Fractional trading places value stocks more accessible to new and small investors

The basic rules of investing still apply—always do your own research

Marques cautioned that trading, whether in whole or in part, is not for everyone—especially those who can't take the time to research a company before buying.

“Although it makes (trading) easier to do so partially with a small budget, that takes a lot of research,” Marques said.

“In many cases for your average Canadian who may not have the time or interest or knowledge to research companies or take this kind of gamble on just one company, it's still very appropriate to work with managed portfolios,” he suggested.

Investing fundamentals still apply to equity investing, says Boisvert, such as being mindful of your timing and risk tolerance.

For example, if you have a goal of putting a down payment on a home next year, an investor shouldn't put that money into rates that may change in the short term, he explained.

Instead, rely on tried-and-true investment concepts like diversity, which is also easy to achieve in fractional units, he said. Fractional shares also make it easier to buy stocks at different prices, especially if the purchases are spread out over months.

It's important not to put all your eggs in one basket, and not have more than 5% of the portfolio in any one of your holdings, adds Boisvert.

“When we talk about buying stock units, remember to avoid FOMO (fear of missing out),” warns Boisvert.