\/blog\/fractional-shares-us-stocks\/#Are-fractional-shares-taxed-differently-from-whole-shares\" title=\"Are fractional shares taxed differently from whole shares?\">Are fractional shares taxed differently from whole shares?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/www.tickertape.in\/blog\/fractional-shares-us-stocks\/#Can-I-sell-fractional-shares-at-any-time\" title=\"Can I sell fractional shares at any time?\">Can I sell fractional shares at any time?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-26\" href=\"https:\/\/www.tickertape.in\/blog\/fractional-shares-us-stocks\/#What-happens-to-fractional-shares-during-a-stock-split\" title=\"What happens to fractional shares during a stock split?\">What happens to fractional shares during a stock split?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What-are-Fractional-Shares-in-India\"><\/span>What are Fractional Shares in India?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A fractional share represents ownership of less than one full share of a stock or <a href=\"https:\/\/www.tickertape.in\/blog\/exchange-traded-funds\/\">ETF<\/a>. Instead of paying for an entire share, an investor can invest a smaller amount and receive proportionate exposure to the stock\u2019s price movement and, where applicable, dividends.<\/p>\n\n\n\n<p>For example, Apple shares were trading at around $305.78 as of 17 August 2026. An investor who wanted exposure to Apple but only had $50 to invest would not need to buy a full share. Through fractional investing, that $50 could buy roughly 0.16 of an Apple share. The value of that holding would then rise or fall in line with Apple\u2019s share price.<\/p>\n\n\n\n<p>Platforms such as Tickertape allow Indian investors to buy fractional shares of eligible US stocks, making it possible to gain exposure to higher-priced stocks without purchasing a whole share<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How-Do-Fractional-Shares-Work\"><\/span>How Do Fractional Shares Work?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Fractional shares work through brokers that support dollar-based investing. Instead of asking how many shares you want to buy, the platform can let you specify how much money you want to invest. The broker then converts that amount into the corresponding fraction of a share.<\/p>\n\n\n\n<p>For example, suppose Apple is trading at $305 per share and you want to invest $50. Your $50 would represent roughly 0.164 shares of Apple before accounting for fees or rounding. You would still gain exposure to Apple\u2019s price movement in proportion to the fraction you own.<\/p>\n\n\n\n<p>The process typically works like this:<\/p>\n\n\n\n<ol>\n<li><strong>You enter a dollar amount:<\/strong>\u00a0Instead of placing an order for one full share, you may enter something like \u201cInvest $50 in Apple\u201d. Some brokers also allow fractional quantities directly.<\/li>\n\n\n\n<li><strong>The broker processes the fractional order:<\/strong>\u00a0Fractional shares generally do not trade independently on stock exchanges in the same way whole shares do. The broker or its carrying broker handles the fractional component of the transaction and records your ownership within its system. The precise execution model can differ across brokers.<\/li>\n\n\n\n<li><strong>Your account receives fractional ownership:<\/strong>\u00a0Once the order is executed, your account may show a holding of 0.241 shares rather than a whole share. The level of decimal precision varies by platform. For example, Fidelity currently supports fractional quantities to three decimal places for eligible securities.<\/li>\n\n\n\n<li><strong>Your investment moves with the underlying stock:\u00a0<\/strong>\u00a0If that $50 holding rises by 10%, its value would increase to around $55. If the stock falls by 10%, it would decline to around $45 before accounting for fees, taxes, or currency movements.<\/li>\n<\/ol>\n\n\n\n<p>For Indian investors using Tickertape, this process is handled through the GIFT City International Financial Services Centre (IFSC) route, which is regulated by the International Financial Services Centres Authority (IFSCA). Money is remitted from the investor&#8217;s Indian bank account to a Global Investment Account in GIFT City, where it is converted to USD and used to purchase US stocks (including fractional units) through regulated US broker-dealers. The GIFT City route is fully RBI-compliant under the Liberalised Remittance Scheme.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why-Fractional-Shares-are-Available-in-US-Markets-but-Not-Yet-in-India\"><\/span>Why Fractional Shares are Available in US Markets but Not Yet in India<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Indian investors can buy fractional shares of eligible US stocks through platforms that provide access to US markets, but fractional ownership of Indian stocks listed on the <a href=\"https:\/\/www.tickertape.in\/blog\/national-stock-exchange\/\">NSE<\/a> or BSE is not currently available.<\/p>\n\n\n\n<p>The main reason is the difference in market structure.<\/p>\n\n\n\n<ul>\n<li><strong>In India<\/strong>, shares are generally held and recorded as whole units through depositories such as NSDL and CDSL. Domestic brokers cannot simply split a listed share into smaller units for investors.<\/li>\n\n\n\n<li><strong>In the US<\/strong>, brokers can facilitate fractional investing by holding whole shares and recording each investor\u2019s fractional entitlement within their own systems. The company itself does not issue a fractional share.<\/li>\n<\/ul>\n\n\n\n<p>In India, fractional investing is still evolving. IFSCA continues to operate a FinTech Sandbox framework in GIFT City for testing new financial products and services, but domestic fractional trading on NSE and BSE has not become part of the regular market structure.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How-to-Invest-in-US-Stocks-From-India-Step-by-Step\"><\/span>How to Invest in US Stocks From India: Step-by-Step<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Indian investors can access US-listed stocks and ETFs through platforms like Tickertape. Here\u2019s how the process works.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Step-1-Create-Your-US-Investing-Account\"><\/span>Step 1: Create Your US Investing Account<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Log in to<a href=\"https:\/\/www.tickertape.in\/?utm_source=chatgpt.com\">Tickertape<\/a>, go to&nbsp;<a href=\"https:\/\/www.tickertape.in\/us-stocks\">US Stocks<\/a>, and click Get Started to begin opening your US investing account.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Step-2-Complete-KYC\"><\/span>Step 2: Complete KYC<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Complete your KYC digitally through DigiLocker or upload the required documents manually. The process typically takes 15 to 30 minutes.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Step-3-Connect-Your-Bank-Account\"><\/span>Step 3: Connect Your Bank Account<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Link an eligible Indian bank account to remit funds under the&nbsp;<strong>L<\/strong>iberalised Remittance Scheme (LRS). Supported banks include HDFC Bank, Axis Bank, ICICI Bank, Kotak Mahindra Bank, and IDFC Bank.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Step-4-Add-Money-to-Your-US-Wallet\"><\/span>Step 4: Add Money to Your US Wallet<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Transfer funds from your linked bank account to your US Wallet. Depending on your bank, the funds can take up to 7 business days to reflect.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Step-5-Make-Your-First-Investment\"><\/span>Step 5: Make Your First Investment<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Search for the US stock or&nbsp;<a href=\"https:\/\/www.tickertape.in\/screener\/us-stocks\/prebuilt\/us-etf-screener\">US ETF<\/a>&nbsp;you want to invest in, enter your investment amount, and place the order. You can start investing with as little as $1, including through fractional shares where available.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Benefits-of-Fractional-Investing-in-US-Stocks\"><\/span>Benefits of Fractional Investing in US Stocks<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul>\n<li><strong>Access to High-Priced Stocks:\u00a0<\/strong>\u00a0Fractional shares allow investors to access stocks that may otherwise require a large upfront amount. For example, instead of paying for one full share of a company, an investor can put in $20, $50, or another smaller amount and own the corresponding fraction. This is particularly useful for stocks with high per-share prices.<\/li>\n\n\n\n<li><strong><a href=\"https:\/\/www.tickertape.in\/blog\/mitigating-portfolio-risk-through-diversification\/\">Diversification<\/a> Across <a href=\"https:\/\/www.tickertape.in\/blog\/analyse-stocks-and-trade-in-multiple-shares-via-transactions\/\">Multiple Stocks<\/a>:<\/strong>\u00a0Fractional investing can make it easier to spread a limited amount across several companies instead of using most of it to buy one full share. For example, an investor with $100 could divide that amount across several US companies and hold small fractions of each rather than concentrating the entire amount in one stock.<\/li>\n\n\n\n<li><strong>Makes Fixed-Amount Investing Easier:<\/strong>\u00a0Fractional shares allow investors to invest a fixed amount regardless of the current share price. For example, someone investing $50 every month can continue putting in the same amount even if a stock moves from $200 to $250. The number of fractional shares purchased simply changes with the price.<\/li>\n\n\n\n<li><strong>Access to a Wider Range of US Sectors:<\/strong>\u00a0US markets provide exposure to industries such as semiconductors, cloud computing, AI infrastructure, biotechnology, and digital platforms. Fractional investing makes it possible to gain exposure to companies in these sectors without needing enough capital to purchase full shares of each stock.<\/li>\n\n\n\n<li><strong>Currency Diversification:\u00a0<\/strong>Investing in USD-denominated US stocks provides exposure to the US dollar. If the rupee weakens against the dollar over time (the rupee depreciated by approximately 38% against the dollar between 2015 and 2025), the INR value of US stock holdings benefits beyond just the stock&#8217;s own price movement.<\/li>\n\n\n\n<li><strong>Proportional <a href=\"https:\/\/www.tickertape.in\/blog\/cash-dividend-vs-stock-dividend\/\">Dividend<\/a> Participation:\u00a0<\/strong>Fractional <a href=\"https:\/\/www.tickertape.in\/blog\/shareholders\/\">shareholders<\/a> receive dividends proportional to their ownership. If a company declares a $1 dividend per share and you own 0.35 shares, you receive $0.35. Dividends are credited to your US Wallet and can be reinvested to further build your fractional positions.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Limitations-of-Fractional-Shares\"><\/span>Limitations of Fractional Shares<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul>\n<li><strong>Limited Voting Rights:<\/strong>\u00a0Fractional shareholders may not receive voting rights in the same way as investors who own full shares. How voting is handled depends on the broker or custodian. This does not affect the economic value of the holding, but it can limit participation in shareholder decisions.<\/li>\n\n\n\n<li><strong>Limited Transferability Between Brokers:<\/strong>\u00a0Fractional shares generally cannot be transferred directly from one broker to another. For example, if an investor holds 0.37 shares of a company and changes platforms, the fractional portion may need to be sold first. This can trigger capital gains tax and also expose the investor to price changes before reinvesting.<\/li>\n\n\n\n<li><strong><a href=\"https:\/\/www.tickertape.in\/blog\/corporate-actions\/\">Corporate Actions<\/a> May Be Handled Differently:<\/strong>\u00a0Stock splits, mergers, spin-offs, and other corporate actions can affect fractional holdings differently. A 2-for-1 <a href=\"https:\/\/www.tickertape.in\/blog\/stock-split\/\">stock split<\/a> would normally double the number of shares held, so 0.5 shares could become 1 share. However, some events may result in cash settlements instead of additional fractional shares, depending on the broker\u2019s policy.<\/li>\n\n\n\n<li><strong>Execution Can Differ From Whole-Share Orders:<\/strong>\u00a0Fractional orders may not always be executed in exactly the same way as whole-share orders. Some platforms batch or aggregate these orders, which can lead to a slightly different execution price. Certain order types, such as limit orders, may also not be available for fractional trades on every platform.<\/li>\n\n\n\n<li><strong>Not Every Stock Supports Fractional Investing:<\/strong>\u00a0Fractional investing is usually available for many large-cap US stocks and popular ETFs, but availability varies by platform. Smaller, less liquid, or newly listed securities may not be eligible.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Tax-Treatment-of-Fractional-Shares-for-Indian-Investors\"><\/span>Tax Treatment of Fractional Shares for Indian Investors<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Fractional shares generally follow the same Indian tax rules as whole shares of the same US company. Whether an investor owns 0.5 shares or 50 shares, the tax treatment depends on the underlying foreign security and the holding period.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Capital-Gains-Tax\"><\/span>Capital Gains Tax<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>For Indian tax purposes, US shares are not treated as securities listed on a recognised Indian stock exchange. As a result, the 24-month holding period generally applies when determining whether gains are short-term or long-term.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Holding Period<\/strong><\/td><td><strong>Gain Type<\/strong><\/td><td><strong>Tax Treatment in India<\/strong><\/td><\/tr><tr><td>Up to 24 months<\/td><td>Short-Term Capital Gains<\/td><td>Taxed at the investor\u2019s applicable <a href=\"https:\/\/www.tickertape.in\/blog\/what-is-income-tax\/\">income tax<\/a> rate<\/td><\/tr><tr><td>More than 24 months<\/td><td>Long-Term Capital Gains<\/td><td>12.5% without indexation, plus applicable surcharge and cess<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>For transfers on or after 23 July 2024, long-term capital gains are generally taxed at 12.5% without indexation. The \u20b91.25 lakh annual LTCG exemption under Section 112A does not apply to US shares, as that provision applies to specified securities such as eligible Indian-listed equities.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Dividend-Tax\"><\/span>Dividend Tax<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Dividends from US stocks may be subject to US withholding tax before they are credited to the investor. Under the India-US DTAA, the withholding rate for most individual Indian investors can be limited to 25% of the gross dividend, subject to treaty eligibility and submission of a valid Form W-8BEN.<\/p>\n\n\n\n<p>The dividend income is also taxable in India at the investor\u2019s applicable income tax rate. To avoid double taxation, eligible investors may claim Foreign Tax Credit for tax already paid or withheld in the US, subject to Indian tax rules.<\/p>\n\n\n\n<p>To claim Foreign Tax Credit, investors generally need to report the relevant foreign income and tax details and submit Form 67 within the prescribed timeline.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Schedule-FA-Disclosure\"><\/span>Schedule FA Disclosure<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Resident and ordinarily resident Indian taxpayers holding US stocks, including fractional shares, generally need to disclose their foreign assets in Schedule FA of the Income Tax Return. This disclosure may be required even if the shares were not sold during the year.<\/p>\n\n\n\n<p>ITR-1 and ITR-4 should not be used where Schedule FA reporting is required. Depending on the investor\u2019s income profile, ITR-2 or ITR-3 may be applicable<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Fractional shares make it easier for Indian investors to access US-listed stocks without buying a full share. However, investors should still consider limitations around voting rights, transferability, taxes, LRS rules, and corporate actions.<\/p>\n\n\n\n<p>Platforms like Tickertape allow investors to access eligible US stocks with smaller amounts. The\u00a0<a href=\"https:\/\/www.tickertape.in\/screener\/home\/us-stocks\">Tickertape US Stocks Screener<\/a>, with 70+ <a href=\"https:\/\/www.tickertape.in\/blog\/14-new-filters-on-tickertape-stock-screener\/\">filters<\/a>, can also help compare companies across valuation, growth, profitability, and returns before investing.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Frequently-Asked-Questions-About-Fractional-Shares-in-US-Stocks\"><\/span>Frequently Asked Questions About Fractional Shares in US Stocks<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div id=\"rank-math-faq\" class=\"rank-math-block\">\n<div class=\"rank-math-list \">\n<div id=\"faq-question-1787228071046\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"What-is-a-fractional-share-in-US-stocks\"><\/span><strong>What is a fractional share in US stocks?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>A fractional share represents ownership of less than one full share of a US-listed stock or ETF. It gives investors proportionate exposure to price movements and, where applicable, dividend payments.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1787228072362\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"Can-I-buy-fractional-shares\"><\/span><strong>Can I buy fractional shares?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Yes, fractional investing is available for eligible US-listed stocks and ETFs through platforms that support it. Instead of buying one full share, investors can choose a smaller dollar amount and receive the corresponding fraction of the share.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1787228073153\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"How-to-buy-fractional-shares-in-US-stocks-from-India\"><\/span><strong>How to buy fractional shares in US stocks from India?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Indian investors can buy eligible fractional US stocks through platforms like Tickertape. On Tickertape, users can open a US investing account, complete KYC, add funds under the RBI\u2019s LRS framework, and invest in supported US stocks with small dollar amounts instead of buying one full share.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1787228073954\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"What-is-the-minimum-investment-for-fractional-shares-on-Tickertape\"><\/span><strong>What is the minimum investment for fractional shares on Tickertape?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>The minimum investment for eligible fractional US stocks on Tickertape is $1 per order. This allows investors to access higher-priced US stocks without needing to buy one full share.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1787228074867\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"Can-I-buy-fractional-shares-of-Indian-stocks\"><\/span><strong>Can I buy fractional shares of Indian stocks?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>No, fractional shares of stocks listed on the NSE or BSE are not currently available to retail investors. Fractional investing is primarily available through platforms that provide access to eligible US-listed stocks and ETFs.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1787228266012\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"Do-fractional-shares-pay-dividends\"><\/span><strong>Do fractional shares pay dividends?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Yes, if the underlying company pays dividends, even if you own fractional shares. The dividend is paid in proportion to the fraction held, so owning 0.25 shares of a stock paying a $1 dividend would result in a $0.25 dividend before taxes.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1787228267370\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"Are-fractional-shares-taxed-differently-from-whole-shares\"><\/span><strong>Are fractional shares taxed differently from whole shares?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>No, fractional shares generally follow the same Indian tax treatment as whole shares of the same US stock. Capital gains depend on the holding period, while dividends may be subject to US withholding tax and Indian taxation.<br \/><em><strong>Disclaimer<\/strong>: This is for informational purposes only. Please consult a tax professional for personalised advice.<\/em><\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1787228293909\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"Can-I-sell-fractional-shares-at-any-time\"><\/span><strong>Can I sell fractional shares at any time?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Fractional shares can generally be sold through the same platform during supported US market hours. However, fractional positions may not be transferable between brokers and may need to be sold before switching platforms.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1787228305619\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"What-happens-to-fractional-shares-during-a-stock-split\"><\/span><strong>What happens to fractional shares during a stock split?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Stock splits are usually applied proportionately to fractional holdings. For example, 0.4 shares would become 0.8 shares after a 2-for-1 split, while the overall value remains broadly unchanged immediately after the split.<\/p>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n<p><strong>Disclaimer:<\/strong> Fractional shares in US stocks involve market, currency, liquidity, tax and platform-specific risks. Availability, minimum investment, order execution, voting rights, transferability and corporate-action treatment may vary across brokers and securities. This information is for educational purposes only and does not constitute investment advice. Please consult a financial or tax professional for guidance based on your individual circumstances.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Imagine you want to invest in a US stock priced at $500, but you only want to start with $50. You do not need to wait until you can afford one full share. With fractional investing, you can use that $50 to buy a small portion of the stock and gain exposure to it without<\/p>\n","protected":false},"author":173,"featured_media":18208,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[1],"tags":[],"acf":[],"modified_by":"Durga Mishra","jetpack_featured_media_url":"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2026\/08\/fractional-shares.png?wsr","_links":{"self":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/18206"}],"collection":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/users\/173"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/comments?post=18206"}],"version-history":[{"count":4,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/18206\/revisions"}],"predecessor-version":[{"id":18212,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/18206\/revisions\/18212"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media\/18208"}],"wp:attachment":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media?parent=18206"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/categories?post=18206"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/tags?post=18206"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}