You’ve just wasted the 0.5% stamp duty though, and also FX fees if it’s a foreign stock.
Re psychological barriers, it also may affect your ability to transfer all your shares to another broker, as they may not support fractionals. I also personally will probably only own whole amounts as then i can do the maths in my head quicker, when looking at share prices. I also don’t inherently trust any system that is giving me a percentage of something, for example, it’s not easy for me to know whether I’m losing a small amount of my money by purchasing a fractional, and do I know for sure that I will receive the exact proportional dividend amount. Nothing against Freetrade, it’s just harder for me to verify this.
With competing broker(s) it is possible to select between fractions or whole shares, which is making me lean towards using them. I think I read that Freetrade said they will offer the option to select? Someone can correct me if wrong.
Also say I own 0.01 fraction of a £1 share, if that share price rises to £1.001 and I sell, how do i get the cash in a denomination that doesn’t exist at that accuracy.